Dean Emeritus Terry Connelly of the Ageno School of Business recently published an article for the Huffington Post exploring the ways in which a market downturn may benefit the media, political candidates and speculators.
Using the example of CNBC, whose reporters are prohibited from owning individual stocks, Connelly points out that these reporters “would love to see [the current Presidential administration] embarrassed by a market crash. This could, at least for a short term, help the network’s [declining] ratings.”
Connelly also illustrates his point with the example of Donald Trump, who has spoken extensively about the dangers facing the U.S. economy, despite marked growth in the gross domestic product. A crash, notes Connelly, would validate Trump’s extreme views on the slowdown of economic growth.
Federal Reserve Chair Janet Yellen, Connelly notes, “has made quite clear [that] multiple… strong jobs reports will [allay] transitory deflation worries and allow the Fed to get the first rate rise of 25 basis points over with by year end—even as early as its October 28 meeting.”
Connelly, who holds a law degree from NYU School of Law, has 30 years of experience in global corporate strategy and investment banking. His specialty is the impact of politics on local, national and international economies, with a focus on the U.S. banking industry and shifts in the current worldwide economy.