3 reason why the Stock Market is dropping

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Video Creator’s Channel BlazeTV

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I Want To Talk To You A

little bit about the stock market Yesterday it plummeted. Some people are saying that this is it This is act. I don’t think it is I think this is a natural correction. I don’t think this is the big crash, but I want to. I want to go over all of the ins and outs.

  • invest
  • investors
  • fed
  • market
  • stock

The First One Wages Business Expansion.

Those things are going up which means the company’s profit margins are going down that is a sign for investors to go okay. They’re not gonna make as much money so I’m not going to invest so much because their profit margins are going down that’s normal. The next thing the rising interest rates we are looking at for Fed hikes this year plus the amount of money that is going to be spent because you’re getting a raise you have a tax cut. The companies are or repatriating about two trillion dollars that they had offshore and bringing it back in the Fed will raise the interest rates and that’s spooking the market.

The Third One Is What Really

bothers me scarce capital now what does that mean there’s scarce capital for one reason that we’ve never seen before and that is our government spending the government is borrowing a trillion dollars of money. It’s the largest ever it’s like a eighty-four percent increase who’s buying that remember China sent out a warning. We’re not buying your bonds anymore and then they quickly said yeah yeah yeah we’re fine we’re fine but they’ve dramatically slowed. the amount of bonds that they’re buying so who’s buying them Japan look at the condition. Japan is in let’s say there’s some friend of yours and you’ve loaned them an awful lot of money for their business.

Now Theyre Starting To Become Reckless And Everything

else, but you’ve got so much money into it. He comes to you and says hey you know I’ve got to borrow some more money and you’re like dude. I don’t have much more money well if I go under I can’t pay you back now imagine the conversation that you have with your wife Honey. He’s going under we’ve got to give him more money. If we don’t were gonna really lose an awful lot.

So You Have That Conversation You Give Him

one or two more loans and then he comes home and he’s got a brand-new car and he’s bragging about. And you’re like dude What are you doing? He keeps spending money like on stupid stuff that’s America and the rest of the world. The United States government is now in competition for a trillion dollars. Would you rather have the United States government have that trillion dollars, so they could spend it or businesses borrow that trillion dollars which you’re not on the hook for and let them expand and hire new workers and create new stuff.

Id Rather Have The Business Have That Trillion

dollars than the government. Our federal debt will be at least twenty-three trillion dollars by the end of this year. If we don’t get our federal spending in order we do not make this corner you cannot reduce taxes and increase spending especially after you have printed four point six trillion dollars something the world has never ever ever seen you.

  • invest profit margins going
  • tax cut companies repatriating trillion
  • bringing fed raise
  • market really bothers scarce capital
  • thing rising rates looking fed

Summary

Some people are saying that this is it This is act. I don’t think it is I think this is a natural correction. I want to go over all of the ins and outs. The companies are or repatriating about two trillion dollars that they had offshore and bringing it back in the Fed will raise the interest rates and that’s spooking the market. The next thing the rising interest rates we are looking at for Fed hikes this year plus the amount of money that is going to be spent because you’re getting a raise you have a tax cut. The third one is what really bothers me scarce capital now what does that mean there’s scarce capital for one reason that we’ve never seen before and that is our government spending the government is borrowing a trillion dollars of money. Japan look at the condition. The government is starting to become reckless and everything else, but you’ve got so much money into it, but it’s starting to get so much into it. It’s like a…. Click here to read more and watch the full video