There was a 2,000 point dip in the stock market (yeah, that’s a fun dip, innit) earlier this week. President Trump was quick to step forward with his insights.
“I think the financial markets are very upset when they look at the Democrat candidates standing on that stage, making fools out of themselves, and they say, ‘If we ever have a president like this,’” Trump said, referring to the most recent Democratic presidential debate held in South Carolina. “When they look at the statements made by the people standing behind those podiums, I think that has a huge effect.”
Trump made those comments on Wednesday, Feb. 26, 2020. The Democratic debate was the previous night. As others pointed out, the stock market posted their losses and closed on Monday and Tuesday before the debate.
Let’s ignore that the debate happened after the losses. Trump seems to have a poor view of people trading on the stock exchange. He’s essentially suggesting that they’re so ignorant and weak-willed that a debate between the Democratic candidates to be POTUS would worry those traders and send stocks plunging.
The second aspect of it is that he’s discounting his own ability to affect the stock market. He’s in charge, but he thinks this debate between candidates to be the nominee has greater influence than him.
Wow. Talk about a lack of confidence, and high levels of desperation.
What most analysts (and non-analysts) believe is that the spreading coronavirus is affecting supply chains, travel, and productivity. They worry that a spreading virus (here’s a nifty site where you can track it) and the threat of greater quarantines and less travel will affect companies’ profitability. They base this on companies like Apple and Pepsico already warning that the coronavirus is negatively affecting their earnings, that they’re playing soccer games in empty stadiums in Italy, that the 2020 Olympics in Tokyo is in danger of being cancelled, and that Delta Airline slashed flights to and from South Korea this week. With travel down, tourism will drop. So will consumer spending. It’s all connected.
President Trump doesn’t believe any of that, of course. He’d rather escape responsibility for anything bad that happens while he’s POTUS. So much easier to blame others.
It doesn’t bode well for the future, does it?