CEA Chairman Kevin Hassett Discusses Disconnect Between Wall Street and Main Street…

The investment instruments created by Wall Street billionaire hedgefund managers and institutional multinational banking interests; operated by robotic algorithmic data networks, while programmed to twitch and flitter with coded signals only decipherable by the hired engineers; are wildly swinging amid their detachment from Main Street.

This fluctuating Wall Street process is likely to continue; actually, it’s going to get a hell of a lot worse; because the invisible data driving the activity behind the swings is based on investment bets, derivatives that are entirely disconnected from actual Main Street financial results.  Chairman Hassett discusses:

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Full Spectrum: “The Main Street-Wall Street demarcation has been fortuitously blurred, all to Wall Street’s benefit. Recall the mass migration over the last few decades from defined pension plans to self-directed IRAs and 401ks. This was Wall Street impregnating Main Street with Wall Street’s sweatless ethics. Main Street is very much ‘in the market’. Trumponomics desperately needs a tutorial to the American people explaining the rockiness of the transition and all that’s at stake.”…

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107 Responses to CEA Chairman Kevin Hassett Discusses Disconnect Between Wall Street and Main Street…

  1. Thanks for keeping us up to date on MAGA-nomics. With the constant s**t show that is national politics, it’s often hard for all of us to remember just how much great work our President Trump is doing against all odds and almost single-handedly.

    I know that it is often hard for political junkies like myself to tear away from the “red meat” of Spygate and assorted other debacles, but I really do need to understand what the hell is going on with my puny IRA investment that’s getting whipsawed all over the place by these damn algorithms and robots.

    We’ve seen what the Masters of the Google/FB/Amazon Universe can do to us via commerce and information. The Rulers of Wall Street have the same demonic tools and using them every way they can to take down our President without completely destroying the Economy along the way.

    What scares me is that they have become so desperate and reckless. They are capable of doing anything to save their MONEY and POWER.

    #GOD HELP US ALL

    Liked by 34 people

    • CountryDoc says:

      There is a similar Big Money/Big Data Gorilla controlling the US healthcare system. They are controlling healthcare portion of the economy- about 4 trillion. They are futher making a total shift of power of the flow of money from main street (small private health care practices and companies) to profit centers who get their money and maximize their profit by minimizing the cost of care (in the name of quality).

      Liked by 17 people

    • Dutchman says:

      Seneca;
      I too was a political junkie, seeing EVERYTHING thru the prism of POLITICS.
      After following Sundances coarse, here at CTH, I now ‘see the light’; politics is economics, and economics is trade.

      The politics in d.c. is a sh*tshow, yes, but its,also a sideshow! The REAL, consequential show is whats goung on with Main Street vs. Wall Street, and Sundances,articles spell it out.

      Once you undetstand Maganomics, you’ll undetstand why those who oppose DJT, oppose him.

      It makes it all make sense. For awhile after I came to the treehouse, I skimmed over the,articles on maganomics, and focused on the POLITICAL articles, the intrigue, the soft coup and insurance policy,…

      Which is like ordering a sundae, and only eating the cherry on top.

      Liked by 4 people

      • sat0422 says:

        1, I have always hated that company retirement for the masses went away. It never made sense until Wall Street has been exposed as “tinkering” with the markets.
        2. I remember when 401K were sold as a way to supplement your retirement from your job.
        3. I remember when Congress supported the abolishment of company retirement plans and instead urged workers to invest more heavily in the 401K programs. Limited choices, limited withdrawal without penalties. Ah….., but now we all know why.
        4. Another ploy to bring $$$$$$ into the Stock Market and yet, the worker bees are always at risk of losing everything. I think about the teachings of F.A. Hayek everyday.

        Just yesterday, we watched a narrative about the Robber Barons and the Industrial Revolution. At least back then, they went to trial and were exposed. I suppose the Facebook, Amazon and Google e.t al., enterprises aren’t much different, except they operate with approval today. Buyer Beware.

        Liked by 2 people

        • sat0422 says:

          I mean to say in #3, 401K withdrawals with penalties.
          I will add that the Stock Market isn’t what it used to be; Democrats have become the party of Communism, and the Republicans are stunned that they have been caught sleeping with the enemy.

          Liked by 2 people

        • Texican says:

          I’m fine with being responsible for my own retirement via 401k, IRA and real estate investments. (I don’t even count the rounding error of Social Security. It’ll be beer money.)
          It makes no sense for a company, and particularly for a government, to be on the hook for costs incurred by people they no longer employ. But I would love to see a healthy dose of deregulation to allow us to select our own investments instead of the hand-chosen few in our company sponsored plans.

          Liked by 1 person

      • Dutch- very good analogy. If regular Politics is a sideshow, than our President Trump is the greatest Ringmaster ever!

        Liked by 1 person

      • Phil Free says:

        Sundance’s *course (not coarse 😉 )

        Like

      • Pyrthroes says:

        Since the mid-1970s, academics and traders alike have noted Anglo-sphere/European and Japan’s transition to a complex/virtual Information rather than material/physical Market Economy, one in which exchange-transactions of goods and services play second fiddle to macro-statistical “quant model” patterns amenable to manipulation by transnational corporate entities numbering no more than several dozen at the most.

