Editor’s note:  Mnuchin, with his ineptitude, cost American retirees nearly 1.4 Trillion in losses over December alone, while on vacation in Cabo.   He has absolutely no understanding of banking law, his own job or economics in general.  But he is rich and an asshole, that counts for a ton in the Trump world.

The stock market has experienced its worst performance in December since the early 1930s. Despite brisk holiday shopping, the usual Santa Claus rally was canceled, in part thanks to a grinch named Steve Mnuchin.

The treasury secretary’s inexplicable maneuver on Christmas Eve eve, announcing that he convened meetings — by phone, from Cabo — with the six largest banks and was reassured that America faced no liquidity problems, when nobody was particularly concerned that we did, sent markets into a volatile tailspin. It was as if the contractor you hired to fix a sticky door told you that your roof was probably in no immediate danger of collapse; that wasn’t your preoccupation before, but it is now.

The stock market is not the economy, as long as jobs and paychecks continue to be strong. This was an unforced error that temporarily snagged the 10 percent of America that own 84 percent of all stocks. But Mnuchin’s boneheaded actions reflected his dominant characteristics. He is a sycophant willing to debase himself, no matter how strongly, at the altar of Donald Trump.

The president has convinced himself that the Federal Reserve is ruining his economy (and, like a stopped clock, he’s not totally wrong), and Mnuchin’s pronouncement of financial stability made no sense outside of a vain need to show his boss that everything was actually fine — or, at least, that Mnuchin was doing things.

Read more at The Intercept

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3 COMMENTS

  1. Stupefying nescience & ignorance despite easily researchable overwhelming prima facie evidence. Tribe always protects it’s own & secrecy since the Talmud. The Empire is creating false narrative reality & not many preceptive enough to see past the usual predictable programming smoke screens.

  2. I would in no way defend Mnuchin (and his goyim eye-candy, trophy wife), but how is he any worse than Robert Rubin (from Slick’s cabinet), or Hank Paulson (from Bush-the-Lesser’s cabinet)? Rubin saw to it that Brooksley Born was dismissed from her post as Chairman of the CFTC, after she sounded the alarm about the dangers and inherent volatility of unregulated, over-the-counter derivatives. You know, like the ones that caused the crash of 2008? (Not to mention, it was Slick who signed the repeal of Glass-Steagall ,[also voted for by Joe “plugs” Biden]).
    Paulson saw to it that these same banksters were bailed out, while simultaneously interest rates were lowered to near zero the entire Obama presidency, killing pension funds, savers, and people on fixed incomes. At the same time, corporations were borrowing free money to do share buybacks. That is in fact what drove the “bull market”; that and timely interventions by the exchange stabilization fund, with their high speed HFT Lagos. It was not fundamentals. Mnuchin may be a dunce, but fraud is exponentially worse than incompetence, and it has run much deeper and longer.

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