"The central doctrine of Christianity, then, is not that God is a bastard. It is, in the words of the late Dominican theologian Herbert McCabe, that if you don’t love you’re dead, and if you do, they’ll kill you."--Terry Eagleton

"...doesn't philosophy amount to the sum of all thinkable and unthinkable errors, ceaselessly repeated?"--Jean-Luc Marion

“The opposite of poverty is not wealth; the opposite of poverty is justice."--Bryan Stevenson

Sunday, January 07, 2018

Loose Tweets Sink Truths

Apparently Wall Street created another $1 trillion in value since Friday (which is truly amazing since it's been closed all weekend):

I went looking for the source of these numbers.  Stuart Varney claimed Trump had created $4 trillion in value as of July 20th:

Look at this: since his election win, the Trump rally has added $4.1 trillion to the nation's wealth. Anyone with a 401k, an IRA, college savings, retirement savings, mutual funds. Anyone with a dime in the market has taken a piece of that $4 trillion.

You'll note there's absolutely no basis for that claim, making it a perfectly Trumpian exclamation.  No citation to statistics, a source, a reason for the calculation, nothing.  Media Matters tells me the claim is based on the Wilshire Index, one of many that has shown stock value rising since 2009, a rise that continued into 2017.  What Trump didn't do, was stop it.  Well, no surprise there.

To put that in perspective, though, the Wilshire Index showed a gain of $2.2 trillion from November 8, 2016, to January 26, 2017.  However, by March 6, 6 weeks later, the gain was $3 trillion since the same November date.  By November 8, 2017, it was $5.4 trillion. 

Greg Valliere, chief global strategist at Horizon Investments, says outgoing Federal Reserve chair Janet Yellen deserves “much of the credit” because the Fed’s policy of low interest rates has helped maintain a good economy and “favors stocks over other investments.”
Which is interesting because Trump replaced Yellen, and because the Fed has been favoring stocks over other investments.  And, of course, despite the Wilshire Index and the daily reports on the DJIA, stock market reports are not considered leading economic indicators.

But I digress....

So where does the "$7 trillion" number come from?  Trump's gift for exaggeration, obviously, as the market was closed between those two tweets.  Where did the $6 trillion number come from?  Wishful thinking perhaps, though it's not beyond the realm of possibility the total market value has risen by $0.6 trillion since early November.

The President lies so regularly you can't really trust him to tell you his own name.


Blogger The Thought Criminal said...

Wow, if trickle-down were valid, the money trickling down to the bottom would be more like a deluge, which it isn't. Trickle-down is an illusion, though sucking up everything from the bottom is as real as the legal system lets it be. And it has and does.

4:51 AM  

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