Readers React: Stock market volatility is another sign of troubled economic times ahead
To the editor: The market isn’t a barometer, it’s a forecaster. (“Dow dives more than 1,000 points despite attempts by Fed to calm investors,” Feb. 8, and “Whiplash hits Wall Street again; stocks end the day up,” Feb. 9)
Business bottom lines are good, but the U.S. bottom line is bad. In the eight years under President Obama, the Federal Reserve was in lockstep with administration financial policy with the goal of economic recovery.
We are no longer in recovery mode. The economy is strong, but instead of using our economic strength to reduce the deficit, the Trump administration chose a massive tax cut that most assuredly will increase the deficit. No longer in lockstep, the Fed slightly increased interest rates.
Raising interest rates raises the government’s costs, thus increasing the deficit. Ultimately, this weakens the dollar, increases inflation, destroys growth and sends the economy into a tailspin.
The market is reacting to fundamentals that are not good.
Michael Solomon, Canoga Park
To the editor: For months we’ve been treated (or should I say tweeted) to presidential proclamations taking credit for the tremendous rise in stock prices. Lately though, we hear nothing from Trump.
It is surprising that he hasn’t yet laid the blame for recent stock market volatility on treasonous Democrats. So I will help him: Shame on you, “Sell-off Schumer” and “Price-drop Pelosi.”
Jon Merritt, Los Angeles
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