        Sundance/CTH has dealt extensively with this, emphasizing the discrepancy between Adam Smith’s “comparative advantage” vs. global consortia’s thin-gruel price manipulation divorcing demand from supply in order to rake off stable premiums absent any exposure to free-market entrepreneurial risk/reward.

        No wonder Enarque elitists, Globulists (sic), flock together with collectivist/Statist kleptarchies of all stripes, while perpetually-incumbent politicians relentlessly press self-dealing dirigiste initiatives of one-size-fits-all. Like “capitalism” itself, this is not a codified doctrine illuminating “malefactors of great wealth” (TR) but a behavioral tropism reflecting a second-generation rentier mentality seeking solely to perpetuate its risk-free caste-and-class status quo regardless of socio-cultural/political-economic consequences.

        Right and Left, whole spectra of contemporary “status anxiety” actors sense this tendency, seeking to join what they can’t lick. As a second-generation outsider, Pres. Trump is “in this but not of it”. By some miracle, this independent, patriotic, sagacious man-of-action sides with the people to free his country from its wretched partisans’ divisive, exploitative yoke.

        Like

    • dbobway says:

      Amen Seneca,
      Wallstreet has been acting this way as long as I could pay attention.
      I have been telling my friends and family this forever. But I’m a self-employed carpenter,
      allergic to my public education, and an out-rite enemy to established political America.

      We are dealing with people who will let their family, friends and fellow citizens fall on the sword for a flawed ideology. An ideology where human life isn’t the top priority to the arrogant immoral socialist intellect.

      Other peoples pain,
      Is easy money’s gain.

      Think about it!
      Fox news is losing viewers by the millions and they don’t care.
      A little boy may have died on his Father’s watch, for the need to have his way.
      High tech, Low-tech to me, is hand cuffing the casual voter with lies and deception.

      Today, our only defense is our President and 65 million Americans who have virtue and moral clarity against a group who would chose genocide to get their world.
      Our firewall is 30 million armed citizens who won’t back down.

      That firewall needs to be moved ‘up’ to a civilized solution.
      We need to get out our message out, but our message is being blocked.

      I’m tired of waking up with a thought, ‘I may have to defend my country against a rogue government of criminal carpetbaggers.’

      These evil miscreants need to know ‘they won’t win’, no matter what evil they dream up, they ‘won’t’ win. But the road of evil continues at a autobahn pace.. The faster it goes and the farther it travels, the more human beings will suffer.

      We need a plan to slow down that train to hell.

      Liked by 4 people

    • Orville R. Bacher says:

      1 Amazon peaked at 270 Price-to-Earnings (P/E). To pay $270 for $1 of profit is the stuff of fairy tales. Today at around 90/1 PE, a Catalog business with a mouse is still overvalued. Wall Street is no longer a Capital Generator, it is now a Capital Destroyer.
      2.Letting businesses buy back their own shares is long term poison. Rather than executives investing in their businesses, the tax code lets business incur debt solely to boost Share prices, to make the executives rich. Destruction of Capital.

      Liked by 1 person

    • The simplest solution to ending rapid-fire algorithmic trading is to place a $0.0001 tax on all trades. If that doesn’t work, continue to raise the tax until volatility declines to acceptable levels. Most ordinary people would not notice any significant impact on their portfolios. The ‘algo trade’ cannot turn a profit with a tax even this small.

      The 401k/IRA system was designed to force ordinary people to care about Wall even though most of their real investments are in their jobs and their houses. It also increased the ‘buy’ side of stocks and punched up the value of the market. ‘Individual investors’ are an incredibly small number of participants in the market. 95%+ of all stocks are controlled by 5% of market participants, so-called ‘institutional investors’ including those companies that ‘manage’ 401k programs.

      Liked by 3 people

    • Carrie2 says:

      Seneca, and karma is closing in on them. Trump has brought back a lot of economic changes to OUR advantage and never forget a previous president in the 1800’s closed down ALL banks, and also two presidents closed down the media, so there is hope! They know that the CEO/Boss of America is the president and this President is showing them up for what and who they are and they hating every darn bit of whatever he wants done, and somehow it does get done so they get madder.

      Liked by 1 person

  2. mr.piddles says:

    Love this description: “operated by robotic algorithmic data networks, while programmed to twitch and flitter with coded signals only decipherable by the hired engineers”

    Seems the talking head economy pundits have been picking on this over last several days. One of them provided cogent yet somewhat obvious insight: “We’re getting away from ‘investing’, and we’re moving toward ‘trading’.” Yup. Sounds about right.

    Wall Street… is officially… useless. At least for the Average Joe. And that includes Average Joe’s 401(k), too.

    Liked by 13 people

    • mr.piddles says:

      (*) Not only “pundits” but advisors and money managers.

      Liked by 6 people

    • Akindole says:

      Indeed. Add into that “old school” technical analyses (see everything that comes out of the mouths of talking financial heads) that were developed specifically to model the “investment” behavior of actual humans, and you’ve got a nightmare scenario because those humans are missing from the trade. The HFTs now scan the digital universe and trigger on keywords appearing everywhere. So, they fight each other in memory sticks in a nanosecond time frame for the bid and ask while they scoop up pennies on each trade by being physically closer to the exchange. It’s a lot of pennies being scooped real fast.

