With the rapid decline of the stock market over the last few days–down nearly 10 percent, or over 1700 pts, since Thursday–investors are looking for a safe harbor for their funds.
Some, like presidential candidate Donald Trump, are arguing that America is being punished for China’s economic sins due to poor planning and trade policies by the federal government. His solution, of course, is to “Vote Trump”.
Markets are crashing – all caused by poor planning and allowing China and Asia to dictate the agenda. This could get very messy! Vote Trump.
— Donald J. Trump (@realDonaldTrump) August 24, 2015
Other experts have been arguing for a long time that the stock market, which reached historic highs in June (over 18,000), was due for a correction.
Whether it is poor China policy or an overdue correction, something drastic definitely happened.
Peter Reagan, a financial market strategist at precious metals dealer Birch Gold Group, points a finger at the Federal Reserve Bank: “For the past seven years, the Fed’s loose monetary policies have flooded the market with artificial liquidity. This desperate attempt to prop up the economy seems to have helped in the short term, but now it’s contributing to the enormous level of volatility we’re seeing in the stock market these past few weeks.”
Former congressman Ron Paul predicted a steep decline for the stock market in June. “I think [the crash] is going to be much greater [than 10 percent] and it will probably go a lot lower than people say it should,” said Paul. “I don’t think it’s going to be just a correction,” he told CNBC. (Read more from “Trump Identifies Cause of Market Crash, Delivers This 2-Word Solution” HERE)
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Trump Identifies Cause of Market Crash, Delivers This 2-Word Solution