U.S. stocks dropped Wednesday following news that the economy skidded to a near halt in the first three months of the year, battered by harsh weather, plunging exports and sharp cutbacks in oil and gas drilling. Stocks stayed lower after the Federal Reserve downgraded its assessment of the economy and kept its key interest rate unchanged. The overall economy grew at a barely discernible annual rate of 0.2 percent in the January-March quarter, the Commerce Department reported Wednesday. That is the poorest showing in a year and down from 2.2 percent growth in the fourth quarter.The IMF, too, a few days ago predicted growth will be negligible in the next year.
Since presidential elections are usually decided by the economy it'll be very bad news for Hillary Clinton and Democrats in general if the economy is in recession during the campaign.
It's good that Bernie Sanders, who they are calling a Democratic Socialist now, will be in the race because it'll mean the media has to report some of what he says. His class based rants will help raise class consciousness. His message of income redistribution through government sounds pretty radical now but it's only what a mainstream Liberal Democrat would have said 30 years ago.
His presence will also mean Hillary has to sound even more populist than she's been sounding in the first days of her campaign. Her and her people have been counting delegates for months and know the liberal wing of the party has a lot to say about who the nominee is.
Deep inside of Hillary there's still that crusading, caring, traditional Liberal. Then she opens her eyes, puts her feet on the floor and checks her cell phone.
Trouble is coming.