      And then there’s “Ramp Capitol” at about 3:30–did you see it today? They’re back. Get used to it as SD says.

      Go ahead and catch those falling knifes if you dare…

      Liked by 4 people

  3. Franklin says:

    The major problem is both public and private debt. The economy can not grow if everything is based on loans. Holiday sales may appear to be good but who benefited? Amazon and Walmart import a large percentage of their merchandise. Most of the cell phones and electronics are not made in the US. Consumers who bought their purchases on credit benefited the Wall Street banking cartels.

    The recent gains in the markets is apparently due to a 63 billion infusion from pension fund managers. Will this change the direction of the markets?

    Liked by 2 people

    • angellestaria6674 says:

      Your point about debt is not to be casually glossed over.

      Worlwide debt, nationally and individually, may very well be a hidden worm in the apple.

      The debt issue is extremely worrisome.

      Liked by 2 people

      • Orville R. Bacher says:

        1 Amazon peaked at 270 Price-to-Earnings (P/E). To pay $270 for $1 of profit is the stuff of fairy tales. Today at around 90/1 PE, a Catalog business with a mouse is still overvalued. Wall Street is no longer a Capital Generator, it is now a Capital Destroyer.
        2.Letting businesses buy back their own shares is long term poison. Rather than executives investing in their businesses, the tax code lets business incur debt solely to boost Share prices, to make the executives rich. Destruction of Capital.

        Liked by 1 person

    • You are correct. Private debt (both corporate and personal) is about twice the size of the National Debt.

      Like

  4. visage13 says:

    If you have a 401k or IRA, unless you are retired, you are in it for the long haul so I tend not to worry about these fluctuations in the market. The way I look at it is as long as I don’t lose principal, it’s all good.

    Liked by 3 people

    • barnabusduke says:

      If I may, I compare that to living in a tent while saving for a new home and hoping I don’t lose my tent. Though I am not retired, I had hoped to retire early and start my own business. Yes…Choices…Still ticks me off that 401’s are handled like a dealer at a craps table. I made that choice though, so I will deal with it.

      Like

      • OSP says:

        If you’re over 55, you can rollover your 401k into a self-directed IRA, and have full control over your investments

        Liked by 1 person

        • Joe2pt.0 says:

          I rolled over a 401k into a self-directed IRA when I changed jobs, changing jobs is the only way you can get at the 401k unless your employer offers in service withdrawals.
          My self-directed IRA formed an LLC and began investing in real estate. Annual returns hover at about 10% before appreciation. Also made a loan to purchase a small plane that has since been paid off with an 8% return.
          My motivation for going this way is to stay out of the stock market. Plus I don’t like my money in the ‘Cloud’ on a digital ledger that can be frozen or confiscated with a single keystroke.

          Liked by 1 person

    • Will Hunt says:

      If you are anywhere near retiring there is little logic or sense behind being in “the market”. Under the best conditions you may improve 5-7% annually and the downside (at least as likely) you’ll stay even or lose. Is the 5-7% really worth the stress?

      Liked by 1 person

  5. Is this the phase of the MAGAnomics where all the hedge funds and derivatives cash and burn while the American worker has a good paying job?

    What will the stock market look like in five years? Not so much where the Dow is at, but who will be the Strongest companies with solid value.

    Liked by 2 people

    • mr.piddles says:

      But the worker with the good paying job is left holding the bag anyway when their pension or 401(k) is wiped out the (inevitable) next time around. Joe Blow needs to be acutely aware of the need to be diversified at all times. Whether you’re an “investor” or not.

      Like

      • starfcker says:

        Learn to do what we used to call fundamental analysis of a company’s financials. EVERYBODY nowadays is doing what they call technical analysis. Looking at charts and trying to predict which way something will go. Which was always up as long as the fed put was in place. Look at some of the big hedge fund guys, Jim Chanos, David Einhorn, David Stockman, betting against Tesla. Clueless about the company’s fundamentals, which are rock solid. Investing blindly is going to be a fool’s game in the future. Do your homework. Learn if a company is making money. Learn how that company is making money, learn how that company plans to make money in the future.

        Liked by 3 people

        • TarsTarkas says:

          Tesla’s fundamentals are rock solid? You are aware that Tesla only stays afloat due to huge taxpayer-funded subsidies? Much of which he is spending elsewhere than on Tesla?

          Like

      • I simply assumed that the value in my 401k was the company’s match and put most everything into bonds in order to try to hang on to that knowing that inflation would inevitably eat away at it.

        Like

  6. zozz1 says:

    Main Street….MAGAnomics will win. The struggle may get scary; the ride may get bumpy; Main St. will win because if is real…Wall St is not real. …it has become a “construct” that, as SD has said, is operated by bettors, not by investors.

    Liked by 8 people

    • Judith says:

      Wall Street was comprised of artificially-inflated paper instruments to begin with. A correction was inevitable, with or without MAGAnomics.

