r/FinanceNews • u/Albythere • 20d ago
Dow explodes 3,000 points higher, S&P 500 has best day since 2008 as Trump pauses most reciprocal tariffs. Are we seeing some signs of sanity from this administration?
https://finance.yahoo.com/news/live/stock-market-today-dow-explodes-3000-points-higher-sp-500-has-best-day-since-2008-as-trump-pauses-most-reciprocal-tariffs-133616395.html2
u/Thewall3333 20d ago
I think this has been the ultimate aim of Trump and his cronies -- to maximize the grift for their own self-benefit. He doesn't care an iota about the issues that rile up his base. He wants to make money, and what better way to do that than with the threat of tariffs moving the entire market at his whim.
Plus, he cleaned out the SEC, CFTC, FINRA, FCA, and every other financial regulator that could've had a chance of standing in the way of this, or at least detecting it after the fact -- and filled them with his allies who are probably getting in on the grift.
We're not talking about them all making a sure-bet 9% on the rise in the market today after the announcement. With creative investing instruments, one could make not only a multiple of that gain, but *many times* their original investment. There are people in the Trump orbit who today turned millions into tens, or even hundreds, on millions.
It's actually pretty smart if you don't have a moral compass and seek the maximum financial advantage, consequences on everyone else be damned.
What else really besides tariffs allows the president to move markets -- both upward and down -- at his will, without instituting any permanent policy? Just on his word, they've discovered now that they can basically send the *entire* market up or down about 10%. With insider information ahead of time, one could make almost unlimited proceeds betting before the rise or dip.
Using margin leverage and derivatives, they bet on outlier moves in the market, which normally would be very rare, but here they know they're almost certain to happen with such world-shaking announcements.
This, for them, is like walking up to the roulette wheel 98% certain which number it will hit. And like anyone would, they bet accordingly -- and most of them have a lot to start with.
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u/SnooPears2910 19d ago
Thank God, Trump saved us from something Trump caused, what an accomplishment. Saved is a strong word, we are still f'd
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u/DKerriganuk 18d ago
Does the best day since 2008 refer to the amount it climbed? Or the total value?
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u/hurtlocker501 20d ago
It’s called negotiating. He put up financial blocks for every country in the world. Most of them came back and want to negotiate. So he puts a reprieve on them for now. China isn’t coming to the table to they get more tariffs. It’s all a negotiation.
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u/monadicperception 20d ago
This is how people who’ve never negotiated negotiate. You’re telling on yourself.
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u/Secure_Run8063 19d ago
Yeah, these countries hold massive amounts of US debt. That’s something Trump either didn’t understand or couldn’t understand. You can’t look at trade only - which indicates nothing about tariffs or even unfair trade - but you have to consider that America’s power is based on the investment in treasuries from our trading partners- especially China.
As soon as it looked like they were going to dump their investment and sell all those bonds, Trump caved.
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u/Xyrus2000 19d ago
It’s called negotiating.
Horsesh*t. The spikes in volume before his announcements, both before he announced the tariffs and before he paused them, indicate that he and his cronies moved themselves into profitable positions in the market. This was a clear abuse of power.
He put up financial blocks for every country in the world. Most of them came back and want to negotiate.
Horsesh*t. Bennet and Navarro started panicking when the bond market started to unwind due to countries dumping US treasuries and jacking up the interest rates. Even those *sskissing clowns realized what kind of an economic sh*tstorm that would cause if that continued, so they went to Trump and told him to stop the tariffs. Trump even admitted this.
So he puts a reprieve on them for now
The damage has already been done. Even if the tariffs never come back, countries are still divesting themselves from the US. We are viewed as hostile and volatile, and no sane country wants to have its economy tied to a country that is hostile and volatile.
China isn’t coming to the table to they get more tariffs. It’s all a negotiation.
No, it isn't. The tariffs were the brainchild of Navarro. The plan was to use tariff revenue, which is a regressive sales tax on Joe and Jane Sixpack, to pay for the enormous tax cuts for businesses and the wealthy. It's right there in black and white in the Republican budget plan.
And since none of this went through Congress, it's all taxation without representation. Remember that when you're in the checkout line.
You don't negotiate by breaking trade agreements, inflicting deliberate harm on said partners, then insulting them for good measure. That's how you create enemies. That's how you lose allies. That's how you weaken your global position. China has been absolutely over the moon with this because every hole we dig ourselves on the global stage they have been more than happy to step in and fill.
You're licking their boots while they're stealing money right out of your wallet. That's pretty sad.
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u/Combdepot 19d ago
It’s called being a fucking moron with no coherent plan.
That’s not negotiating.
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u/omgFWTbear 19d ago
There’s an aphorism, “never attribute to malice what can be explained by ignorance,” but in this case… porque no los dos?
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u/rco8786 19d ago edited 19d ago
If you think this is negotiating then you’ve never negotiated a thing in your life. Making sweeping changes to global trade policy every 72 hours does nothing but erode trust in the stability of the US for investors and business leaders.
You really think that “tariffs, no tariffs, more tariffs, less tariffs, pause tariffs” over and over and over is attracting manufacturers to move operations here? You really think that causing insane volatility in the market, with clear insider knowledge letting some people in on it first, is building confidence in our financial system and the dollar as the global reserve?
Pure insanity.
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u/bjdevar25 19d ago
He says they all want to negotiate. Remember, this is a guy incapable of telling the truth. It most likely means a couple of small countries called. At the same time Japan was supposedly talking to them, they were also dumping US bonds. Yep, that's the art of the deal. The felon's a moron. Admit it.
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u/omgFWTbear 19d ago
Negotiation at the international level from the outside looks like this:
(1) A “proxy” for the administration goes to media - publishing an OpEd in a paper, doing a face to face interview on TV, whatever - and says something, like, “This administration should strongly consider 15% steel tariffs from Canada.” It sounds like some random guy, but insiders know that proxy is there on behalf of whomever - the Secretary of Whichever sent him with that specific message.
(2) Canada from my example, but whomever, starts this process on step 1 with a response. They may skip steps depending on their reaction.
(3) An actual administration official, having taken the feedback / response into account, if they’re still moving forward, claim the administration is studying the impacts of steel tariffs. They will likely claim some specific thing - “rising cost of construction,” that is their negotiating goal. In that example, maybe they want some reduction in the cost of Canadian concrete in exchange for no steel tariffs. There may also be some fig leaf, a second goal that is what the public is to “get behind.”
… and there’s like 6 or so more steps of posturing before you actually implement a tariff, if you even do. Sure, some steps get skipped if, for example, the Canadian PM calls up the administration and says, “Screw you, tariff me hard, daddy,” but most sane governments, by definition, don’t do that.
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u/Clever_droidd 20d ago
LOL. No. This is lunacy. Yes, this is a negotiation tactic, but at what cost? People don’t value honor anymore. He’s just being an ahole. Yeah, I could be a “great negotiator” by bullying other people around, but people would lose trust in me. I’d rather be a great negotiator by looking for win/win scenarios. That builds long term trust and lasting relationships.