Various economic indicators have been quietly telling us for months that Donald Trump’s bad policies were putting a damper on the booming Obama economy. On Friday the stock market, which is usually the last indicator to get the hint, plunged by a symbolically ominous 666 points. Today things got even worse, as the Dow Jones closed down by another 1175 points. Seven percent of the stock market has vanished in two days. It’s confirmation that the economy is indeed on edge, and it’s also a strong signal that smart money is now betting against Trump surviving this.
The stock market despises instability more than anything else. Investors have been willing to look past Trump’s political instability and mental instability for the past year, in the hope that there was still more to be milked out of the Obama economy. But this two-day plunge is a sign that investors have had enough. Financially savvy investors know that Trump’s tax scam for the wealthy is about to have a terrible impact on he economy, and politically savvy investors know that everything is about to hit the wall for Trump.
Trump took his last best shot at fending off his Russia scandal on Friday when he released a classified, misleading, and criminally obstructive memo from Devin Nunes. The public quickly rejected the memo for its idiocy. This means that Trump has no real defenses left when it comes to his upcoming no-win choice between testifying for Robert Mueller and pleading the Fifth Amendment. Either one would cement his eventual demise.
On a point basis if not on a percentage basis, today marked the biggest single-day drop in the history of the Dow Jones Industrial Average. The past two days have left the market in negative territory for the year. The biggest plunge happened today while Donald Trump was bragging about his tax scam during a speech.
Bill Palmer is the publisher of the political news outlet Palmer Report