Biden & Sanders
Dear Rundown Reader,
For about a week, we’ve discussed the hallmarks of socialism and communism. A couple contributors today think — in one form or another — it’s already here.
“We have been socialists since Franklin Delano Roosevelt enacted the Social Security Act of 1933!”
Another reader says: “Our schools have long since been commandeered by leftists, who have distorted our country’s history and hidden the history of socialism and communism from our youth.
“The promise of ‘free stuff’ is very seductive to someone who is unaware of the dangers and who believes the government is our devoted and faithful friend.
“Those of us who know history are only too aware of the dangers of big, overreaching government.”
That jibes with a recent poll at YouGov that found 70% of millenials in the U.S. would be somewhat or extremely likely to vote for a socialist candidate… which would explain why Bernie Sander has been a frontrunner for the Democratic Party nomination.
What it doesn’t explain is Joe Biden coming from behind to win 10 of 14 states on Super Tuesday. What’s your take?
Send your opinions to, TheRundownFeedback@SevenFigurePublishing.com.
Your Rundown for Wednesday, Mar. 4, 2020
Fed Can’t Save the Economy
The Fed cut its benchmark interest rate by a half percent Tuesday morning, marking the first time the central bank’s done so, between scheduled meetings, since 2008.
Let’s just say the rate cut didn’t have the intended effect.
Initially, the Dow floated up a couple hundred points… but then the bottom fell out — to the tune of 800 points. As for the 10-year Treasury, it was a history-making day with a yield below 1% for the first time ever.
And by the end of the day, all three major indexes were down almost 3%.
Maybe the financial conflagration had something to do with Fed chair Jerome Powell’s press conference when he said the coronavirus would have far-reaching, long-term economic consequences. Or something to that effect.
(Interesting since the spread of the novel virus has yet to be classified a pandemic.)
According to Chris Rupkey of MUFG Union Bank: “Moving between meetings with a bigger than normal interest rate cut looks like Fed officials are panicking as much as stock market investors did last week.
“They did not need to be so aggressive and the Fed under Powell keeps responding wrongly in our view more to the financial markets than they are to the broader economy,” Mr. Rupkey concludes.
We couldn’t agree more. We’re not fans of the Fed’s meddlesome “quantitative easing;” it didn’t work in 2008 to stave off a recession. And we wouldn’t expect it to work now.
But, hey, the Dow’s up 500 points this morning! And this is rich: Headlines are attributing the rally to Joe Biden’s Super Tuesday win. What?
Market Rundown for Wednesday, Mar. 4, 2020
S&P 500 futures are up 48 points to 3,051.
Oil’s up 2.3% to $48.28 for a barrel of WTI.
Gold is down $3.30 per ounce to $1,641.10.
Bitcoin’s down $5.21 to $8,786.15.
Send your comments and questions to, TheRundownFeedback@SevenFigurePublishing.com.
We’ll be back Friday. Have a great day!
For the Rundown,