Well the left may be getting what they wished for. But do they realize that these are self inflicted wounds? Oh they have been telling folks how only corporations and the rich benefit under Trump. And many express such joy that the market has been in a free fall. But guess what? The corporations they are seeing lose value? Have employees. And those employees are you the people.
Look what happened Monday. Californians recognize any of the company names? The Dow wasn’t alone in negative territory Monday. The broad-based S&P 500 Index pulled back by 65.5 points, or 2.7 percent, to 2,351.10, and is down 15.7 percent for the month. And the Nasdaq Composite Index, which includes many of the Bay Area’s biggest tech names, gave up 140 points, or 2.2 percent, to drop to 6,192.92, and remain down by more than 17 percent for December.
Among local stocks, Apple shares fell 2.6 percent, to $146.83; Tesla tumbled by 7.6 percent, to close at $295.39 a share; Cisco Systems fell 3.8 percent, to $40.28; Hewlett Packard Enterprise gave up 2.7 percent, to finish at $12.27, and Netflix fell 5 percent, to close at $233.88 a share. But somehow the ongoing attacks on President Trump doesn’t sink into the thick skulls that this is an attack on themselves.
Here’s what CNBC reported yesterday. December’s ugly stock market is very bad news for California’s finances.
That’s because the state’s top 1 percent of personal income tax earners — roughly 164,000 tax returns — generate about half of the personal income taxes in California. A good chunk of the income from the wealthy comes from capital gains and stock options from companies in tech and other industries, meaning that even small changes in the financial markets can cause big swings either way in terms of the state’s collected revenues. “Revenue volatility is one of California’s biggest problems,” said Jon Coupal, president of the Howard Jarvis Taxpayers Association, a Sacramento-based nonpartisan group.
Look what happened in October. One month. California missed its state revenue projections in October of this year by 6 percent, or more than $412 million, when the S&P 500 fell almost 7 percent and the Nasdaq sank 11 percent — its worst monthly decline since the 2008 recession. The state’s personal income tax receipts came in 8.4 percent less than expected that month.
In closing if you believe in how goes California goes the rest of the country? You then will be in for a rude awakening. So just keep on hoping the market crashes and keep on trashing the President. Remember he will be the only one who can fix your mess. Take that to the bank.
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I have been writing on and off the past 46 years. First piece I ever wrote was my high school underground newspaper. A father of two twenty somethings. Happily married and presently living in Ohio.