Trump Crisis Finally Hits Stocks As Concerns Mount Over GOP Defections

The stock market's decline today---DOW sinking > 200 points--- highlights the growing concerns about whether Trump loyalists on Capitol Hill will turn against the president in the face of a week of one crisis after another, Wall Street veteran Art Cashin told CNBC.

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Until today the stock market, which has soared since the election on hopes for a Trump-inspired boost to the economy, had been largely ignoring the White House turmoil.

Traders expected Democrats to blast Trump for this latest revelation, Cashin said. "But if he begins to suffer any sizable defections among the Republicans, that's a problem."

Cashin drew parallels to the Watergate scandal that led then-President Richard Nixon to resign in August 1974 as impeachment proceedings were underway.

"Back in the Watergate days, it was [then-Sen.] Howard Baker that stepped across the line and that's when Nixon knew he was in trouble," Cashin recalled. Any Trump loyalist abandoning the president in that way would "certainly remind everybody" about Nixon, Cashin said.

Sen. John McCain, who's never been a fan of Trump, also evoked Watergate. "I think we've seen this movie before," McCain said Tuesday. "I think it's reaching a point where it's of Watergate size and scale." On Monday, Sen. Bob Corker said the White House was "in a downward spiral" and needs to "figure out a way to come to grips with all that's happening." Cashin said McCain's comments were not a "great surprise, but if there are others that could be a problem."

There's certainly a concern in the market that Trump's policy agenda of tax cuts and deregulation could be derailed by these controversies, Cashin said. "[But] there is a perverse positive, not so much for the president but for the agenda, in that people are saying if Mr. Trump were to leave office Pence can work much better with Congress. So there might be some sense of reward there," Cashin said, referring to Vice President Mike Pence.​

http://www.cnbc.com/2017/05/17/art-...ks-as-concerns-mount-over-gop-defections.html

 

Trump has been pointing to the stock market rise as evidence of the soundness of his policies; but
when the stock market tanks, which it has the last two trading days,

when the DOW dropped ~1,800 points,​

the dotard has been silent. The dotard cherry-picks his stock market news, just like the idiot Nunez cherry picks his notes on the FISA application on Carter PAge

on Fri, 2 Feb 2018,

on the heels of ~ 80 consecutive months of impressive job gains, coupled w the exodus of the former Fed Chair who had been able to keep interest rate low for the past several years, as well the yield on the 10-yr Treasury rising above 2.8 % for the first time in years, inflationary fears caused the DOW dropped > 660 point

festering political fears, release of the Nunez memo, and debt ceiling crisis, only exacerbated the stock market downward spiral.
​

on Mon, 5 Feb 2018

Flash crash happened; the computerized algorithm kicked in, triggering massive selling across the board.
at one point, the DOW was down ~800 points in 2 minutes. the DOW ended up dropping > 1,100 points, a 4+% drop.
at one point, the DOW was down 1,600 points.
​

After the market close, the dotard's WH issued a statement on his economic policies; lots of words put together that, taken as a whole,
say nothing. Most noteworthy, it avoided any reference to the stock market

 

the global sell-off has begun.

the Asian markets, for Tues, 6 Feb 2018, have been opened for ~~ an hour.

Hong Kong's Hang Seng Index was down 3.8 %down at 10.23am HK/SIN.
Meanwhile, China's Shanghai composite was down 1.9 %.​

as of 10PM EST, the the DOW future is down > 1,000 points. It could be worse, if the European markets, which will open in 6 hours, follow suit

 

the culprits are the leveraged ETNs (Electronic-Traded Indices) to sell market volatility,

• VelocityShares Inverse Vix Short-Term ETN (XIV.P),
• ProShares Short VIX Short-Term Futures ETF (SVXY.K) and
• VelocityShares Daily Inverse VIX Medium-Term ETN (ZIV.O)

​

Hedgies use these ETNs for "portfolio insurance", an euphemism for betting on low market volatility. As long as the overall market volatility is low, these ETNs make $ hand over fist. But when volatility picks up, because they're so heavily leveraged, these ETNs are obligated to sell large blocks of stocks in a matter of seconds, thus the "flash crash".

over the previous two trading days, overall market volatility, the VIX, aka the fear index, almost tripled, rising from 13 to 38. this led to the tanking of these inverse volatility ETNs, so much so that they have been halted from trading

https://www.reuters.com/article/us-...trading-after-heavy-losses-idUSKBN1FQ1RE?il=0​

 

you go !

bulls make $, bears make $, hogs get slaughtered

 

every day, the dotard in the WH, w the help of Fox News, plays the victim card.

the media did not report that i had the largest

electoral vote win since Reagan and the inaugural crowd ever​

i was bugged by Obama
my NSA adviser had been treated unfairly
my daughter has been treated unfairly by Macy
my campaign staff member, who i had never met, had been under FBI surveillance via illegally obtained FISA warrant
i been subject to a witch hunt, even tho, in less than 6 mos, there have already been 4 prosecutions and 2 guilty pleads
etc.​