A quick reminder for fans of Donald Trump’s business acumen, and who believe he has an instinctive feel for what it takes for a healthy economy . . .
Trump, in March 2007, discussing the economy:
TRUMP: Well, the U.S. economy is okay, but very, very fragile. Interest rates have to start being lowered. I think that Alan Greenspan, who is a friend of mine and a great guy, came out last week and he made the statement. But I believe interest rates are getting too high, and if they are not lowered, your housing markets will really start crashing pretty big. And I think they will be lowered. Now, as far as the housing market, I think it’s okay. It’s not terrible, it’s not great — it’s okay. It was great two years ago; now it’s fine, it’s solid.
Some might find the terms “very, very fragile” and “okay,” ”fine,” and “solid” contradictory. In fact, U.S. housing markets were approaching a deep plunge at that moment:
Through late 2007 and 2008, the Fed did what Trump suggested, cutting rates ten times in 15 months, to the lowest rate on record.