They've been spinning it:
1. as a buying opportunity
2. overall the market is still up vs 2 years ago. It's lost ~1/2 it's gains but it is still up
3. short term pain for long term gain
Donald Trump personally chose the formula used to determine country-specific tariffs, according to the Washington Post.
Despite being presented with a variety of options to determine tariff rates for specific countries, the president ultimately chose the simple formula based on the trade deficit with each country and the total value of its US exports, the outlet reports.
Those who presented various options included officials from the White House National Economic Council, the Commerce Department, the Council of Economic Advisers and the Office of the United States Trade Representative, people familiar with the matter told the Post.
They added that “numerous more sophisticated approaches were developed than the one Trump selected”.
Since Trump’s reveal of his tariffs, which have sent shockwaves across the global markets, economists have been stunned by what they call a formula created by “willing sycophants”.
“This is not serious trade policy or grand strategy,” Adam Tooze, an economic historian at Columbia University, told the Guardian.
“The boss hates trade deficits and his team of willing sycophants came up with a formula, however idiotic, that ticked the box,” he added.
__________________ "We are no longer living. We are empty of substance, and our head devours us. Our ancestors were more alive. Nothing separated them from themselves."
A US congressman was on Power and Politics (I think yesterday) and was talking about how the market dipping tanking was an emotional response. How he believes in Trump and how this is going to be a win win for the economy.
This is part of the transcript which completely contradicts himself about leverage while also wanting win win. When David Cochrane asked why people would trust the president to negotiate anything based on how hes violating the trade agreement he signed, it was met with this response
Quote:
I believe that president trump has shown that the US has a great deal of leverage, and he's intending to use that leverage to build up America. And I know that he's a shrewd negotiator. He knows that any negotiation has to come with the result of a win win.
Also shout out to David Cochrane, im a big fan of that podcast and hes balanced but challenges all perspectives. Guess im a bootlicker
__________________ I'm afraid of children identifying as cats and dogs. - Tuco
There is a part of me that feels economists really deserve this, collectively speaking.
They've been this exact type of idiots so many times in so many debates about so many topics against actual experts over my lifetime, and now it's their turn to sit powerless on the sidelines going "that's not how any of this works!"
They've been spinning it:
1. as a buying opportunity
2. overall the market is still up vs 2 years ago. It's lost ~1/2 it's gains but it is still up
3. short term pain for long term gain
They are ####ing morons
Millions of people are unretired as of this weekend.
And, as one analyst put it. This trade deficit strategy will work. If you make 300 million Americans so poor that they can't buy anything, the trade deficit definitely be gone.
The Following User Says Thank You to EldrickOnIce For This Useful Post:
Warren Buffett went on the record Friday to deny social media posts after President Donald Trump shared on Truth Social a fan video that claimed the president is tanking the stock market on purpose with the endorsement of the legendary investor.
The Following User Says Thank You to Nancy For This Useful Post:
They are ####ing morons
Millions of people are unretired as of this weekend.
And, as one analyst put it. This trade deficit strategy will work. If you make 300 million Americans so poor that they can't buy anything, the trade deficit definitely be gone.
Not to downplay the sheer stupidity of these tariffs and the knock on for the stock market, but is there a source showing that "millions are unretired as of this weekend"?
The drop since Thursday has wiped out basically all gains over the last 10 months (May 30th was the last time the Dow was at this level)... There's no downplaying the significance of that, but I fail to see how what amounts to a year-on-year flat ROI would wipe out entire retirements
Not to downplay the sheer stupidity of these tariffs and the knock on for the stock market, but is there a source showing that "millions are unretired as of this weekend"?
The drop since Thursday has wiped out basically all gains over the last 10 months (May 30th was the last time the Dow was at this level)... There's no downplaying the significance of that, but I fail to see how what amounts to a year-on-year flat ROI would wipe out entire retirements
I retired this week and haven’t gone back yet 🙂
Seriously though, this sucks, but last year was ridiculous which lessens the blow. Still, f*** the Cheeto and his minions.
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.
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.
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.
__________________
"A pessimist thinks things can't get any worse. An optimist knows they can."
Love hearing people like that Judge Janine I don’t even worry about my 401K. Of course you don’t you pig, you spend all your money on plastic surgery and alcohol.
You have to feel for those people nearing retirement.
my guess is they drop another 500 to 1000 next week, stabilize a bit as people hope it's bottomed out, maybe even a bit of a dead cat bounce and then drop hard again once prices in the US increase by 10% across the board in a month or so.
What people never factor in is all prices rise, even stuff that has no tariffs on because it's just a great excuse for retailers to jack up prices