      What POTUS has done is construct a parallel lifeline by way of Main Street. If we’re smart we will study this entirely new construction and reap its lasting rewards over the long haul.

      Liked by 6 people

  7. vikingmom says:

    Way back in the “old” days of Main Street, the companies that MADE good products were the ones who were able to sell stock in their companies…everyone knew what Boeing, Ford Motor Co, IBM and Microsoft did and they wanted to be an investor in a company that was well run and easily understood.

    But somewhere in the last 30-40 years, all of those products started being made overseas, for pennies on the dollar and Main Street was taken over by Wall Street, which consisted of “players” who were able to convince hedge fund managers and financial analysts to put their clients money into “intangible assets” and “derivatives” and “bundled investments” which was a fancy way of saying that there was no actual product or service tethered to the funds. But, as long as the markets kept climbing and the Fed kept printing money to keep the charade going, no one seemed to know or care that their retirement assets were simply floating along in a bubble…the crash in 2008 should have woken us up to the Ponzi scheme cooked up by investment bankers and encouraged by our very well compensated politicians and lobbyists but it didn’t. Barack Obama and his Harvard trained economists were profiting handsomely as well so they kept right on doing what was working for them, regardless of what it was doing to the country.

    Then, along comes Donald J Trump, who not only has the audacity to mention that the Emperor has no clothes but who actually understands how to get us back to a place where we can start rebuilding our economy on solid ground once again…THAT is really why they are trying to take him (and by extension, all of us) down.

    As Sundance has pointed out, there are TRILLIONS of dollars at stake…this is not really about ideology – it is really just about the money!

    Liked by 22 people

  8. Franklin says:

    The problem is not Wall Street but rather our Congressmen and women who think they know how to manage the economy and listen to lobbyists instead of their voters. We the voter need to insist on a balanced budget that includes substantial debt repayment. We need to end crony capital.

    Liked by 2 people

    • guyinworld says:

      this is like socialism at the moment..

      Like

    • Orville R. Bacher says:

      Crony Capitalism is the child of the Federal Reserve, a political construction- not even considered by the Founding Fathers.
      If interest rates were set by the “Free Market”, not by edict of the Money Kremlin (the Fed), then we would never have reached $20+ Trillion in debt, because no one would lend governments and Crony Capitalists their money at 0-1% annual interest.
      We have Socialism for the Rich and Connected, and Laizzez-Faire capitalism for the unconnected.

      Liked by 2 people

  9. evergreen says:

    I thought “equities” were shares of ownership in corporations. How can one acquire and release ownership, perhaps multiple times, in a fraction of a minute or second? Technically, due to software algorithms, it can be done from a transactional standpoint, but how exactly is it truly legal from an ownership standpoint? No principal or agent with discretion is involved. It defies any sense of purpose, as would have to be expressed long hand to, say, a judge or other third party. Who is going to stand and recite the conditional decision points buried in any given algorithm?

    I view it as betting, no different than Vegas. I think I could be ok with banning algorithmic trading on the major markets. If a human didn’t push a button or sign a form to execute a transaction, then it shouldn’t happen.

    Liked by 4 people

    • mr.piddles says:

      “fraction of a minute or second”

      Actually, they’re down to fractions of milliseconds. Yes, itty bitty tiny slices of time. Almost like they don’t exist. Like you’re money.

      Liked by 4 people

    • Linda Jean Burkett says:

      Not that I’m a huge fan, but Warren Buffet had the right idea about investing. The human element of research, watching and holding investments is gone. This computer trading needs to go. If the traders want to earn big bucks, make them do it the old fashioned way.

      Like

      • mr.piddles says:

        “Computer trading” is fine.

        You just need to require a human being on the floor side to physically hit the “Enter” key. :^p That’ll solve 80% of the current problem. Trader: “Uh, the computer wants me to do WHAT?!? Think I’ll pass on that.”

        Like

  10. Stillwater says:

    Important point about Main Street Economy @1:13 – “We’ve got a heck of a lot of momentum going into next year; and small business momentum you don’t see in markets because a lot of those firms aren’t publicly traded.”

    Liked by 6 people

    • VoteAllIncumbantsout says:

      I posted this earlier not realizing it was from 12/26/18 on here so here it is again regarding the former CEO of Walmart.

      There’s the rub…
      Even they are baffled by the Dow going down 600pts on Monday and up 1000pts yesterday.

      My comment yesterday told those who were listening that the next two days along with next week we’d see the Dow rise.

      When they can’t find a narrative they throw out confusion but as a trader, we see the numbers in the market because they never lie. So why did the market drop 600pts today only to go up and close higher than yesterday? When traders run out of buyers/longs, they flip and become sellers/Shorts and when they near a bottom they reverse position. This happens all day everyday. There is a proper method to trading and no, it’s not throwing darts.

      The media has no effect on pro traders, it’s a matter of what the price activities are telling us. If there is confidence we buy/long, no confidence we sell/short. Yes, novice traders trade on emotion and the media. This is reflected in the price. Pro traders trade on logic which alleviates that noise.

