President Donald Trump tried to pin this week’s inventory market slide in the face of a practicable coronavirus outbreak on Democrats. But the case he made to do that used to be nonsensical — even through his standards.
During a information convention on Wednesday that was meant to quell fears, Trump explained away the Dow Jones Industrial Average’s almost 2,000-point dip on Monday and Tuesday not first and most important by acknowledging fact — which is that buyers are spooked by using fears we’re amid the early degrees of a international pandemic — however via insisting that they’re spooked via the prospect of Bernie Sanders or Joe Biden becoming the next president.
“I suppose the financial markets are very upset when they appear at the Democrat candidates standing on that stage, making fools out of themselves, and they say, ‘If we ever have a president like this,’” Trump said, referring to the most current Democratic presidential debate held in South Carolina. “When they appear at the statements made by the human beings standing behind those podiums, I assume that has a large effect.”
But there’s a problem: The Democratic debate in query took location on Tuesday night, after American markets closed for the day. By then, the Dow had already endured two days of good sized losses — 1,032 factors on Monday and some other 879 factors on Tuesday. So Trump’s clarification for the market slide rests on a necessary misunderstanding of how time works.
If his claim about markets being spooked through the Democratic debate held water, you would’ve predicted the Dow to plummet once more on Wednesday. But it didn’t. It dropped just 122 points. There’s just no proof that Democrats are at fault.
Trump needs to escape duty
Trump’s clarification for the market slide might also have been absurd, but the factor used to be to reassure the American public that the broader coronavirus situation is below manage and that there’s no motive for panic in the markets or elsewhere.
But as Trump spoke on Wednesday, the Washington Post broke news of the first coronavirus case in the United States that doesn’t seem to be linked to tour to affected regions of the world or with known contact with anyone already infected with Covid-19, the sickness coronavirus causes. As my colleague Kelsey Piper wrote, that improvement “suggests the coronavirus can also now be spreading in the country, person-to-person — with this individual just the first to be symptomatic, are seeking for clinical care, and take a look at positive.”
Responding properly to such a public fitness crisis would be a venture for even the most able presidential administration, but as Vox’s Matthew Yglesias wrote, the Trump administration is in a uniquely awful position to reply to this one. The global economic system is absolutely picking up on the threat.
So there’s desirable cause to believe that the markets may also now not fully rebound anytime soon. There’s no longer a lot Trump can do about that, but it’s a trouble for him considering how a whole lot political capital he’s staked on the electricity of the Dow.
According to the Washington Post, privately, “Trump has emerge as livid about the inventory market’s slide” and “believes intense warnings from the Centers for Disease Control and Prevention have spooked investors.”
During his information convention on Wednesday, Trump praised the work of the CDC, however additionally said he is of the same opinion with conspiracy theories pushed with the aid of Rush Limbaugh and others who say the outbreak being weaponized in opposition to him.
Limbaugh, who was once granted the Presidential Medal of Freedom through Trump in the course of the State of the Union speech previously this month, has additionally in contrast Covid-19 to the common cold. While there’s a lot we don’t but be aware of about Covid-19, inclusive of its genuine morality rate, a recent paper from the clinical journal JAMA pegged it at 2.3 percent.
Standing next to Trump, Dr. Anne Schuchat, the main deputy director of the CDC, made certain to reward the “aggressive containment strategy” that Trump additionally touted, but additionally provided a greater sober assessment of the typical state of affairs than the president did.
“We do count on greater cases,” she said. “The trajectory of what we’re looking at over the weeks and months ahead is very uncertain.”