Fear that Trump tariffs will spark recession wipes out more than $2 trillion in value from US stocks
Fear that Trump tariffs will spark recession wipes out more than $2 trillion in value from US stocks
U.S. companies had trillions of dollars in value wiped out Thursday after President Donald Trump slapped sweeping tariffs on foreign imports.
2 trillion, so far!
Entire year of gains lol
He did as he promised, financial liberation.
From the poor
It's just utterly infuriating and miserable. This isn't a Nelson-Ha-Ha.gif moment.
Ordinary Americans will suffer for this. People will lose their homes, their jobs, their lives. And ordinary people in other countries will suffer for it too - job losses for companies who majorly sell to the US are inevitable. Car companies in the UK (Landrover, Aston Martin, Jaguar, etc are already making noises about job-cutting).
And the vastly wealthy will benefit, as they always do, by picking up those bargain basement stocks which will, eventually, become valuable again. And it's the plan. It's always the plan. Transfer wealth from the many to the few. Brexit was a cash grab. Trump is a cash grab.
by picking up those bargain basement stocks which will, eventually, become valuable again.
Everyone can do this. Even if it's only $50. If you have nothing, you gotta start somewhere. I'm investing every penny I can spare right now.
And the vastly wealthy will benefit, as they always do, by picking up those bargain basement stocks which will, eventually, become valuable again.
I don't think that's correct.
Imagine, if you will, an uptick in vandalism on Tesla Cybertrucks. Insurance companies notice and increase the price of insuring them. The used car market price for those vehicles goes down, with fewer people wanting to buy vehicles that are more expensive to insure and are more likely to be vandalized.
Is that price drop a dip that a savvy investor can take advantage of? Is there an investment case for buying used cybertrucks and then hoping that Elon's stink fades? I don't think so. The value of that thing has permanently decreased.
Look to American soybean farming. Trump put tariffs on China in 2018, and China retaliated with tariffs on soybeans, among other products. Brazil stepped in and started exporting a lot of soybeans to China, and maintained that market share even as the tariffs were canceled. Basically, American farmers never recovered. Buying up all that farmland for cheap wouldn't have done anything because the new owners of that land can't benefit from some kind of higher profits from that land.
Sometimes things drop in price because they just become less valuable. I think that's what's happening with American stocks right now, because the damage that is being done is hard to reverse.
Do I remember correctly that trump was elected mainly on improving economy?
That's what I heard people said, but I suspect it was more the anti-immigrant, christian nationalist, white supremacist, misogynist not wanting to out themselves so they said things like the 'price of eggs' or 'the economy' instead of 'I'm scared of everything I don't understand like diversity and worker solidarity' or 'i don't want to be treated the way I treat minorities'.
That's what they kept saying...
I'm so glad that as a millennial I get to live through so many different historic times.../s
Would you prefer to live through the world wars or the cold war? Or any other time in history?
How many once in a lifetime economic events is this now?
Didnt your hobo turned ccc worker turned GI great grandpa have the coolest life. Your gen Z sibling gets a similar experience.
O'Doyle rules!
Who knew that Tarriffs, a historically bad idea when used broadly and heavily, would be bad for an economy propped up by massive consumer debt and a stock market existing solely on speculation/over valuation?
"...and right here is where I'm going to manufacture the worst economic crash since the literal Plague."
Looks like he's working towards a fire sale.
Mr Miller told me this was a REALLY GOOD IDEA!!!
Plague massively increased economic situation of peasants in western Europe.
$2T so far
13 hours later and I had the arrogance to think I had an original comment.
And you italicized it! Well done!
...and cancelling 500k work visas just few days ago, that should hit the economy too
And everyone being deported as well. Even most of the illegals paid into the economy. Now we're taking that away and spending who knows what to create chaos.
It hits even harder then that, I know a family of truckers that never stops working, but they're Lebanese and not natively born yet are all U.S. citizens, so for now they've all decided to finally take time off untill this blows over, leaving an even bigger hole in our economy to fill for natural born citizen.
