The Stock Market Slide Isn’t Trump’s Fault
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RUSH: On the market, there’s so many things here to observe about this. The stock market is down 4,000 points since October. It’s now down to 21,990. It’s barely under 22,000, down 455 for the day. You know what short sellers are, right? These are people that bet on prices of things to go down. You know who one of the biggest short sellers in the world is? George Soros. This is how, in fact, he has made the lion’s share of his fortune is betting or going short on currencies. I have no doubt that Soros is in the mix here.
Raising interest rates, the Federal Reserve, can have a deleterious effect, but not to this extent. I mean, the Fed raising interest rates by itself is not responsible for this large a sell-off.
And you had the Treasury secretary, Steven Mnuchin calling the six largest bank CEOs to assure them that there’s still credit, there’s still liquidity in the credit markets, meaning there’s still plenty of money to borrow, the institutions are alive and well and making sure that these banks know that, not to start tightening up, and everybody said, “Wait a minute. Things must be wrong if the guy’s making a phone call.”
But there’s so much going on. You remember quantitative easing when the Fed just started printing money left and right and most of that ended up as purchased securities in the stock market, did you know that the Federal Reserve, recent financial reporting today, the Federal Reserve is actually insolvent, they’ve got about $39 billion in capital, and they just had to write off $66 billion in losses on securities holdings, i.e., the bad mortgages they bought up in 2008, quantitative easing.
But if the credit markets dry up, then there’s real panic. Because credit is all this market has been since quantitative easing. I should go back to my transcripts and look, ’cause I have been suspicious of this, when I found out what it actually was, quantitative easing was just printing money to handle subprime mortgage crisis, and that money ends up at the stock market. Because the rest of Obama’s economy was stagnant and flatlined, except the market was just skyrocketing upward, which everybody in the Obama Regime was pointing to.
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