Opinion  Sever Plocker
Trump's financial house of cards has collapsed
Sever Plocker
Published: 23.12.18, 14:37
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32 Talkbacks for this article
1. You are forgetting why he was elected
Matt ,   Portage   (12.23.18)
Trump was elected to stop the globalism that was sweeping America and stop the disease ridden, violent, drup carrying illegals from pouring in. Things prior administrations allowed willingly.

The stock market means little. Blue chip stocks are way overvalued to the tune of over $1000 in many instances so the middle class is not involved anyway unless you are lucky to have a 401K. Even in those instances the figtht against globalism can only help the middle class in the long runa and we know that.

Stop piling on. The rhetoric does not work anymore. Liberalism has been exposed. Read your history.
HERMAN ROSEN ,   HOLLAND   (12.23.18)
3. The Flocker smells blood in the water,so he jumps in to bite
Steve Benassi ,   Minneapolis USA   (12.23.18)
4. Obama's economic bubble of low interest rates has burst
Steve Benassi ,   Minneapolis USA   (12.23.18)
The Flocker understanding of economy is abysmal at best
5. The truth is more complex
Mr.Reason ,   Berlin   (12.23.18)
Being a world reserve curency, backed up by crude oil trade, the US Dollar is shifting production from USA in to the world economy.
Every nation needs energy, and therefore those countries need to acquire the USD to pay the energy bill. They flood the US market with goods.
After 50 years since the OPEC deal the structure of the US economy has shifted very strongly from production towards consumption, and service.
Now the country is consumming more then it is producing, using the loans, and investments, it attains from abroad.
The scheme is simple: US prints the currency for which it acquires goods from abroad. The producers abroad pay their bills and the profit goes back to Wallstreet as a reserve in to Fed's obligations, or stock market, or other more or less solid investments.
The party goes on for all. US government is overspending, takes cheep loans as needed, acquires goods and products, similar to private and commercial consumers.
At one point USD liquidity is poduced in abundance, which inflates the stock markets.
Every 10 years the stock market plumbets, eleminating here by the inflationary oversupply of liquidity. Inflation is stopped. Some investors have lost its reserves.
The government can usually pay back its debt on time, due to a growing US economy, which can easier finance its projects due to abundance of liquidity on Wall street, and therefore has advantages in competition with other nations.

So, what went wrong?
Other nations economies have developed. US economy lost too much manufacturing industries. Became dependent on imports. Didn't want to share influence. Disregarded intersts of friend and foe. Allowed social injustice whithin the US. Began manipulating honest media. Did not allow for political pluralism. Kept two similar parties without real alternatives. (That's how Trump got ellefted, becausebpeople wanted change).
Started multiple conflicts abroad to maintain the crude oil trade in US Dollar. Antagonized Russia instead of integrating it. Underestimated Russia. Lost military edge. Lost it's good image due to application of double standards in foreign policy. ContinuEs to misinform it's population.
Recepy for loosing the empire, becoming to a strong countries among several others.

6. american economy is doing great
mordechai   (12.23.18)
Seems you don't understand much about the American economy. It's doing great. Stock market had a huge run up and was massively overvalued. Volatility is a normal and healthy part of the stock market.

There have been multiple interest rate hikes due to the strength of the economy. Under Obama interest rates were near zero to try and keep it from tumbling into a depression. Now that its healthy its not needed to have an easy money policy

With interest rates rising fixed income investments become a good alternative for conservative investors who naturally shift some assets from the stock market to fixed income investments causing a correction.
7. BS
jeff ,   USA   (12.23.18)
It isnt Trump you dolts, its straight up the fed reserve and
democrats.. knock off all the liberal garbage you think your Hareetz now or what?
8. Mr. Plocker, what you see here is normal event and ...
leo ,   usa   (12.23.18)
... it could also be opportune time to buy (that's what I do).

Please, read Chaim Minsky and others before offering politically motivated "analysis" of any economy situation, be it Obama's or be it Trump's.

