Ron Paul and Daniel McAdams discuss Coronavirus and Patriot Act suspension with Congressman Thomas Massie.
And discuss coronavirus and the market crash: the mother of all (man-made) crises:
So the stock market fell a little bit yesterday, the Dow went down about 831 points, and some people are panicking. No, I don’t think it’s anything like in 2008, it’s just a “correction.” And I don’t think that it has anything to do with the Fed raising interest rates. Some analysts are saying it’s being caused by the tech sector. I don’t think it’s anything to worry about.
There was a worse downturn in February. At that time I wrote,
Following last Friday’s big 665.75 point decline, Dow Jones Industrial Average then plummeted another 1175 points yesterday. At the opening bell this morning it fell another 600 points but is already up 30 points as I’m writing this. I don’t expect this decline to be an indication of a repeat of 2008. It’s just going through some adjustments, that’s all. Nothing to worry about.
For what it’s worth, 2015 was the worst year since 2008, up to December 2015. In July 2015, the DJIA was at 17,568, in August it went down to 15,781, in November back up to 17,910, in January 2016 back down to 15,944, and in April 2016 back up to 17,900 and it has continued to mainly go up since then. You can look at any number of interactive charts to see the numbers over these recent years.
But what’s going on now? Some say it’s technological issues, although there are other factors. I don’t know if Donald Trump’s State of the Onion last week had anything to do with it, or the release on Friday of the Republican FISA memo.
But it is clear that the Trump tax cuts, without any significant cuts in government spending, will have a variety of effects on things. The government is completely out of control, spending like drunken sailors, and Donald Trump is clueless about that. And the Federal Reserve also plays a role.
Today’s Dow is going up and down, very negative, then in the positive territory, and negative again. It could get worse over the next week, like in February. Besides the tech stocks I think that people are “concerned” over Donald Trump’s trade idiocy. His intrusions into the American people’s economic and trade matters are what could cause a further downturn.
The problem with protectionists like the economic ignoramus egomaniac Donald Trump is that they are control freaks who just don’t want to let people be free to do what they want. Just let the consumers buy whatever they want, from wherever and whomever they want, and let producers buy whatever capital goods they need and from wherever and from whomever they want. It’s called freedom, Donald. And prosperity, as well. More freedom has led to more prosperity throughout history, no?
When the government intrudes and imposes the wants and desires of control-freak bureaucrats like Trump and his cohorts and cronies, such intrusions cause distortions in the markets, price distortions and even higher unemployment as well, in the long run. And of course Wall Street will react to the monkey wrench the Control-Freak-in-Chief is throwing into what could have been a stronger economy.