Fears about another financial meltdown in the United States are growing after commentators and lawmakers blamed the diving stock market on Donald Trump’s economic agenda.
#TrumpRecession topped Twitter’s trending list on Wednesday after the Dow plummeted 700 points. Users blamed Trump’s agenda as well as his reckless trade war with China.
“Why did the Dow drop over 700 points this morning and why is #TrumpRecession trending? Because the yield on the 10-year Treasury note broke below the 2-year rate,” tweeted Rep. Ted Lieu (D-Calif.). “This inverted yield curve has historically signaled an approaching recession.”
The inverted yield curve, which by the way has been a predictor for every major recession over the past five decades has sparked warnings from economists that a major economic downturn may very well be right around the corner.
Wajahat Ali, a contributing op-ed writer for the New York Times, used Twitter to rattle off several of Trump’s failed promises that preceded fears of another economic crash.
“Trump promised to eliminate the debt in four years; he increased it,” Ali tweeted. “He promised to win the easy trade war with China; he didn’t. He promised Mexico would pay for the wall; it won’t. His tax cuts were going to trickle down and spur the economy; it didn’t. #TrumpRecession.”
David Frum tweeted, “Trump inherited a thriving real estate company from his father and bankrupted it. He inherited a strong economy from Obama and steered it straight to severe recession.”
Politico reported that an anonymous senior White House official stated on Wednesday that “there is no recession coming” despite all of the warning signs, but economists and other analysts are not nearly as confident.
Chris Rupkey, the chief financial economist at MUFG Union Bank, told the Washington Post that “yield curves are all crying timber that a recession is almost a reality, and investors are tripping over themselves to get out of the way.”