      Please understand that the media is there to confuse the American people and everyday, they do just that. It’s been this way for decades, they always tell you when to buy but never when to sell! That’s why they bring in CEO’s to encourage retail investors, Mom and Pop, to spend their hard earned money, when they do this, it’s always near a top so you get trapped holding the stock while it’s falling hoping it returns to at or near the price you paid for it. Traders know when the tops set in, that’s why the CEO’s are brought in, to sell you the top. Listen between the the talking points and you’ll start to hear it.

      Don’t get to excited just yet about the markets, if you trade or own stocks. Will we crash? No, but 2019 is beginning to show signs of weakness in the markets. Also, don’t get to excited about Wall Street going down because traders will make money on the way down.

      I’m proud of our President for what he’s trying to do, but as the POTUS, you should never tell someone that stocks are a great buy right now. Remember, PDJT is a real estate tycoon, he does not invest in the markets because he does not understand them from his own mouth.

      When markets fall back, what will these people think when it goes against them?

      Liked by 9 people

      • VoteAllIncumbantsout says:

        I then followed up with this…

        I want to clarify something here…
        When POTUS said “Great buy”, the very next day the Dow made historical highs, this was a Bull Trap, today was the shake out that triggered all the stops on the way down which intensified the selling pressure, when we reached the bottom and slowed up, the buyers took over and closed above yesterday’s high.

        For those novice traders who took that advice to heart a bought stocks, entered there stop loss positions, just lost money only to see it reverse and go back up while they held no more positions. This again, happens all day everyday!

        Liked by 5 people

        • VoteAllIncumbantsout says:

          My point?
          Regardless of what Kevin Hassett says, Pro Traders will adapt to the scenarios. Wall Street becomes Main Street in the end and just like the past, they will separate and Mom and Pop will get hammered again.

          Main Street is growing massively and so will Wall Street. So please beware the Cons that will be coming our way. Always look for the Traps and again listen between the pundits points. The signs are there when you know where to look.

          Liked by 6 people

          • OSP says:

            Good stuff, Vote

            Liked by 1 person

          • Stillwater says:

            I guess what I found to be interesting about Hassett’s statement was about small business momentum not being seen in the markets because the firms aren’t publicly trade. It didn’t occur to me about the statement being taken as investment advice to buy/buy/buy or sell/sell/sell. Just an interesting observation as we see stocks on Wall Street get hammered for whatever reason and Main Street surging and beginning make up a larger portion of the US economy and lifting US economy up despite Wall Street.

            Liked by 4 people

          • Bastiat says:

            A good explanation that fits my perception as a layman.

            I’ve always thought that if you did the opposite of what the pundits say, you would come out pretty well. This trap that you speak of seems pretty obvious to me. I see it happen all of the time and was victim to it in my early plays with the stock market.

            Today, I tend to buy and hold companies that I like, and look to get in when everyone is complaining about doomsday in the markets in general (not doomsday for the individual companies). I do pretty well with that strategy. Playing the markets like others do seems like gambling to me, and I loathe gambling because the odds are always stacked for the house.

            Like

        • Stillwater says:

          Yes, probable not the best idea to take investment advice from the news.

          However…
          Those novice traders traders wouldn’t suffer large losses to their account if they followed proper position sizing from the beginning. This should be the first thing every new trader learns before they allowed to even start looking at “strategies”.

          Novice traders especially should use a fixed % equity model for position sizing on each trade. Say 0.25%, 0.5% equity or maybe 1% max for each trade(percentage depends on the type of trader and how many trades placed per day… intra-day trader, day trader, swing trader, and other factors) They should have a preset max drawdown level for each trade, day, week and month. This way no one bad trade or series of trades for the day, week, or even month would wipe them out. Even with huge slippage or stop jumping the losses would still be manageable.

          Liked by 1 person

        • starfcker says:

          It’s called harvesting your money. The banks know there is a sucker born every minute

          Liked by 1 person

    • GB Bari says:

      That bodes well for owners and employees in those small businesses however it does nothing for pension plans and individual savings investments such as 401Ks, Roth IRA’s etc.

      We are taught from an early age to save. However, earning 0.5% to 1.5% on one’s savings account in a bank is a losing proposition in the current econmic environment.

      Even today where savings account and “money market” rates are approaching 2% on average, they still do not keep up with the annual inflation of the non-luxury and consummable items that we must continue to buy well into retirement – food, energy, clothing, shelter, communications, personal transportation, auto and homeowner or renter insurance, and healthcare insurance premiums and deductibles, co-pays, and other costs not covered by said insurance.

      I patiently await the effect of MAGA economic policies to bring the imbalances back into some sort of offsetting “balance”, and stabilize the situation.

      Liked by 2 people

      • Stillwater says:

        The transition from Wall Street to Main Street will be a bumpy ride indeed. People will be hurt. Hopefully that “offsetting balance” you mentioned will come into effect soon to reduce the cost of those consumables. Trump has already helped with his new legislation to start reducing drug prices so the US doesn’t continue to subsidize the rest of the world for their discounted prices.

        Liked by 4 people

      • Judith says:

        I could never trust those mega pension plans. When I read that the Paris Climate Accord was in fact funding some public pension accounts in California, it confirmed the many doubts I had about these pensions.

