Repeatedly, President Trump and his supporters have bragged about the “booming” stock market, attributing it to the administration’s marvelous economic policies and the great public confidence in those policies. Like much of what comes out of the Donald’s mouth … this is simply nonsense.
The stock market is, and always has been, just a gambling casino, a glorified Las Vegas. Every day a bunch of people, (gamblers) buy and/or sell one stock or another; sometimes they sell the same stock they bought the day before; or the hour before; or the minute before; the next day they may well do the exact reverse. All depending on the latest news headline, or what a corporation has done to elicit attention, or what a friend just told them, or a fortune teller, or that day’s horoscope, or just a good ol’ hunch. Or they make up a reason; anything to avoid thinking that they’re just pulling the lever of a slot machine.
And many people buy certain stocks because other people are buying it. This is what stock market analysts call a speculative bubble. Prick the confidence and the bubble bursts. “The stock market,” Naomi Klein has observed, “has the temperament of an overindulged 2-year-old, who can throw one of its world-shaking tantrums.”
Walter Winchell, the 1960-70s powerful and widely-syndicated gossip columnist of the New York Daily News, famously wrote that he lost his faith in the stock market when he saw that a stock could jump sharply in price simply because he happened to mention something related to the company in his column.
And all this occurs even when the stock market is operating in the supposedly honest way it was designed to operate. What are we to make of it when sophisticated investors devise a computer scam for instantaneous buying and selling, as has happened several times in recent years?
Yet President Trump and his fans would have us believe that the big jump in stock prices of the past year is testimony to his sterling leadership and oh-so-wise policies. What will they say when the market crashes? As Trump himself will crash.
Yes, that’s what they’re thinking of next. Among other things these cars will be able to catch speeders and issue tickets. But here’s the real test of the system’s Artificial Intelligence – Can the police car be taught how to recognize a young black man, drive to within a few feet of him, and fire a gun at his head?
