Quote:
Originally Posted by Pierre
And made some a lot!!
Stock Market crash yesterday, stock market bounce back today……….
Some made some money over the last 48hrs.
That’s just an observation, nothing more.
|
It looks very much like when he realised he had to capitulate, he signalled just soon enough for his mates to play the market and make a small fortune. There have been MAGA bots all over Twitter ever since, trying to make out this is all part of a master plan.
However, Robert Peston’s analysis this evening is very interesting and well worth a read.
https://x.com/peston/status/19104089...56-Kgau3lzowJw
Quote:
He may not have acknowledged this to himself, yet, but the global financial tumult he caused - and has temporarily eased - has locked him in a fiscal prison.
Because, as I have been saying for 24 hours, he came perilously close yesterday to having caused such an extreme fall in the price of US government debt that it would have become prohibitively expensive for his administration to fund a large deficit - more than 6% of GDP - and also to refinance the almost $8 trillion of government debt that matures in the coming year (almost a third of America’s sovereign debt).
The point is he is totally in hock to the good will of bonds investors.
And when he announced his reckless roster of massive tariffs eight days ago he alienated them, because they feared he would tank the economy such that tax revenues would plummet and the deficit would balloon.
So they sold US government bonds, Treasuries, and the yield on the bonds - the de facto interest rate - soared.
Which is why Trump blinked, and put on hold the more extreme tariffs, except for the 140% on China, for 90 days.
You might think the worst part of this is the uncertainty he has created for businesses and investors for the next 90 days. Since no one in their right minds would make a major US investment till the final tariff determinations are made.
But the cancerous uncertainty is not the worst of it.
The worst of it is he has shredded any respect that overseas governments and investors might have had for America’s economic and fiscal competence.
|