Ever since Donald Trump assumed the presidency, the U.S. stock markets have been going gangbusters.
Just 16 days ago, on January 17, the Dow Jones industrial average surged more than 300 points to close above 26,000 for the first time in its 121-year history.
And yet yesterday, the Dow Jones industrial average plummeted 665.75 or 666 points to 25,520.96, the biggest one-day points drop in ten years, since Dec. 1, 2008 or the beginning of the Great Recession.
Kevin Dugan reports for the New York Post, Feb. 2, 2018, that “Stock markets had their worst day on Friday since the dawn of the Great Recession, as fears mounted that the Federal Reserve may be forced to act more aggressively to cool down an economy that’s heating up faster than investors expected.”
On a percentage basis, yesterday’s 2.5% drop in the Dow was the biggest since the day after the UK voted to exit the European Union — an event that sent markets in a free-fall the world over.
Prudential Financial chief market strategist Quincy Krosby said:
“We all know that many bull markets have ended by the Federal Reserve as they raise the rates to the point of slowing the economy down perhaps too much. It’s come on quickly and it caught the market off guard.”
Blah, blah, blah.
Krosby neglected, however, to inform you that yesterday, the Federal Reserve had met and decided AGAINST raising interest rates.
Dow’s steep fall yesterday was not a reaction to bad economic news. On the contrary, the U.S. had added 200,000 jobs in January, and wages rose 2.9%.
So what happened yesterday that could have triggered the largest stock market plunge in ten years?
The House Intelligence Committee’s release of the infamous FISA memo, which reveals how the Obama Administration, on the basis of an unverified “dossier” prepared by a former British spook known to be biased against Donald Trump, abused the Foreign Intelligence Surveillance Act to get a court warrant to conduct electronic surveillance on a Trump advisor. As some had intimated, the contents of the memo should lead to not just the firing of senior FBI-DOJ officials, but their imprisonment.
So who engineered yesterday’s stock market plunge?
On January 3, 2017, responding to MSNBC’s Rachel Maddow‘s description of Trump as “taking these shots, antagonisms, taunting the intelligence community,” Sen. Chuck Schumer (D-NY) said something quite ominous:
“Let me tell you, you take on the intelligence community, they have six ways from Sunday of getting back at you. So, even for a practical, supposedly hard-nosed businessman, he’s [Trump] being really dumb to do this.”
Two days later, on January 5, 2017, former Sen. Rand Paul observed that Schumer “is speaking the truth there — better watch out. I think Trump knows about it. That’s why he has private security.” Paul said Trump “will have problems achieving” reform of the intelligence agencies “because there’s so many obstacles and he won’t know who really represents the CIA unless he is well attuned to the deep state because the real orders and assassinations” are given to the CIA by the deep state.