        I was automatically suspicious of all the 401k savings “incentives” and I never wanted to park my retirement into one big basket.

        These heavily promoted investments are like barrels filling up with water droplets in the water park. You know that when it gets nice and full it will suddenly tip over and spill out all its contents. These investments are globalist piggy banks.

        Liked by 1 person

  11. sundance says:

    Liked by 15 people

  12. fleporeblog says:

    Kevin knows the truth and is out telling these MORONS that next year’s Annual real GDP rate (2019) is going to be better than this year which will be close to 3.3%.

    Keep in mind that China 🇨🇳 stopped buying our soybeans and pork for the better part of 2018. The exact opposite is going to happen in 2019.

    Look how much of an effect it had on the 2nd Quarter when we trimmed the deficit by $53 billion dollars:

    No one is talking about the 3rd and final estimate for the third quarter real GDP rate that came out on Friday for two major reasons. It absolutely KILLS their talking points.

    You can find the report below:

    https://www.bea.gov/news/2018/gross-domestic-product-3rd-quarter-2018-third-estimate-corporate-profits-3rd-quarter-2018

    From the article linked above:

    1) PCE IS ANOTHER LOOK AT INFLATION USING A DIFFERENT LENSE THAN CPI

    The price index for gross domestic purchases increased 1.8% in the third quarter, compared with an increase of 2.4% in the second quarter (table 4). The PCE price index increased 1.6%, compared with an increase of 2.0%.

    Excluding food and energy prices, the PCE price index increased 1.6%, compared with an increase of 2.1%.

    2) THIS BELOW SHOWS YOU HOW MAIN STREET IS ABSOLUTELY KILLING IT! LOOK AT THE REAL DISPOSABLE INCOME:

    Real gross domestic income (GDI) increased 4.3% in the third quarter, compared with an increase of 0.9% in the second quarter.

    The average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, increased 3.8% in the third quarter, compared with an increase of 2.5% in the second quarter (table 1).

    Its not magic if you are willing to open your eyes to see the truth! It was starring them in their faces based on the report above.

    They also know that the ECONOMY will be the NUMBER 1 issue for voters when they select their candidate to be President in 2020.

    How the hell are the Democrats going to start debates in six months with a roaring economy. Good luck MORONS trying to convince Americans that you have the magic wand when they can see clearly that the current President has it and is using it to not only MAGA but KAG!

    Liked by 14 people

    • Building on your numbers, Flep, several “fundamentals” will drive GDP to new levels in 2019.

      As the KORUS and USMCA Trade Deals take root and new Trade Deals are negotiated, our $800 Billion in Trade Deficits will necessarily erode – particularly in China’s majority share, in order to prove-in-advance that they will Rebalance Trade.

      The quickest routes for Trading Partners to cut our Trade Deficits is buy our Exports or reduce their Exports to us in industries where the USA has “elastic” supply or is “nationally expanding” capacity:
      • Agriculture
      • Energy (Oil, LNG, Coal)
      • Aluminum and Steel
      • Automotive
      • Industrials related to Defense

      Each $100 Billion in reduced Trade Imports that is replaced by Domestic Production is no longer SUBTRACTED and is instead ADDED for a $200 Billion INCREASE in GDP. The $100 Billion in Domestic Production growth gets MULTIPLIED, say an additional SIX times as each stage of the Goods-and-Services Value Chain sells its needed output to the next stage (e.g., Mining Equipment, Ore and Coal Mining, Transport, Steelmaking, Steel Plant-Equipment-Service Suppliers, Transportation, Primary Metals Fabrication, Parts Producers, Assembly Plants, Dealers, and all of the Local Consumer Goods and Services needed to support the employees at each stage).

      So each $100 Billion above translates into a NET growth in GDP of $800 Billion or 0.4%.

      As Balanced Reciprocal Trade under each Bilateral Deal begins to grow for BOTH nations, the above scenario multiplies FURTHER.

      Not too shabby!

      Liked by 13 people

  13. montanamel says:

    AND:
    In 6 months….

    IF we don’t have a start on the intended wall down south…those Dem’s will have so much egg on face…they’ll be pooping thru feathers while cluck’n….

    And….all that Tariff stuff with China will be history…and, main street will be roaring.

    Check-6

    Liked by 1 person

  14. MAGAbear says:

    I’m glad Sundance brought up defined pension plans vs today’s 401k plans. A lower middle class person at least had some money going into a retirement account with a pension plan, but they really can’t make much of a contribution, if any, to a 401k considering most or all of their income has to be spent on the necessities of life. It’s always been my belief that 401k’s were set up to allow those who were already doing well to get an even bigger slice of the pie at the expense of the people counting on a pension.

    Just my 2 cents.

    Liked by 1 person

    • G. Combs says:

      “…the people counting on a pension.”

      I think you are several decades behind. The day you worked two or three decades for the same company and got a pension are pretty much long past. Of the eight companies I worked for only one is still in business. Hubby is pretty much the same since he was in the computer industry.

      The ‘new business model’ is to fire/lay-off anyone approaching vesting and replace them with a much cheaper new grad. The days when a company considered people an investment in the future are long gone. Now they want you to have the EXACT fit for the job and after the job is done you get fired.

