Talk About Tennis 2.0

ti-amie wrote: ↑Wed Apr 16, 2025 10:15 pm

ponchi101 wrote: ↑Wed Apr 16, 2025 2:10 pm The market already factored in the tariffs. I don't think we will see any more wild fluctuations until he says something really stupid again.

US Markets

SYMBOL PRICE CHANGE %CHANGE
DJIA
39,669.39 -699.57 -1.73
NASDAQ
16,307.16 -516.01 -3.07
S&P 500
5,275.7 -120.93 -2.24

Global investors are dumping a record amount of American stocks

Danielle Kaye of the New York Times reports on a recent Bank of America survey that shows global investors have dumped a record amount of U.S. stocks in the past two months. Trump insists that the U.S. has been bringing in $2 billion a day in tariffs, some of which he claims comes from his new levies, but, in fact, Lori Ann LaRocco of CNBC reported today that U.S. Customs and Border Protection says the U.S. is taking in only $250 million a day.

Leila Fadel of NPR reports that China used to buy more than half the U.S. crop of soybeans and now soybean farmers are gravely concerned they’re going to lose that market. At the same time, we are heading in the prime months for the U.S. tourism industry, and Bloomberg reports that a worst-case scenario by the Goldman Sachs Group Inc. estimates that the U.S. could lose almost $90 billion as foreign tourists stay away from the U.S. and boycott American products.

https://www.marketwatch.com/story/fund- ... s-807e3119

If Trump actually goes ahead and fires Jerome Powell — a man he appointed — the financial credibility of the United States will evaporate in five minutes. We’re not talking about a bad situation anymore, we’re talking about something outright dangerous.

The independence of the Federal Reserve is a fundamental pillar for maintaining inflation expectations (2% target) and labor market stability. Without it, markets lose trust, rates could spike uncontrollably, and the dollar’s status as a reserve currency might start to crumble.

What’s even more alarming is how little Trump seems to understand — not only about trade, where his ideas are already widely discredited, but even about basic economic expectations. He cites energy prices as a sign of lower inflation, completely ignoring the medium- and long-term expectations, which are clearly pointing toward a reemergence of inflationary pressure.

The idea that the Fed should be punished or politicized based on short-term price fluctuations is not just wrong — it’s borderline suicidal for an advanced economy. You can’t run a country like a casino. And this time, if he pushes through with this, the entire global financial system will take notice.