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Literally the moment Trump won I pulled all of my investments off of the stock market.
I just knew shit will hit the fan. Here I am not losing 10% of my savings because of the crazy cheetos man and his crazy stupid nazi sponsor
For now.. Only a matter of time until this trickles out from stocks and into salaries, prices, benefits, etc
Shoots market in the dick
“Don’t worry folks, all part of the plan”
Puts bandages on market
“There, good as new”
raises fear that confidence in America is fading
Just now that fear is being raised?
I mean they voted for a criminal. So yeah.
Fading? Shit's gone, dog.
They mean the rich fucks. Not me and you.
I know that my quality of life is likely to tank in the coming years, and if it doesn't it is because I got lucky where others didn't, but damn is it hilarious seeing how fucking stupid centrist business bros and tech people are in the U.S. right now, they are JUST NOW realizing the boat is sinking, when only half of the boat is still above the water..... it is fucking hilarious honestly and I don't take joy in this happening, I mean I do, but I am not happy it is happening I am rather so sad that if I don't laugh about it all I will do is cry.
This is arguably bigger news than the stock market.
It definitely is. If bonds don't sell, or at least no longer sell cheap, then the US might get bigger problems with their budget.
If US Bonds are no longer the de facto safe haven asset...
The USD is no longer the world's de facto reserve currency.
That means that even if all the tariffs were rescinded, Trump croaked and somehow JD Vance took a 'be at least somewhat more competent and less stupid' pill, and never reinstated them...
Well it would mean the dollar would crash against other currencies, we wouldn't be able to import anywhere near as much, and US international debt payments as a percentage of the yearly budget would climb fast.
... And then that could spiral into both massive austerity at home, and/or 'lol we are defaulting on our international debt' either by formal declaration, or... basically hyperinflation.
That means that even if all the tariffs were rescinded, Trump croaked and somehow JD Vance took a 'be at least somewhat more competent and less stupid' pill, and never reinstated them...
It's too late for that. The US has shown that any appearance of stability can be upended at the whim of whatever singular person is president at the time, and there are no systems in place to prevent that. The idea of "checks and balances" has been shown to be a lie.
Trump signed a trade agreement with Canada and Mexico last time he was president and immediately violated them at the start of this term. He's been constantly back and forth on tariffs with no warning. The word of the US has become completely worthless.
It doesn't matter if all Republicans suddenly realize "this is bad", remove Trump, and put someone stable in his place. The world had been shown that regardless of how stable the current president is, in 4 years the citizens could vote for a complete idiot (and I remind you Trump did win the popular vote. The citizens voted for this) and the market is in turmoil again.
Other countries aren't unstable idiots of course and aren't going to tear up existing agreements (because they value stability) but they sure as fuck won't be renewing any contracts (at least not without far less favorable terms for the US and escape hatches incase another idiot is put in charge) and will be making contracts with other nations instead.
Trump has killed the US and a financial superpower, the US just doesn't know it yet. It won't be felt until existing contracts expire and new ones are signed.
republicunts plans to finance rich people tax cuts with additional debt in shambles
USD denominated bonds are by definition 100% exposed to the USD and it has been falling consistently (with but a single dead cat bounce) against other major currencies since Trump took over.
International investors are probably avoiding the Dollar (and hence Dollar-denominated assets) in favor of other currencies.
This would also explain why Gold keeps on beating records almost daily: it's sort of a "traditional" currency hence benefits from outflows from major currencies.
If this turns into the end of the Reserve Currency status for the USD, expect massive problems in the US with Inflation and servicing the massive US National Debt (if Treasury auctions have lower demand, Treasure yields have to go up in order to sell them, which is equivalent to say that interest rates on US Government loans go up).
Which makes sense to all of us who see Trump as a Russian asset who's goal is not to cripple America but to destroy it. This is the end game and why Americans need to really ramp up their protests. This is the literal death of America we are witnessing as killed by Russia (and probably China too)
killed by Russia
And don't forget tech-bros like Elon Musk.
