Stock Market – Reacting or Leading – Up Good – Down Bad
Life has become a bit grim all of a sudden. I can’t leave my house because I loved to smoke cigarettes and now I am in a COVID-19 high risk group. High risk means this could be it. Curtains. Bye-bye. The wheel of chance may have chosen the nature of my demise. And, to add insult to injury, my pension is in the stock market which is falling; falling like a rock, and I see no good news on the horizon to lift it up.
The stock market seems to be ordering the President around. When the market likes what he says he will do, the market rises a bit. When the President doesn’t do what he says, or when he changes his plan, the market reacts. The market seemed to like that people would get checks. But I haven’t heard much about that lately. Stock buyers seemed to like the first iteration of the ever-changing stimulus plan. Today the market started up a bit but by the end of the day, with nothing accomplished, the numbers sagged once again.
We have heard that testing is great and that anyone who needs to can get tested. That is not what I see happening in my city. Every day we hear governors plead for masks, and protective gear for medical staff and doctors; ventilators are on the way supposedly, but we see that this is just hot air and you can’t make concrete objects from hot air. After an entire week which seems like a lifetime no one had received masks, face shields, gowns and these should be the simple things. Don’t you think people who own stock would perk up a bit if they knew that these items which keep doctors and staff from getting sick were being received. Mr. President, can you hear that, get hospitals the protective gear they need and the stock market might tick up. The President says that the Federal government isn’t a fulfillment center, but through emergency powers and FEMA, it is.
Talk about creating temporary hospital space with the help of the Army Corps of Engineers sounded smart. It sounds like states are getting some practical advice from the Corps of Engineers, but they are not actually building facilities, just helping officials find premises that might work, and so far not many spaces are up and running. Having the beds experts predict will be needed would also boost that stock market just a bit.
Congress cannot agree on a stimulus plan. Republicans want to bail out business big and small, and although businesses have already been bailed out and had giant tax cuts, the stock market seems to like this plan. Democrats want to bail out workers. I’m not sure how the markets are reacting to this, but since stock markets must answer to stock holders I’m pretty sure that if the Republicans get their way stocks will rise again. With a president who keeps saying that things have been “beautifully” completed when we can see that this is a “huge” exaggeration the kind of stability that keeps the stock market calm is absent. I used to believe that 45 would kill democracy, now I think he might end up killing me and many others. He did not cause the virus, but he is not the calm rational presence we need.
FEMA is now in the picture and is supposed to help the states focus on local needs. But the stock market ended down despite this new wrinkle. Have all Presidents pegged their policy decisions so closely to the gyrations of the stock market? Clearly in this case the stock market wants what the stock market wants. Meanwhile I am trying to act like I will survive. I will grow tomatoes. I will be able to walk around a store again soon. To hedge my bets, however, I am trying to decide what will happen to me if I lose my income and my house. Thank goodness I discovered Led Zeppelin performing Traveling in Kashmir. So great. Now when things get dreary I go to Kashmir.
Photo credit: From a Google Image Search – Daily Express