Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout • Hacker News Board

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#131

Post by bitmasher9 » Sat, Apr 05, 2025, 1:24 AM UTC

darksaints wrote: post #95

bdelmas wrote: post #32

Earlier quoted context omitted.

I think that those in command are also waiting for the next President to undo all that but it is going to have a tremendous effect for a decade or more. Hopefully for the US they won't go in a similar crisis like the UK is going through... Cutting off countries like Japan or Taiwan like that when we know their geopolitical situation with China and how critical their economy is to the US is quite crazy.

This. There is no reason why any country should trust us anymore if entire trade relations can be destroyed by a presidential whim. Even if Trump fell out of a window today and we got a pro-trade president tomorrow, we’re not fixing this damage for a very long time. We probably would have to amend the constitution to insulate foreign policy from the whims of a single person if we want any chance of fixing this in our…

Passing law that removes tariff authority from the president would be a good start to rebuilding trust.

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#132

Post by tayo42 » Sat, Apr 05, 2025, 1:25 AM UTC

labster wrote: post #104

lreeves wrote: post #10

You know the craziest thing about watching this as an outsider in Canada is that we as a nation are losing one reliable trading partner (and obviously losing an ally but that's another conversation). Germany - losing a trade partner. Japan? And so on. But the US has lost 180 reliable trading partners. You're already seeing in the first week burgeoning trade alliances between nations who wouldn't have cooperated befor…

There’s still a way out, the US Congress could convene over the weekend and revoke the President’s ability to impose tariffs. Restore it to Congress as stated in the constitution. Of course they won’t do that. Sic transit gloria mundi.

I started wondering if there's a way for citizens to push the issue that these tarrifs are unconstitutional. Like a lawsuit that got escalated to the Supreme Court or some thing if congress isn't going to.

Some of the senators are breaking away though.

If the country survives this though the next thing through executive order could be just as bad or worse. There doesn't seem to be any realistic way out of this insanity.

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#133

Post by markus_zhang » Sat, Apr 05, 2025, 1:25 AM UTC

asdev wrote: post #91

Tech really needs to fall another 50% at least. I think when the big AI bust happens(unless it's happening now), we will see that

With this kind of free fall it's going to trigger a lot of busts.

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#134

Post by whatever1 » Sat, Apr 05, 2025, 1:25 AM UTC

lwansbrough wrote: post #6

So where is the bottom? I don’t actually believe there is one, I’m just curious to hear what other people think.

The vision is to convert the American economy from one with infinite profit margins (ads and software) to a manufacturing one with single percentage profit margins and limited growth potential due to tariff environment.

So I think a 80-90% drop in the overall market value is justified.

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#135

Post by cortesoft » Sat, Apr 05, 2025, 1:25 AM UTC

huevosabio wrote: post #103

rtp4me wrote: post #24

On the bright side, this may be a good opportunity to convert 401(K) or IRA funds into a ROTH account.

Why?

Because you have to pay taxes on it when you convert, and you will have less to pay taxes on if you do it now.

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#136

Post by heurist » Sat, Apr 05, 2025, 1:25 AM UTC

ein0p wrote: post #15

WAI. Trump is crashing the T-note yield to refinance $9T (which is how much US debt is going to mature in 2025) at a lower rate. That, for those of us who know arithmetic, is approximately one quarter of all US debt. It seems to be working.

That's the most charitable possible reading of this strategy. There are many others.

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#137

Post by sorcerer-mar » Sat, Apr 05, 2025, 1:25 AM UTC

jarym wrote: post #30

beloch wrote: post #8

This is an inherently political subject, but I would appreciate a dispassionate argument explaining how this could be even remotely good for the U.S.'s economy in a way that is light on MAGA ideology and doesn't simply claim the overwhelming majority of economists are dumb. I'm simply not seeing even a glimmer of a possible upside right now. I see even less possibility of an upside for those of us North of the border…

My best understanding of the administration's psyche is that they're determined to have more manufacturing happen in the US - regardless of the economic impact. It still doesn't make sense though - there's a reason sneaker makers like to have kids in places like Vietnam make shoes for a few cents per hour. It's because no one in the US would work gruelling hours for such little pay! POTUS wants to 'level the field' b…

Also would require near-certainty that these conditions will last far, far longer than 4 years (or 4 days, per earlier tariff tantrums). Especially for the most important industries like semiconductors, steel, oil, which require massive capex.

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#138

Post by Spooky23 » Sat, Apr 05, 2025, 1:25 AM UTC

beloch wrote: post #8

This is an inherently political subject, but I would appreciate a dispassionate argument explaining how this could be even remotely good for the U.S.'s economy in a way that is light on MAGA ideology and doesn't simply claim the overwhelming majority of economists are dumb. I'm simply not seeing even a glimmer of a possible upside right now. I see even less possibility of an upside for those of us North of the border…

Trump has kooky beliefs about tariffs, and his economic guys are yes men.

Economics and science mean nothing to the President. He probably heard some blowhard in a bar 50 years ago yabber about tariffs. He’s an instinctual person, and when he senses danger to himself, he’ll pivot.

I’d guess there will be air strikes on Iran or threats of an incursion into the Mexican side of the border by June.

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#139

Post by outer_web » Sat, Apr 05, 2025, 1:25 AM UTC

hackly wrote: post #90

lwansbrough wrote: post #6

So where is the bottom? I don’t actually believe there is one, I’m just curious to hear what other people think.

Only one man knows the answer to this question.

He doesn't know either.

Re: Trump's Tariffs Wipe Out over $6T on Wall Street in Epic Two-Day Rout

#140

Post by Aeolun » Sat, Apr 05, 2025, 1:26 AM UTC

kristopolous wrote: post #48

csense wrote: post #12

So honest question: A bunch of people who currently own stock are deciding they'd rather have cash instead -- that much is obvious. But what exactly are they doing with the cash? Don't want to hold onto it, everyone says devaluation and inflation is coming. Bitcoin and gold are kinda flat. I expected them to shoot up as uncertainty hedges. What gives?

Trump just said "fuck you" to 95% of the planet. These stocks have a long way to fall. It sure would be nice to have a competent, organized opposition that does more than finger wag and tsk tsk in a scornful tone

Maybe all the billionaire owners of these stocks can go storm the capital together?