9. Chaos in America
Charlie ,   SF, USA   (12.23.18)
Yes, but at least "he's good for Israel."
10. At least the Author makes no pretense about how he feels
about Trump.
Why should he?!
Trump Derangement Syndrome is just another mental affliction and no one should be ashamed of one’s illness!!!
11. Anti-Trump FAKE NEWS rubbish
Adam ,   London   (12.23.18)
12. NOV 2018 Goldman Sachs Research: Longest expansion !!!!
Avram Goldsmith ,   Toronto -Kiriat Gat   (12.23.18)
Mr. Plocker : Economy and idheology are not compatible

Put two together as Stock Market doesn't reflect economical situation :

1.Analysts and expert market commentators are quick to offer reasonable explanations. "Technology stocks were too inflated and so the correction was inevitable," they say. "Markets decline as expected following a rise in interest rates," they add. "Sales and revenue estimates are modest because growth is at its peak," they further explain.

2.US economic growth is expected to slow from 2.9% to 2.5% in 2019 due to tighter financial conditions and a fading fiscal stimulus, according to Goldman Sachs Research. The forecast also calls for multiple rate hikes as the Fed looks to keep the economy from overheating amid rising inflation and unemployment on a downward trajectory towards 3% by early 2020. For now, neither overheating nor financial imbalances — the classic causes of recessions— appear worrisome, raising the likelihood that the economic
expansion remains on track to become the longest in US history in 2019.

13. The Federal Reserve must be audited and then abolished.
Rivkah   (12.24.18)
Time to stop the Central Bank robbers who have destroyed the American economy more than any other factor.
14. I have food and clothes and shelter. That is more than the
Rivkah   (12.24.18)
Holy Scriptures promises. I even have kitties and can afford to feed them. Economy is doing okay from my perspective.
15. Not Really
Lee ,   LA   (12.24.18)
The economy is fine. The stock market sucks. The stock market will be back on track, perhaps not for a while as it sorts out the tarriffs, interest rates and falling oil prices. There is nothing here to ruin the economy. Tesla is selling 5 to 7 thousand cars per week. That is taking gallons off the road. Semi trucks are on the way. Oil is not dead. The military needs it. The 3rd world is burning coal and with it there are going to quatum changes in the economy. Trump can not be either praised or blamed. It's just going to come.
16. Fake News
Jerry ,   Tel Aviv   (12.24.18)
The Fed kept interest rates low for 8 years. The new Fed chairman is clearly out to get Trump. Any fool knows that the quickest way to slow down the markets is to raise rates. Of course the last raise was unnecessary. But it achieved it's purpose. Make Trump look bad. The lefties have thrown everything including the kitchen sink at Trump. Nothing worked. So they paid off the Fe

17. Qanon warned of tds in the federal reserve
18. Trump didn't do it
Ronnie Bell ,   Australia   (12.26.18)
The financial mess America is in started when gold no longer backed the dollar. Endless wars, No victories. $21 TRILLION missing in the Pentagon. Out of control fraud and greed....by all American. Corrupt Congress. And you write this silly artical saying it's all Trumps Fault ! Journalism is dead dead. It's all personal hate opinion now. Is ynet owned by CNN or Wall St. ?
19. fake news
marco ruffini ,   roma   (12.26.18)
how is it collapsing when all the fundamental economic indicators are the best in 25 years ?? unemployment lowest ever, gdp at 3.5% for several consectve quarters, corprate earnigs up, etc... yo are popagating fake news ! the ly problemis the stock market respnding to three raises in interest rates from a fed director determined to sabotage the eonomy
20. Trump's financial house just got restored. Go figure.
leo ,   usa   (12.27.18)
21. Plocker needs to learn kindergarten economics 101...
Chaim ,   Israel   (12.27.18)
Trump doesn't control interest rates. The Fed does. The Fed has raised interest rates FOUR times since Trump's presidency began less than three years ago. They only raised rates once during the eight years of Obama's disastrous presidency.

High interest rates slow the economy, and bring down the stock market. That is kindergarten economics 101. Not surprisingly, Plocker doesn't know that. It is a disgrace that a brilliant nation, like our precious Israel, tolerates such miserable excuses for journalists.
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