G-d I hate defending that Putz Obama, but just trying to keep it real . These are annual figures vs QTRLY numbers where even Obozo was able to see 4 QTRS during his tenure over 4%
I
want to repeat, Obama was able to sail along with the wind at his back . The economy grew despite every effort on his part to destroy because the Fed ( Yellen and Bernake) had his back . Maintaining a zero interest rate policy ( emergency measures of course ) and pumping in 3.5 trillion dollars of liquidity kept the economy and markets afloat on a massive dose of heroin
Tr
ump is trying to sail with the wind in his face , and its starting to feel like hurricane conditions are forecast . Not only are rates rising but liquidity is being drained from the system . Tax cuts are great ( the income tax rate should be zero, and the IRS shut down for good) , but without spending cuts, are deficits are going to be close to a trillion, and will be 2-3 trillion if we see a real slowdown.
My guess is this the high GDP report Trump will see, as we saw pulling demand forward because of the tariffs ( soybean exports in particular,) and then the effect of these rate hikes and liquidity draw downs start to take kick in
Just look at how the market reacted to the report, which by the way, was below expectations ( hard to believe we could come in with a lower reality when Trump says we have the greatest economy of all time
If it drove stocks prices up, home prices up, and manipulated bond yields lower, what happens when you reverse course ????
New Home Sales Tumble To 8-Month Lows Despite Price Plunge
Despite a plunge in median new home prices to their lowest since Feb 2017, and the most new homes for sale since March 2009, new home sales tumbled 5.3% MoM in June to the weakest since October 2017...
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[FONT=lucida_granderegular]Existing Home Sales Suffer Worst Losing Streak Since 2014, Price Hits Record High
"This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales..."
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If it all goes to shit on Trumps watch, because of the Fed, exploding deficts, and a stock market collapse, G-d help us all
Next POTUS