Wall Street’s on edge, and no one’s got a crystal ball to see where the market’s headed. It’s a nail-biting time for executives, investors, and consumers alike.
You might think, “These folks should’ve seen it coming, like the 2007-08 crisis.” And you’d be right—they did. But fear and market bets kept them quiet.
This time, it’s a different beast. Predicting the market feels like shooting in the dark, thanks to policy blunders like overspending and relentless money printing that muddle analytical tools.
The political landscape isn’t helping. The policies of two presidential contenders are adding to the confusion.
It’s a rough time for economic forecasters, investors, and everyday Americans planning for the future. And we’ve got our policymakers to thank for that, with their unprecedented antics.
Both sides of the political aisle have their share of blame. This bipartisan folly stretches back decades, but recent decisions have raised the stakes.
Thursday’s debate showcased a steady Trump against a faltering Biden. Yet, Trump’s track record isn’t spotless. His southern border wall remained unfinished due to political squabbles.
Biden’s term has seen its share of chaos. His immigration policies have strained the nation’s social fabric, trying not to upset the progressive base.
Economic policies are a headache for forecasters. Trump’s tenure added a staggering $8 trillion to the national debt, not just due to COVID-relief. His tax cuts and deregulations boosted employment and wages, but he missed the chance to streamline government spending.
When COVID hit, Trump kept spending, even as the economy rebounded. Re-electing him could mean more uncertainty given the current debt levels.
Biden’s spending habits make Trump’s look modest. He promises more student debt relief, green energy projects, and government-subsidized manufacturing. Even if replaced, similar policies are likely to continue.
Critics argue that Trump increased debt more than Biden. Yet, Wall Street pros note it’s an apples-to-oranges comparison. The economy stalled during Trump’s final year, while Biden ramped up spending as recovery began.
The Congressional Budget Office projects that by next year, debt growth under Biden could match or exceed Trump’s. Debt now stands at nearly 120% of the US GDP—a near-historic high.
So, what happens if we face more spending needs due to war? Or if creditors lose faith in the US dollar?
We’re in uncharted waters, and the horizon’s looking stormy.
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