Same Old Story

After 8 years of obstructing Obama at every turn and denying his requests for economic stimulus funding, the Trumpublicans are planning to a) infuse massive federal funding into infrastructure projects, particularly those that benefit their donors, while simultaneously b) providing massive tax cuts for the wealthy. In other words, they’re planning to run up the national debt sky high. Accruing debt was anathema to Republicans when Obama was in office, but apparently it’s OK now that they have their puppet in place.

Their trickle down madness always ends the same. It starts with a short-term bubble, during which they brag about the effectiveness of their policies, followed by a massive crash, which they manage to blame on something or someone else.

Obama used the limited tools granted by the Republican congress to dig us out of Bush’s financial crisis.  He has achieved strong, steady economic growth while avoiding another financial bubble. If he had received any support from the Republicans, he would have made bigger investments in infrastructure projects, which would have resulted in more robust growth. Despite their intransigence, he achieved reliable, stable growth.  Now that the Republicans are in charge, they will start spending like drunk sailors while cutting taxes, just like they always do. It always ends the same, with a giant financial bubble followed by a spectacular crash.  Does anyone remember Ronald Reagan? George W. Bush? 

The trick for those of us in the middle class is to accurately time the crash without getting burned. I’m tentatively planning to take my money out of the market before Trump is inaugurated.  I may miss the highest of the highs, but I hope to avoid the inevitable, massive crash. I’m pushing 60 and don’t have time to rebuild my savings.