I’m not going to watch the State of His Mind speech. Instead, I’ll listen to this.
Tonight he will of course tout the roaring economy. Obama took over when the economy was truly on the brink of catastrophe, and GM was about to go under. When he left, the economy was in relatively good shape, despite Republicans refusing to provide enough fiscal stimulus money in Obama’s first term, leaving the Fed to take up the slack with monetary policy. Trump insisted that the economy was a disaster a year ago at his inauguration, but now it’s doing great of course, and he’s taking credit in his always immodest manner. What a loser.
The result of interest rates being held so artificially low is that the only way to make money is to put it in Wall Street. Investments have inherent risks and are not insured savings! If there is another financial crisis, the Fed doesn’t have any leverage left, and with taxes being cut so steeply there won’t be any money for the government to spend. Worse, individuals and retirement funds stand to lose as much of their worth as they did in 2008. This is one of those formulas for disaster, so we’d all better hope things stay as they are and there isn’t another crisis!