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Whipsaw Thursday on Wall Street as investors worry about stimulus impasse

Written By | Oct 15, 2020
Whipsaw Thursday, stimulus impasse

Whipsaw. Late 19th century photo of shipbuilding activity in Alaska. University of Washington Library image via Wikipedia entry on “whipsaw.” Public domain image.

WASHINGTON – It’s a weird Whipsaw Thursday on Wall Street. Traders and investors in US stocks have been expecting an imminent deal in Washington to pass a follow-up stimulus program to boost the ailing American economy. That’s why stocks rose sharply early this week. But for the past two days, markets have been tanking again. Investors continue to worry about the phase 2 economic stimulus impasse endlessly being waged by House Speaker Nancy Pelosi.

More on Washington’s ongoing stimulus impasse

Pelosi’s arrogant, one-size-fits-all negotiating tactic consists of the same move all the time: shoving a union- and Blue State-centric Democrat payoff package down Congress’ and the President’s throat with her “my way or the highway” approach. Pass my bill or eff off. That’s the way to compromise!

President Trump is trying to ease things along, according to Fox News.

“Earlier, President Trump signaled he would be willing to spend more than $1.8 trillion for additional fiscal stimulus to help the U.S. economy battered by the coronavirus pandemic.

“‘I would,’ Trump told FOX Business’ Stuart Varney when asked if he would raise the price tag of the stimulus. ‘Because, look, this was not caused by our workers and our people. This was caused by China. And China will pay us back in one form or another. And the money’s coming back anyway. I would absolutely I would I would pay more.’

“Trump added that he said ‘go big or go home,’ but the negotiations are being hurt by Pelosi, who ‘doesn’t want to give anything.’

“‘She thinks it helps her with the election,’ the president continued. ‘And I don’t think so. I think it hurts her with the election because everyone knows she’s holding it up. We’re not holding it up. She’s holding it up.’”

Do American workers know which party is screwing them right now?

Unfortunately, workers and families on the margins are the ones hurting right now – the once-traditional key Democrat constituency. But mega-wealthy globalist and Marxist Democrats rule the party now, and what good are supporters who don’t have the big bucks to donate to your campaign, right?

Damaged by the over-reactive coronavirus lockdowns imposed first by the Feds and then by overzealous, nanny state governors throughout much of 2020, the energetic Trump economic miracle sputtered and disappeared in the second and third quarters of 2020 before showing renewed vigor late in Q3.

The first stimulus package, also stuffed with needless Pelosi pork, passed both houses of Congress and was signed by the President. Combined with the Federal Reserve’s astonishingly no-holds-barred near-zero interest rate regime and bond buying programs, the stock market’s sickening March crash is tantalizingly close to being overcome.

But now it’s jeopardized by Pelosi. She knows that the Democrat-owned and operated media will blame Trump and the Republicans for the Pelosi-engineered impasse as one more way to assure a totalitarian Democrat takeover of The Swamp on November 3. So screw everybody who’s hurting. They’re not important. (But we hope those “unimportant” peasants figure out who’s really on their side when they head for the real, virtual or disastrous “mail-in” voting booth this fall and break their old “vote Democrat” habit.) The situation is a disgrace.

Not a peep of truth on anything from the Lamestream Media.

Ah, but you won’t hear a word about this in the so-called mainstream media. The MSM, along with corrupt, California-based social networking platforms, decided unilaterally to scrub any reference to the epic *iden Family email scandal. You know, the one that erupted in a certain oddly right-wing newspaper based in a very large and very fashionably liberal East Coast city.

(We can’t get more specific here. Otherwise, search engines and social networks will demote our pages – again – just like they’ve been doing since at least late summer. What a bunch of politicized cowards. But you already know that. Result: We’re starting to be a bit more circumspect about using certain words to throw off the overzealous left-wing dogs. So read between the lines.)

More on Whipsaw Thursday and the ongoing stimulus impasse

In any event, the result of the Pelosi US Citizen Boycott Thursday has been a wildly whipsawing market. That’s an old Wall Street term referring to a hugely long, old-school, two-man saw that can flap about wildly and dangerously if one dude loses control of it. (See the Free Dictionary.)

And stocks sure are whipsawing today on Whipsaw Thursday. Markets opened sharply down this morning, with the Dow pinned about 200 points in red ink for much of the day. But this afternoon, the Dow, at least, is trying to mount a thus-far unconvincing turnaround. This major big-company average is now up a measly 10+ points as we enter the final half-hour of trading today.

Meanwhile, the tech-heavy NASDAQ and the broader-based S&P 500 remain off, but just fractionally at this point. As always, we’re not going to predict the closing bell. Just one positive or negative rumor about the elusive stimulus bill and fortunes could change in, well, a New York Minute.

Moving along

We still suspect that nothing is going to happen on this bill until November 4. Or later, if the Democrats still need more time to harvest votes. Then again, if the GOP caves, which they nearly also do, Pelosi will get to pay off her union, fat cat and Marxist supporters, and maybe even send a free head of cabbage or two to those deplorable, revolting peasants. That’s how you always end a stimulus impassse in 2020. What a sorry disaster.

This sure ain’t the country I grew up in. But it’s what we have right now, so we’ll deal with it. We continue to hold on to most of our stocks. Although, as we approach Election Day, it might be a great idea to hedge our positions. Or perhaps we should reduce them in case Mr Market doesn’t like the morning after. Whether we actually get relief from DC’s current stimulus impasse, or not.

– Headline image: Whipsaw. Late 19th century photo of shipbuilding activity in Alaska. University of Washington Library image via Wikipedia entry on “whipsaw.” Public domain image.

Terry Ponick

Biographical Note: Dateline Award-winning music and theater critic for The Connection Newspapers and the Reston-Fairfax Times, Terry was the music critic for the Washington Times print edition (1994-2010) and online Communities (2010-2014). Since 2014, he has been the Senior Business and Entertainment Editor for Communities Digital News (CDN). A former stockbroker and a writer and editor with many interests, he served as editor under contract from the White House Office of Science and Technology Policy (OSTP) and continues to write on science and business topics. He is a graduate of Georgetown University (BA, MA) and the University of South Carolina where he was awarded a Ph.D. in English and American Literature and co-founded one of the earliest Writing Labs in the country. Twitter: @terryp17