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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsStock Market Continues to Plunge Despite Steve Mnuchin's Reassurances
The Dow Jones Industrial Index fell more than 400 points on Monday morning, continuing a downward trend, despite efforts by Treasury Secretary Steve Mnuchin to calm investors nerves. In an unusual move, Mnuchin made a series of phone calls on Sunday to six banks to make sure they had enough liquidity to continue to function.
We continue to see strong economic growth in the U.S. economy with robust activity from consumers and business, Mnuchin said in his statement, adding, With the government shutdown, Treasury will have critical employees to maintain its core operations at Fiscal Services, IRS, and other critical functions within the department.
But experts believe Mnuchins strategy has backfired. This is the type of announcement that raises the question of whether Treasury sees problems that the rest of the market is missing, Cowen & Co. analyst Jaret Seiberg wrote in a note to clients obtained by CNN. Not only did he consult with the biggest banks, but he is talking to all of the financial regulators on Christmas Eve. We do not see this type of announcement as constructive.
President Donald Trump, true to form, is not blaming himself and the government shutdown for the stock markets plummet, despite never failing to take enormous amounts of credit when the market is doing well. Instead, hes blaming the Federal Reserve and reportedly called for its chairman to be fired earlier this week, although incoming White House Chief of Staff Mick Mulvaney said Sunday that Trump now realizes he cannot fire him.
https://www.rollingstone.com/politics/politics-news/mnuchin-stock-plunge-772521/
gratuitous
(82,849 posts)Just because the Treasurer of the United States calls up out of the blue to ask if you have sufficient cash reserves just in case everything goes to hell tomorrow. Not that it's going to, heh, heh. Where did you get that idea?
spanone
(135,827 posts)cause trump knows more than all the bankers
Totally Tunsie
(10,885 posts)"Stock Market Continues to Plunge BECAUSE of Steve Mnuchin's Reassurances."
It must have been a great sacrifice, however, on Mnuchin's part to give up some of his Cabo San Lucas golf time to make the call. Need I mention he traveled by gubmint plane?
"And YOU get a shutdown, and YOU get a shutdown, and...OOPS."