The further to the left or the right you move, the more your lens on life distorts.

Wednesday, December 07, 2016

Paul's Prognostications

Paul Krugman is one of the progressive elite. He's a Nobel-prize winning economist, is a best-selling author, and has his own column in The New York Times in which he pontificates on subjects far removed from economics, and is a fire-breathing leftist. I have, on more than one occasion, suggested that Krugman may be unbalanced.

Today, the Down Jones Industrial average closed at an all-time high of 19,549.62. It has been rising steadily after the upset election of a president that seems to care about growing the economy, establishing an environment in which millions of jobs can be created in the private sector, respecting business, and reducing suffocating regulations.

The shock of Donald trump's unlikely victory did cause markets to drop precipitously on the evening of the election. Most rational people, including yours truly, shrugged their shoulders, recognizing that the instantaneous uncertainty caused by the upset was behind the drop, not Donald Trump himself. Within a day, the markets recovered and began their upward march.

This is what Paul Krugman wrote on the night of the election:
2016-11-09T00:42:44-05:00 12:42 AM ET

It really does now look like President Donald J. Trump, and markets are plunging. When might we expect them to recover?

Frankly, I find it hard to care much, even though this is my specialty. The disaster for America and the world has so many aspects that the economic ramifications are way down my list of things to fear.

Still, I guess people want an answer: If the question is when markets will recover, a first-pass answer is never.

Under any circumstances, putting an irresponsible, ignorant man who takes his advice from all the wrong people in charge of the nation with the world’s most important economy would be very bad news. What makes it especially bad right now, however, is the fundamentally fragile state much of the world is still in, eight years after the great financial crisis ...

So we are very probably looking at a global recession, with no end in sight. I suppose we could get lucky somehow. But on economics, as on everything else, a terrible thing has just happened.

Krugman, like far too many leftists, is so blinded by his ideology that he could not sort out a stock market blip (that was both understandable and trivial) from a "global recession, with no end in sight." Kind of funny, actually.

Now, it may very well be that this overheated market will drop hard, and it's an absolute lock that progressives will blame Trump. But when you hear crazy Paul and his ideological bedfellows rant about Trump's part in the next stock market decline, be sure to remember what he wrote on 2016-11-09T00:42:44-05:00 12:42 AM ET.