The New York Post asks an important question
Can the feds, Wall Street prevent another market plunge?
Based on those two facts, I’ve always been very suspicious that Washington, with the help of friends on Wall Street, has been protecting the market. That seemed to be proven during the Great Recession, when US Treasury Secretary Hank Paulson had numerous calls with Goldman Sachs right in the middle of the crisis and right before markets started turning better.
So, can these same people turn on Trump and let the markets plunge?
Sure, except that most of the players you refer to also have their personal fortunes tied up in the stock market.
The is no easy way to answer the question above. One thing is certain, President Trump has set himself up for a fall should the stock market collapse. We discussed it previously……. This Idiocracy Will Hunt President Trump For The Rest Of His Life
Here is my personal view.
First, most (95% or above) of the market participants believe the FED will indeed backstop any large scale correction. Not only that, most investors believe that the FED/Government is in complete control of the market. That is a fallacy. Whether or not there is a play against Trump is irrelevant.
What is relevant is that the market will overwhelm the FED at exactly the wrong time. By the time most investors realize the FED is powerless, due to their inability to cut interest rates, it will be too late to sell. Act accordingly.
If you would like to find out exactly what happens next based on our Timing and Mathematical work, please Click Here.