Here's the thing: This crash has crushed the savings of hundreds of millions around the world. And, the most shocking thing about it was that it was self-inflicted by Trump and his stupid policies. They sucked $6 trillion out of the market, meaning that folks who have RRSPs/TSFAs/mutual funds or individual stocks are looking at big losses. Those who were close to retirement might need to work some extra years, while those living off of their savings now face the real threat of outliving their money. And for what? The "greater good of America?"
Here's the thing: tariffs could possibly be effective if Trump and company didn't say that countries could negotiate. That means, tariffs could disappear just as quickly as they were placed. So, if you are a company that used international workers to build your product, why would you bother spending billions to make a factory in Wisconsin? For all you know, the tariffs will be gone and it would still be cheaper for your product to be built in Vietnam or Bangladesh.
All economists, at least ones not sucking up to Trump, think tariffs are a horrible idea. Even the most conservative protectionist economists say this. We know historically that tariffs made the 1929 stock market crash and recession significantly worse. Where will this end?
I've been thinking about Trump for a bit. I honestly thought that the reason he was so focused on annexing Canada, Greenland and Panama was so he could actually have a presidential legacy. I mean, what did he honestly accomplish in his first term? Nothing besides ballooning the deficit. If he managed to successfully expand the US homeland, he would be remembered, just like Jefferson and the Louisiana Purchase, or Andrew Johnson for buying Alaska.
Now, it is VERY likely his legacy will be the economic hobbling of the USA, where he's already cut the social safety net...and has impoverished seniors and the lower/middle class. A market crash like this is going to result in massive job cuts, lower spending by consumers and it really won't matter if the Fed cuts rates to near zero. The uncertainty in the market is going to continue, and while I would not be shocked if some Trump insiders (or very savvy investors) have been shorting the market...most people have lost a huge chunk of their net worth.
As I hit sent here around 9:25 am, it will be interesting to see how far the market will tumble this morning and for the rest of the week. Trump has not offered any positive news, so it looks like he wants to see how low things can go. Heaven help our portfolios...
