Quote:
Originally Posted by Delthefunky
The market can go down much further, imo.
A) A lot of people believe even before the election that a recession was on the horizon. Likely why Buffett ( what a legend ) sold nearly $350B in equities.
B) These Tarrifs will make it far, far worse. Even if Trump backtracks, which to some extent he will, a lot of damage has been done.
C) I can't think of a worse person than Trump to lead the US through a recession. He will likely introduce further policies and confusion which will worsen it.
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Yup, there is no just going back to how things were. There can't be a status quo ante bellum from this trade war. The egg can't be unscrambled, the camel's head is already in the tent.
It would be one thing if Trump was a normal politician and you could trust him, but the fact he changes his mind all the time, you just can't trust him to live up to his word. It's impossible to negotiate with people like that. The same indecision, extending deadlines, and unpredictability that somewhat protected the markets when the threats started (i.e. a lot of people assumed Trump was all bluster and wouldn't be that stupid), is the same thing that makes it impossible to go back to the old normal.
And it isn't just Trump. Even if he was deposed tomorrow, it wouldn't matter. Now that the world knows this is what can happen in America, you have to move forward under the assumption it will happen again.