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Chris (CJ Fitz)'s avatar

So, if I can speak plainly, who on planet earth believes that a career statistician would have the balls to just go making shit up for her little agenda? Obviously Trump is the lying sack of shit here who is deeply jeopardizing our economy. I just don’t know how we get through the monstrous level of chaos that this guy is spewing upon the nation. It ain’t gonna be easy.

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Bare Bones's avatar

His actions could boomerang on him, I would imagine. If the report is good, will good numbers be trusted?

Only bad numbers are to be trusted? This is a move comparable to his loan applications. Make the numbers fit his personal agenda.

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Marlon Weems's avatar

Yes. The person he wants to run things has yet to be confirmed by the Senate.

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Chris (CJ Fitz)'s avatar

Additionally, and I don’t understand bonds, you or someone did a piece on how Trump is heavily into bonds and that if he got interest rates down in the range of 300 basis points he would make a major killing.

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Marlon Weems's avatar

The short answer is yes. Bonds appreciate in value as rate drop under normal conditions. HOWEVER, if the bond market (and the stock market) perceives the loss Fed independence, all bets are off. You might see a decline in short term interest rates, with long-term rates rising.

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Chris (CJ Fitz)'s avatar

Ahh! Thank you! That caveat is important.

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Bridget Collins's avatar

Marlon can correct me but that's because the bonds Trump owns are paying a higher interest rate than any new bonds issued after the cut.

So the bonds he owns can be sold for more than he paid for them.

And (again I could be wrong because it's been a long time) because some bonds have an end date, trustees and investors have to roll those bonds into new comparable bonds. Which again makes his bonds more valuable.

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Marlon Weems's avatar

I should add that all bonds have an end date, or maturity. There’s really no requirement that folks roll bonds over, although 30-day T-bills are generally a substitute for cash.

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Marlon Weems's avatar

See my previous reply. 👆🏾

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Bridget Collins's avatar

I knew you would know.

; )

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Chris (CJ Fitz)'s avatar

Thank you Bridget.

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Gigi Tierney's avatar

Meanwhile the margin debt in the US stock market currently exceeds 1 trillion dollars.

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