Friday, October 11, 2019

Leftists' hopes for a recession spoiled AGAIN by U.S. consumers

'Comedian' Bill Maher is spttin' nails today, as the American consumer continues to defy expectations and drive expectations to new highs.
Sentiment among American consumers rose more than expected this month, boosted by expectations for low inflation and rising incomes, according to preliminary data released Friday by the University of Michigan.

The October print on consumer sentiment climbed to a three-month high of 96 from September's 93.2, the new figures showed. The current economic conditions also rose to 113.4 from 108.5 ...

Optimism about the possibility of a trade deal between the world's two largest economies also rose this week, when top diplomats met in Washington, D.C. for negotiations.

President Trump, who will have a key meeting with Chinese Vice Premier Liu He on Friday, said "good things" are happening at the talks, noting there are "warmer feelings than in recent past."
Maher stirred some controversy last August when he openly wished for an economic crisis, stating his belief that the country could survive that turmoil but not a second Trump term as President:
The exchange began with commentator Tom Nichols remarking about Trump's trade policies, saying "I'm not wishing for a recession, but if the farmers want to keep touching the hot stove."

“Well, you should be," Maher interjected. "Because that will definitely get him unelected."

"But Bill, you don’t really want a recession," shot back Anthony Scaramucci, Trump's former White House communications director and a now occasional critic of the administration.

“I really do. We have survived many recessions. We can’t survive another Donald Trump term,” Maher responded.
Apparently, consumers are smarter than comedians and investors seem to be, too. The S&P 500 is in the middle of a technical breakout on the consumer sentiment and trade deal prospects and could test new highs for capital valuation next week and through the holiday season.

This begs the question: Why are average Americans bullish on the economy? Isn't there a Trump Trade War going on? What about that (fake) impeachment inquiry? What about the big auto worker strike? Why shouldn't consumers do what Democrats want them to, and trash the economy?

Leftist darling and NY Times op-ed star Paul Krugman has been pining for a crash since Trump's election in 2016. It hasn't happened. The primary reason Maher, Krugman (and a buttload of other wackos) have been wrong is partly explained in yesterday's post on the fundamentals of U.S. economic growth. The average American is better off today than he was in 2018, 2017 and 2016.

Another big part of consumer confidence is that the average American has more take home pay thanks to the Tax Cut and Jobs Act of 2017, which helped little guys a lot more than big guys, regardless of how the media screech about "tax cuts for the rich." It wasn't and liberals are not happy about that at all.

American consumers have driven growth in the wealth of this nation since World War II. When you put more money in their pockets, they're better off. Duhh... When they're better off, they spend more. Double-sized Duhh...

Whether you love President Trump, hate President Trump, or really don't gaf about him... you can't deny that YOUR President keeps his promises.


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