Something May Have Finally Caught the Attention of the Markets!
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Something May Have Finally Caught the Attention of the Markets!

Anyone watching the spectacular rise in the Dow would think that America is on a tear and that everything if just fine. Anyone, however, objectively looking and listening to Donald Trump and watching the ridiculous doings in the Congress would surely predict a huge drop in all financial markets – and not one drop, but a sustained and serious decline lasting for an extended period of time.

But that is not what has been happening. It seems, ever since the election of Donald Trump, that the markets separated from reality and simply celebrated (without ever pausing or looking back) the defeat, first, of Hillary Clinton and, second, of the end to a polity intent of taxing and restricting companies and those in the markets.

But, that’s plain stupid! Markets and market-makers do not exist in a vacuum and are certainly not immune to immediate and ever more abnormal social, political and economic threats in the United States and beyond. But, stupid though it may be, that is what has been going on for the last nine months.

Not only have markets been divorced from reality, they have operated as though things have always been wonderful and care free. Amazingly, they not only totally ignore the huge threats –internal and external – we face today, but they seem to have serious amnesia when it comes to the near cataclysmic depression we faced in early 2009, just eight years ago!

It’s as though all adult, sane people have been put away or sent to some distant planet. The silence of those who remember how close we came to total disaster in 2009 and how insane things are today nationally and globally under Trump can suggest nothing else but that we are going to be forced to repeat history.

That said, there seems some small possibility that people will wake up before it all comes tumbling down. The recent confrontation between North Korea and the U.S., both led by unstable leaders, may be catching the attention of the markets. At least there has been some indication of that in the last couple of days. If this turns out to be the case, then something good will come out of this potentially disastrous situation. Stay tuned.

Daniel Socolow
Daniel Socolow: President, Socolow Group. Former Director of the MacArthur Fellows Program, President of the American University of Paris, Vice President of Spelman College. BA, MA, Ph.D.

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