And remember he doesn’t have to be an official asset, merely being someone useful to them effectively does the same thing - with deniability for the Russians
When US policy can change in hours, based on the whims of a madman, it’s not exactly difficult to see why people lose faith in that stability. Investors want long term stability, and right now things are complete chaos.
Nothing will meaningfully improve until the rich fear for their lives
I can heartily say as an American I have no faith whatsoever in this country and wish all the best in the world to the Canada-Europe-Japan conglomerate to be the only possible beacon of hope on the planet.
They (trump, republican toadies billionaires ,etc) have no faith whatsoever in this country either. that's why they're grabbing everything they can, selling the country for parts and fucking off to Greenland.
I guess I picked a bad time to stop huffing glue.
Oh come on, "Freak" sell off makes it sound like there's some mystery as to what caused this when it's blindingly obvious what the problem is here. The markets, and far more importantly all decent and rational people throughout the world, won't and shouldn't have any confidence in anything as long as Donald Trump is president. The only thing that starts to fix this mess is his resignation or impeachment (and that is only a start, investigations criminal charges and sentences amendments to laws etc. all need to happen too).
I sold 98% of mine.
now I'm diversified across Europe and Asia.
not great, but what choice do I have?
It's not really a "freak" event when the causes are blatantly clear and self-inflicted.
Google searches for stable foreign bonds skyrockets
If ya'll want another layer of irony to all this:
George Soros initially rose to general public fame/infamy with large bets against British Pound in 1992, that effectively defeated the Bank of England's attempts to stabilize the currency, resulting in its devaluation, and something like a billion $ profit for Soros.
Fast forward to now, and Trump supporters have spent the last 5 or 10 years acting like Soros is secretly the most underhanded and influential 'world controller' bogey man that exists, and they blame everything they don't like on being funded by him... despite pretty much all of his charities and funds and causes he donates to being publically available knowledge... and despite Soros being a fairly small fish in the modern ocean of much, much more wealthy and infuential corporations and individuals.
... So, now, Trump very well may have done basically the same thing as what Soros did 3 decades ago: force the devaluation of the USD and cause economic mayhem, but... at a much, much larger scale than Soros did.
The Trump supporters have utterly and entirely lost their own plot, that they themselves mostly fabricated.
Soros gets blamed not because he is a democratic billionaire, but because he's a [[[certain kind]]] of democratic billionaire.
There’s a reason for that. Maybe if all those well-off bankers hadn’t thrown in with trump in hopes of deregulation their portfolios would still be slowly climbing up with the DJIA under a democrat instead of flopping around like a fish out of water under trump.
As a guy who thought about buying bonds recently and decided to go to gold instead, my thinking was that Trump and/or Elon could definitely make some attempt to steal/divert treasury bonds, hold bonds hostage for some change he wants, or some other fuckery. The US can't go bankrupt - so long as you can trust the leaders to do the most basic rational things. But you can't trust them to do that right now.
If the US loses it's Reserve Currency status because too many international investors are existing it, more printing will directly translate to Inflation.
So whilst technically the US can't go bankrupt, it most certainly can end up with Hyperinflation and all its problems if the printers start going full steam (metaphorically speaking, since nowadays most currency is digital) to stop the bankrupting of the US following Trump/Musk fuckery and foreigners (as well as larger local investors) refuse to buy those new Dollars and actually accelerate their the exiting from positions in USD (and that's not just going to be cash positions but also USD-Denominated assets such as Stocks, Bonds and Treasuries) which seems to have been started happening already judging by news such as this.
I’ve stopped assuming these guys will account for facts, nor that they keep the “no” finance guys around when making decisions.
I think 100% of decisions are made by Trump in the Oval Office based on the object permanence of the last person or tweet he’s seen.
"The fear is the U.S. is loosing its standing as the safe heaven" ? Looking at it from the E.U., it's already gone with no going back. The U.S. looks more and more like a self destructing failed state, that only needed a little nudge from foreign troll factories.