      Liked by 9 people

  15. Franklin says:

    In retrospect, a defined benefit retirement plan was a losing idea for the governments and corporations that adopted them. Nobody wanted to do the analysis needed to disprove that “blue skies” were forever. Essentially a defined benefit plan is a Ponzi scheme where you need either the beneficiaries to die off early or the plan was forever adding new workers. Neither of these options has worked out.

    Social Security is in the same hole for the same reasons.

    Liked by 6 people

    • Payday says:

      It’s not a Ponzie scheme if managed properly. Investments made over a lifetime will compound annually and provide what’s needed. There are good well managed private pension funds out there. I know. I’m fortunate enuf to have one. Problem is…politicians and some CEOs couldn’t keep there hands out of the cookie jar,

      Liked by 2 people

    • GB Bari says:

      Not just any defined benefit plan, but plans where the defnined benefit depended upon ROI’s that were unrealistic for the long term. If Warren Buffet claims that average return on stocks is 5-7% over the long term, and that is verifiable, then that ought to be the maximum used in calculation of any pension benefits. And the defined benefit shoud not be locked in until the person retires.

      My former employer’s benefits department re-calculated the projected pension benefit for each employee every time you requested a forecast while you were working. The ROI was continually decreasing due to the financial environment throughout the Obozo years so that employees planning a retirement and who obtained the projected pension payments ahead of time would see those projected payment amounts decreasing very slightly every 6 months or so before they actually retired.

      When I retired in early 2016, my pension was locked in at whatever the investment rates were at that time. I’m doing fine. Our company has been audited and its pension program found to be quite healthy. The catch is – pensions were only offered for legacy employees hired pre-2006; they stopped offering pensions to employees hired after 2005. Those newer hires all have to use 401K’s and personal investments to save towards retirement. Of course wages were bumped up slightly for newer hires to offset the lack of company pension contributions.

      Liked by 3 people

      • Payday says:

        I was in a similar situation. Except they didn’t end the pension programs for younger employees. They delayed full retirement benefits age and changed it enough to make early retirement very difficult.

        Liked by 1 person

        • GB Bari says:

          Yes I have heard of other folks whose companies made similar adjustments. Mine just stopped altogether but it was for the best. The company had become quite large as it bought up and merged with many other companies throughout rthe late ’90s and early 2000’s.

          There were so many different retirement and benefit plans for all of the employees in various legacy locations that it became unwieldly to manage. But I think the company did a great job of slowly and eventually migrating everyone to one of just a few variations on one single plan.

          Like

      • JOSEPH ANGEL says:

        Sounds like you worked for GEICO.

        Like

  16. smurfette says:

    It’s called asset stripping of the middle class and geopolitically, bankers have their eyes on those in the Western countries of which numero uno target country is America.

    If anyone wants more confirmation, this time from insiders, about Wall Street and who are the elites watch this

    I’m not finished watching it myself but it’s a good one to share with those who aren’t sold yet on a globalist takeover.

    Liked by 2 people

    • Payday says:

      I listened for 45 minutes waiting for him to get to the point. Just couldn’t do it anymore. He says a bunch of nothing.

      Like

      • smurfette says:

        I like it because he is an insider and he confirms for non-believers about the NWO. The majority of people are still unaware about the NWO and this vid is meant for sharing with them. He also talks about multicorporations and their lobbyists who write the laws not Congress. The lobbyists knew every sentence contained in Obamacare’s 3000 pages but of course not Congress. Every time constituents wrote to their critters, the lobbyists remind them of how rich they’ve become because of their (ahem) Caymen Islands bank account. Mitt Romney, anyone?

        The elites also practice not owning anything themselves therefore they don’t worry about taxes. That’s why you have the wealthy Buffetts, Gates, and Hollywood all pushing for higher taxes. Their money is stashed away in trusts so you can’t trace that they essentially own 90% of world’s wealth while taxes are leached off hard working and honest middle class blue and white collars.

        And this is key: The elites want control over everybody and their goal is to enslave everyone by WHATEVER MEANS possible at their disposal.

        The only thing I disagree on with the speaker is that the elites feel safe in their homes and think they can truck in food from other countries when the system fails like Greece, while We the People prepare with survivalist training.

        Liked by 2 people

  17. Zorro says:

    “Trumponomics desperately needs a tutorial to the American people explaining the rockiness of the transition and all that’s at stake.”

    So true. The stuff I heard this morning on our local “conservative” talk station. I was thinking they need a good MAGAnomics education.

    Liked by 2 people

  18. treehouseron says:

    This guy Hassett is a PATRIOT just like Mulvaney. Hard working nose to the grindstone guys who get paid to make the country better.

    Liked by 1 person

    • emeraldcoaster says:

      Hassett seems to be a good fit with the CEA, but I’m somewhat leery due to his past associations with McCain, Bush and Romney. Hopefully he’s the real McCoy.

