Fox News talk show host and conservative political commentator Sean Hannity's running ideological feud with former president Barack Obama isn't exactly a nascent phenomenon. Hannity, who published his book titled Conservative Victory: Defeating Obama's Radical Agenda eight years ago has no love for America's first black president. Keeping that opposition very much alive, Hannity blamed Dow Jones biggest intraday plunge on Obama.
In a rant on Monday's episode of The Sean Hannity Show, Hannity said that the historical 1,175 point loss Dow Jones witnessed on Monday was thanks to Obama who, it bears mentioning, left office on January 20, 2017. The conservative host said that Donald Trump's predecessor left behind a "weak" economy and "artificially cheap money."
Going on a full-length tirade, Hannity said, "Because the Obama economy was so weak all of these years we had just artificially cheap money. Now what’s cheap money? Cheap money is when you can borrow at ridiculously low rates. The era of cheap money at some point has to come to an end."
Hannity, who reportedly advises Trump on policy-making, went on to say, "The Fed has artificially kept the price of money down and the price borrowing down and now that’s going to come to an end."
The conservative talk show host did not mention the various times Trump has taken baseless credit for a prosperous stock market. At different points in July, August, November, and December last year, Trump gave himself credit for the stock market doing well. For instance, in an August tweet in 2017, Trump said, "Business is looking better than ever with business enthusiasm at record levels. Stock Market at an all-time high. That doesn't just happen!" In January this year, Trump tweeted, "The Fake News Media barely mentions the fact that the Stock Market just hit another New Record and that business in the U.S. is booming."
The Fox News host forgot to mention several key points. Firstly, it's critical to remember that stock market analysts have already been cautioning about a rise in inflation that would set Dow Jones' drop in motion. So, the steep fall on Monday wasn’t entirely unexpected. Secondly, some market strategists also blame rising wages as a "mechanical effect" contributing to Dow Jones' crash.
Most importantly, though, Hannity failed to mention that stock markets are terribly mercurial things. In simple words, stock markets are notorious for their unpredictability. Given their volatility, stock markets swing back and forth between soaring profits and crushing losses. Experts know this. In a conversation with NPR, chief economist for the PNC Financial Services Group, Gus Faucher, called Dow Jones' crash a result of a "changing environment." Faucher noted, "I think we are in a changing environment where it looks like we're going to have a bit higher inflation and so that has markets on edge. And I think volatility is likely to be higher in 2018 than it was in 2017."