Wall Street is going toward a straight free fall — no one knows what’s going to happen with the market

Talk to enough Wall Street executives and you come away with something very troubling: No one knows what’s going to happen with the markets and, by extension, the economy — and that’s scary.

I know what you’re saying, these guys really don’t know what’s going on, otherwise they would have seen the financial crisis of 2007-2008 months before it happened.

Truth be told, they saw it coming, but most were too terrified to talk about it, while others, like hedge funds, didn’t want to draw attention to their market bets.

No, this time it’s different.

Market forecasts are all over the place because of huge policy mistakes: spending, money printing and many other things that confound their usual analytical tools.

The politics and policies of both presidential candidates add further confusion.

In other words, now is not a great time to be an economic forecaster, or even an American investor, consumer, or worker trying to plan for the future.

And we can thank the clowns who set public policy and did some truly crazy and unprecedented things.

Yes, the ruling class we have in this country is perhaps the stupidest that history has ever had to offer.

Again, this is bipartisan idiocy, Wall Street types will tell you, going back at least two decades, though the more recent generation of so-called experts acting like idiots is even more troubling because the stakes keep getting higher.

Former (and perhaps future) President Donald Trump appeared steady and confident facing a faltering and outmatched Joe Biden in Thursday’s debate.

But Trump is no good either.

Consider that he has consistently pledged to build a wall on the southern border to prevent mass migration and its strain on the welfare state, but because he has spent much of his four years in office engaging in petty squabbles, he has never gotten around to it.

Biden, meanwhile, spent nearly four years as a barely responsive leader of the free world (as his debate performance further demonstrated).

He has made the immigration catastrophe worse because he is afraid of alienating the progressive, open-border base of the Democratic Party as the country’s social fabric frays under the strain of imported poverty and of serious crime.

But it’s the shaky positions on both sides of the economy that really give forecasters the shivers.

Trump added about $8 trillion to the national debt during his four years in office, and not all of that can be blamed on COVID relief measures and lockdowns that stalled growth in his final year in office.

Before that, he did big things like cutting taxes and reducing regulations, which boosted things like employment and wages.

It was a time of peace and prosperity, perfect for getting entitlements in order (i.e. future Social Security costs and more) and putting an end to the federal government’s boat-like mess.

Yet he did the exact opposite.

When COVID hit, he continued spending until almost his last day in office, when it became clear that the economy was rebounding and the pandemic was about to end.

Trump is proposing the same thing if he is re-elected, which means a whole new level of uncertainty to consider given the magnitude of debt currently on the books, which we will at some point have to repay.

Biden’s Spending Spree

Speaking of debt, its size is getting bigger and more problematic because when it comes to spending, Sleepy Joe is Trump on steroids.

He promises to double down if re-elected: student debt relief, more wasteful spending on green energy boondoggles, the collapse of a questionable industrial policy of electric vehicles everywhere and chip manufacturing subsidized by the government are just the beginning.

If he is replaced (a real possibility after his debate), whoever speaks will propose the same policies without the verbal inconsistency.

Recently, the media has been buzzing (no doubt at the behest of Sleepy Joe officials) that Trump has increased the debt more than Biden, but Wall Street pros tell me that’s a bit of an apples-to-oranges comparison since the economy largely shut down in Trump’s last year in office.

When Biden took office with the economy on the mend, he went crazy with stimulus spending.

The pros point to a neglected statistic.

By early next year, the Congressional Budget Office projects that debt growth under Biden will likely equal or exceed that under Trump.

It now stands at near-historic levels, 120% of the entire U.S. gross domestic product.

That’s down from the peak of the pandemic, but not nearly enough to really matter.

What happens if we have to spend more because of the war?

What if our creditors decide that the U.S. dollar is too commodified because of all this spending?

Biden has infused our economy and culture into a state of hyper-charged enlightenment through his appointments to the regulatory state.

Trump is seeking revenge on a political party that is literally trying to put him in jail.

Wall Street is now tearing its collective hair out trying to introduce these variables into its computer models, with lots of crazy stuff that has created a black box economy where forecasting is almost impossible.

This is why smart money is so scary.

Charles Gasparino is the author of the upcoming book “Go Woke, Go Broke: The Inside Story of the Radicalization of Corporate America.”

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