      Like

  19. wodiej says:

    I understood the economics of Wall St. vs Main St. some time ago. Business does not care about jobs-they care about making money. The health care industry is the same way. There are trillions and trillions of dollars floating around these companies and the people who run them. They tout job benefits such as health insurance but then you find that it’s not that great because there are deductibles, maximums, and exclusions. Dental, vision and hearing options are non-existent or very limited. Dental maximums usually top out at $1-1.5k a year. A single procedure will go over that amount. I’ve heard hearing aids are ridiculously expensive.

    Main St. business, family-owned, is the best option if you want to work for someone else. Personally, I have made more money being self-employed than I ever did working for someone else.

    Liked by 1 person

  20. Mr BiG Time says:

    Education is definitely needed. Investments are very emotional for most. If the markets are tanking going into an election the party in power could be on BiG trouble.

    Liked by 1 person

  21. gvillewill says:

    With the advent of HFT, Wall Street ceased to be a barometer of the economic health of the nation and has become something akin to a video game where algorithms battle in nanoseconds to score points, either up or down.
    The Great Haircut is coming.

    Liked by 1 person

  22. surakvulcan says:

    I would like to see POTUS and Congress reinstate Glass-Steagall and the uptick rule, and ban naked short selling.

    Liked by 1 person

  23. As a professional retail (meaning I don’t trade other people’s money) Trader I have a few things to say:
    1) Big money = big advantage.
    2) The only way the biggies get more money is to take it from your account.
    3) Mr. Market exacts the maximum amount of pain from you before returning to equilibrium.
    4) The borrower is servant to the lender. If you’re leveraged in your trade you are at exponential risk
    5) the House knows where your stops are and they will gun for them by pushing the prices way past equilibrium.
    6) Market tops and bottoms are where the big money is made and lost.
    7) Markets find bottoms when nobody is left to sell. The inverse is also true- markets find tops when nobody is left to buy.
    7) Wall Street is a tiny Billionaire Boys Club and you ain’t in it!

    CHRISTMAS EVE: That dump came from London at their lunch time- meaning their time to leave for Christmas Eve festivities. It was calculated to happen at the time when the least number of traders were active (thinnest volume) guaranteeing the maximum amount of pain if you were long. That dump happened over a period of about about 2 1/2 minutes. Say it out loud: “that sh*t was on purpose”
    Those same traders fully planned to buy up the market on the inevitable bounce. Basically they put the best stuff on sale and bought big for cheap. Guess who financed that scam? YOUR ACCOUNT DID! Guess who missed out on the big sale on great stocks? While I’m at don’t forget the MSM’s complicity in talking the market down. Wall Street has had a cozy little deal with the MSM to aid an abet their larceny by conversion scam since the beginning.

    HOW CAN YOU WIN? Well, I’m going to catch h.e. double hockey sticks for this but: If you intend to use the markets to grow your savings you MUST become an educated professional. My advice is to treat growing you money like a full time job. Subscribe to the Investor’s Business daily- it’s honest. Read Benjamin Graham’s book The Intelligent Investor. Read Lefevre’s Reminiscences Of A Stock Operator. And as we traders like to say “If you can’t quote Jesse Livermore you probably don’t need to be in the market.”

    One last thing: Look up James 1:5. Apply it!

    Liked by 2 people

  24. StanH says:

    This is ballgame for the cabal/uni-party. This is how many of our Public Servants became multi-millionaires, selling out main street for K-street. Propping up Fannie & Freddie, the Community Reinvestment Act, 30 to 1 derivatives, repeal of Glass-Steagall, (Robert Rubin, Sen Graham (R) Texas, Bill Clinton) with the support of the Uni-party. It is a cacophony of anti-Americanism for the ethereal New World Order promise of fairness. When in truth only promulgates the wealth into the hands of a very few, leaving the rest of us out.

    Well done Mr. President you are right over the target. .

    Liked by 1 person

  25. MS Idaho says:

    Non-investor, senior citizen beholden to CC debt here. I have the TV on most of the day for company. IMO there are too many commercials for non-goods. Well, an occasional car ad – but mostly ‘buy insurance’, or ‘donate to’ or buy something for that magic number, $19.99. I will believe we have turned the corner economically when we see more ads for real products produced in the USofA. Who is going to sell Kenmore appliances, or Amana ranges or? How about clothes made here? And I don’t see real estate ads, either. Lawyers (sue, sue – you may be entitled) yes. I know, a very low branch swaying in the wind. Hey – here’s hope for a Happy New Year and a great 2019

    Like

  26. bitterlyclinging says:

    J K Galbraith in his book dissecting the 1929 stock market crash placed a lot of the blame for its severity on the investment trusts, running out of stocks to incest in and instead investing in other investment trusts and when the stock market went belly up, the downswing was magnified.
    Hey, what’s the big deal mutual funds investing in other mutual funds, futures, derivatives, or investment trusts.
    “Those that cant learn from history’s mistakes are condemned to repeat them.”

    Like

  27. nightmare on k st says:

    the reality is:

    $17 Trillion dollars of valuation is no longer on the “plus” side of the world accounting ledger

    think of a black hole

    Like

  28. JOSEPH ANGEL says:

    (((Wall Street))) vs. Main-street– fixed it for ya. There are no COHENcidences.

    Like

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