On Monday, Tuesday and Wednesday of this week the DJIA dropped approximately 2000 points. Wall Street, the financial networks and Trump's ditto heads blamed it on the coronavirus, but don't take that excuse too serious. The real cause lays squarely with an overpriced market brought about by the Trump-GOP tax cuts. Corporate America and the wealthy used those tax savings to buy back stock in the companies they operate which automatically ran up the per share price. And Trump himself has made statements unbecoming a President that helped stocks to go even higher. When 2% of the top 100% own 90% of all stocks and bonds, manipulation can take place any time. And many of those who used their tax savings to buy back their shares have already sold those shares with a great profit.
Then you have the Trump economy that has underperformed the Obama economy, especially in creating new jobs. The federal deficit continues to rise under Trump as it always does under republican administrations. The latest reports say income inequality is at its highest level ever. Unemployment during Obama's last three years in office decreased 1.9%. In Trump's first three years in office unemployment has decreased 1.1%. The GDP is still much less than 3% growth per year.
CNBC's financial news and their hosts were wrong on what the Reagan, Bush and Trump tax cuts would produce and they are still trying to sell that failed story. Its three strikes and you are out. They have added a new claim lately saying if Sanders is elected President the stock market would be in grave trouble. So the next time you hear the coronavirus being blamed for a down DJIA, just laugh it off as fake news which is so much in style by the impeached President and his ditto heads.
This commentary written by Joe Lorio
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