Last week’s stock sell-off was merely the beginning of what’s to come.
By Matt Taibbi and cross-posted from Rolling Stone
The soaring stock market has been the crux of Donald Trump’s argument for the competence of his reign. It might be his favorite tweet subject, outside the “Failing New York Times.”
Trump on August 18th: “Longest bull run in the history of the stock market, congratulations America!” August 24th: “Our economy is setting records on every front.” September 11th: “Where are the Democrats coming from? The best economy in the history of the country would totally collapse if they ever took control!”
But since the market hit an all-time high on October 3rd, Trump has shifted his tweets to other subjects. This makes sense, given that it took a nasty dive. The worst was a two-day sell-off in the middle of last week, during which the Dow Jones Industrial average dropped 1,377 points.
On Friday, the Dow opened with a big round of buying, then plunged again, then wobbled all day before finally ending 287 points up. This allowed the financial world to spend the weekend relief-boozing instead of planning for The End.
Maybe the stock market isn’t about to crash in the next 10 minutes. That doesn’t mean we shouldn’t be scared to our marrow over the future.
The sell-off last week was likely just a mild preview of what will happen once the blunt contradictions of Trump’s major economic moves — crazy even by his standards — set in.
“We’re fucked,” a market analyst friend of mine put it this weekend. “It’s all baked in the cake already.”
You don’t have to be a financial expert to see the irreconcilability of these three problems…