Americans buying just “stuff”, pickups, and SUVs
By Jeff Koopersmith, Editor Emeritus
WASHINGTON DC – Friday, 2nd AUGUST 2019: Could it be Black Friday – Maybe, maybe not. The Dow is down more than 300 adding to the 600 it lost in the past couple of days.
It is wrong to use tried and true notions for way overbought markets and pressure on the Fed to see coming failure.
If you think tariff wars can cause this – you are silly. Tariffs really do not matter unless the tariff is huge. It’s what wholesalers and retailers do with tariffs. They often double or triple them as if they are paying those tariffs – thus driving prices even higher – but really not high enough to stop the middle class from buying “stuff” although they have put on the brakes by now.
The economy, in general, is flagging – lower that the “2% rise” in GDP. Trump will sign a [MINUS] 4.1 trillion dollar 2-year budget which will really shake Europe and America. I heard a prominent newscaster last evening calling it a 41 Trillion dollar addition to the debt – that’s how nutty finance drives us.
What’s next? I think the Fed will be forced into lowering rates to keep us from stopping our outrageous use of credit; “Cards & Cars” I call it.Really? Is it smart to by a loosely made Jeep super SUV for $75- 90 thousand dollars when a good Rover costs less. How about $45,000 handbag at Hermes that aren’t worth $450, thus keeping the rich looking richer- the rest of us buying their used clothes when once they gave them to the poor.
The world has gone mad. The Fed will soon turn to Gold- push it down and then pump it up higher and higher to balance their sheets. Then “recession begins” – phony data, robots smarter than traders, and lies aplenty. No one can hide from drivel.