As bad as this is, it can still get a lot worse. The market seems to be pricing in a high probability that Trump will reverse course. If the tariffs stay on for at least a few months, there will certainly be a recession, probably a depression, and possibly social unrest that will take decades to fully recover from.
When things really crash is when the rich will decide to pay their cash and start buying up shit, and then we will think the economy recovered but really all that happened is another wealth redistribution in the wrong direction
Maybe but it could crash anyways. JP Morgan tried to stabilize the stock market in 1929 by buying up stocks, but it collapsed anyways and led to the Great Depression.
As an impoverished no body with nothing to lose in this country, I’ve just been laughing my ass off.
This is bad for us too. A cratering stock market slows down hiring which depresses wages and makes it harder to find work.
Yeah, it’s absolutely fucked. My laughter comes from a place of being glad that some faces got ripped to shreds by leopards and then also because it’s the only thing to keep my mind from totally fizzing out from this mountainous heap of daily shit we’re subjected to. And then the rest of the world is getting dragged into it so fuck. Just fuck.
I'd argue that's reversing cause and effect. A cratering economy on Main Street often gets reflected as a crash on Wall Street.
Sometimes the outcomes diverge. One common analogy in finance circles is that the stock market is like a hyperactive puppy on a long leash being walked by a slow owner whose gradual movements trend in a particular direction while the puppy erratically moves back and forth near that owner. Maybe it's some kind of hype or panic moving markets in a way that's uncorrelated with the underlying economic activity. Or it's a specific play on a specific type of financial instrument that has become untethered from a thing it used to be tightly wound up with. Many financial panics happen when correlations between things break down, and all the financial engineering in a particular type of product relied on a bad assumption so that it spreads to other financial products.
But in many cases, they move together because the people buying and selling stocks feel sentiment driven by actual economic fundamentals.
Let's cancel student loans too, that will own the libs!
It was worth a shot.
If the economy crashes, people won’t be able to pay their loans, which I sincerely hope will fuck up a billionaire or two.
Time to recycle some things...
Better quality version (I think)
"1,000,000 men out of employment"
Certainly showing it's age there. You'd never see unemployment statistics announced that way today. Not even sure if this is because of how "men" used to be used to refer to people in a more general way, or because women didn't make up a significant portion of the workforce (or because they didn't care about that demographic...)
"Net loss of gold in exports" too... Usually we see GDP used for that kind of statistic now
we're in a recession right now. this is the beginning of one. people mass selling off their stocks to take money and that shakes all markets down the river is exactly a recession start. get ready folks.
He did that in theee month. Only 4 more years to go
A couple of Trillion dollars here, a couple of Trillion dollars there. Pretty soon it will add up to real money.
"I'll just put that with the other fire"
The Powers That Be aren't going to tolerate this for very long.
Trump is fucking with their money.
Nah. Rich people profit from recessions and other crisis. They have enough money to buy everything and then are even richer afterwards.
That is why everyone lets Trump do whatever he likes.
Nope. This is more like The Oligarchs Who Came to Regret Supporting Hitler or, in The Dark Knight Rises, the billionaire who finds that funding Bane's rise to power doesn't actually give him any power, or another business dude learning that working with Bane doesn't even save him from the movement itself.
The billionaires thought they could buy influence and just get the things they want, while stopping Trump from getting what he wants. For whatever reason, Trump is a true believer in tariffs, so that's what giving him power will result in.
Stocks aren't real resources, they are imaginary potential resources. Stocks market fluctuations are important only as long as people think they are. Like a king who is a king only because his subjects consider him a king.
Tell that to the people living on automatic withdrawals from their IRA accounts 🙄
Some stock have value because the company is profitable, solid and is making money. I am no investor but Coca Cola I would imagine fit the description.
Neither are money, but we're still not a communist society so we still consider it one.
If you want stocks to not be important, phase out public companies.
The same is true for fiat currency.
Oh, so my 401k losing money isn't real? Damn, that's a relief.
C'mon keep it going!