Folks, interest rates are going up which means that the cost of money will be higher

[Yavin4]

That's why we're seeing this sell off. We've had 0% interest rates from 2008 to about 2015-16 or so. We're still at a rate that historically would be seen as a"stimulus" level rate. Given declining unemployment, there's no reason to keep rates low.

So, there's a market correction to the new reality.

[Yonnie3]

1. I saw a republican on TV arguing that raising interest rates would hurt the economy badly.

I can't say who or what network as I had just entered the room, heard this, said bull crap, and turned the chatter box off.

I think many here know that the market moves for such reasons. It sure is nice to point out how bad it's doing lately since tRump claimed it was his doing when it went up. I wonder if he will blame the Democrats who didn't clap at the SOTU speech. He just said they were un-American and treasonous today.

[Wellstone ruled]

2. As they say,higher rates were baked into the cake

last year. Something one needs to remember is,Democrats for the most part are Work a day people,Republicans pride themselves for staying home and Clipping their Bond Coupons and sipping Champaign .

[Wwcd]

3. + a million.

Precisely, Wellstone ruled

"Clipping their Bond Coupons"

[Yonnie3]

5. My Republican neighbors pride themselves on staying home and waiting for a SNAP refill

and their disability payment.

No bond coupons in the neighborhood.

[Wellstone ruled]

6. Yah,same here,

and one the first of the month,their EBT Cards are refilled. We try to do our Grocery Shopping at least a day before or a week after . These same so called Conservatives are just bitching cause all those Brown Skinned peoples are jamming up their Grocery Aisles and messing up their Parking lots,cause they have to park way away from the front door.


They sure do like those gumberment checks each month.

[Hoyt]

4. I agree. I bet my rear that within a day or two, trump will be blaming "unstainable low interest

rates" on Obama who really did dig us out of a tough recession despite GOPer obstruction.

I wish the market downturn were something we could legitimately pin on trump, but it's really not and I think we do ourselves a disservice trying to do so. When the market goes back up, I'm sure not going to attribute it to trump.

Now, the long-term impact of tax cuts, trade wars, walking away from trade pacts, destroying foreign relations, racism, all but ending ACA, and probably worse, can be blamed on trump.

[Quixote1818]

7. Lowering taxes when you already have almost full employment is what causes this

Snip>


Does cutting taxes lead to inflation?


Cutting Income Tax

Reducing income tax will increase disposable income of consumers. Therefore consumer spending and AD will increase. This could cause inflation, if the economy is already quite close to full capacity.

http://econ.economicshelp.org/2007/10/does-cutting-taxes-cause-inflation.html

We didn't need this tax cut right now. Trump was trying to fix something that wasn't broken.