A thing that makes me nervous is that, for ages, the Fed never successfully re-raised interest rates because the market panicked every time they even mentioned it. But if things go badly, lowering interest rates isn't even possible...
This drop is probably just a bump and not a collapse. So I'm not prophesizing.
That said: maybe too big to fail is a bad idea particularly in how it was executed, but at least the 2008 recovery happened under the Obama administration with economic logic behind it, and I think we really *were* close to a cliff. I'm not sure Trump's team will follow anything regarding economic safeguards if things go badly under this administration.
@cwebber to be fair, the stock market collapsing and wiping out a big enough portion of the rnc donor base's wealth is literally the only way trump's term is limited to fewer than 8 years
@swizzard Hm nope, I don't think that's true. I don't think Trump got here on RNC donations... I don't think he was donor top choice from all I've read. I think he got here on fear.
Maybe a stock market crash could do badly for Trump if it turns people against him. Though if it incites some sort of violent action, I really do think Trump is waiting for his Reichstag Fire.
@swizzard That's not to say he didn't take RNC donations and that it wasn't a powerful force. I just think he wasn't donor top choice.
