Ray Malgren is old enough to remember those famous days in the great or booming stock markets that sucked people in before the bottom fell out. This stock market rose out of the ashes of the Great Recession and its enormous financial boosts of easy money, reduced taxes and rate cuts. A lot of those efforts by Obama were not appreciated by the common people who saw the rich being subsidized while they were losing their homes and cars. It got the economy going before we dropped into a real recession. Doing it bothered Obama but America came first.

Those policies were meant to be slowly reduced so as to reduce deficits of a half trillion and to raise the Federal Reserve Funds rate back to historic normal. The sequestrian was designed to cut budget increases reducing deficits as the revenues increase.

What happened since 2016 is another tax cut and ending sequestration resulting in a twenty percent increase in the deficit each year. Last year was the first time since 2012 that the deficit had gone over a trillion and that was with the back door taxes of tariffs bringing in billions.

When the drop happens, the usual tools aren’t going to be there. The Fed rate is near zero at Trump’s demand and we have already cut corporate and wealthy taxes to less than what I pay.

The economy is based on consumers continuing to buy things they can do without. Credit card debt is the highest it has ever been. The market is frothy. When does the inevitable drop happen? I hope Ray has stock in P & G. They make the paper products people will need!