So there's has, aside from the Vietnam situation, also been a bit of a knee-fall from the EU in that they're considering 0-0 tariffs. The Trump administration doesn't seem all that interested however. It seems he intends on crashing the market intentionally. Which is short term going to hurt all, including me/Europe (me and the misses decided today to stop the flex-lease contract of our EV in light of the recent market developments, and invest that into our own property).
Now i'm not an economist, and a fair bit of a moron when it comes to spending my money wisely (which is why i married a tax-advisor)... But there's a bit of a theory going the rounds that
@dmgtz96 already sort of touched upon, which might explain the method to the madness and I was wondering what ya'll
@Hensmon @SaltAcidFatHeatAcid etc. think of this.
It goes something like this:
Trump intentionally crashes the stock market -> This incentivizes/ pushes investors to move their money into safer assets like US treasury bonds -> This then (historically) makes the fed to slash interrest rates end- may. Which will ultimatly allow the Trump administration to refinance trillions of US national debt at much lower price/cheaply.
it also weakens the dollar and drops mortgage rates.
The people most affected by this are the 8 á 10% of americans, who own 90% of the stock market. the other 10% are owned by 40% of us citizens, most of which can afford to suffer a crash/won't go bankrupt on them.. .and 50% are currently in debt and rent instead of own.
if (and thats a big if)
this pans out the way as layed out... Trump will effectively pain the US richtest short term and handing it to the middle class via lower prices, whilst getting rid of a large part of the US debt (which right now is paying off more interrest then it does actuall debt)
www.instagram.com
www.ft.com
i at least always make my final decision near the electoral finish line.
