Posted on 04/09/2018 8:00:07 AM PDT by SeekAndFind
Every once in a while, Wall Street has a fit.
Sometimes it is warranted, many times it is not. The tariff tantrum falls under into the latter category.
Late Thursday night, President Trump upped the ante in the tariff game, proposing a review of an additional $100 billion of potential tariffs.
So the US and China, the two largest economies, jostle over a tiny percentage of their multitrillion-dollar GDPs to make a point — and to score points.
But Wall Street uses its finest calculus, egged on by Trump-bashing media personalities dressed up as “journalists,” to extrapolate that we are in an “all-out trade war.”
What is so baffling about the tariff tantrum is that it was an issue on which the president campaigned.
There’s not an economist with a shred of credibility who thinks the US gets treated fairly by China, especially when it comes to intellectual property.
Wall Street is chock-full of pseudo-intellectuals who went to good schools and got good grades. But the vast majority lack the ability to think critically, especially at critical moments.
Remember when the markets were going to go to hell if Gary Cohn ever left the White House? Well, Cohn had a disagreement with the president and resigned over the proposed tariffs, and the markets were just fine.
The second-biggest overhyped myth on the planet is that “China could sell our bonds.” Please do, China, and rip that Band-Aid off quickly.
China’s stake is one day of trading volume. That’s it.
I get that many journalists have a different political persuasion than Trump, but numerous presidents have had trade disputes. President Obama slapped a 35 percent tariff on Chinese automobile and light truck tires.
He wasn’t vilified, he was “sticking up for the worker.”
(Excerpt) Read more at nypost.com ...
Wall Street is Pro-China and Anti-Trump
That means the dip is a buying opportunity.
Currently, there are NO TARIFFS, only PROPOSED TARIFFS.
Trump: We need to really go after China. They have been smashing our faces in the dirt for years. We gotta stop that. We needs tariffs. We need to bloody their noses.
What does China do? They think the absolute worst. They get a little nervous. They think that Trump will do everything they are fearing.
Trump: We are going to go after aluminum and steel.
And China goes - "Whew! He's not going to go after EVERYTHING. Whew!
Meanwhile, the lamestreamers have get their panties in a wad and Trump combs his hair.
I think a lot of these market swings are caused by big fund managers all selling off when the market peaks and then buying back in at the market lows.
Don’t forget computer algorithms, they are mostly responsible for the huge swings in the market.
That's because the following, from the article, is true: "Wall Street is chock-full of pseudo-intellectuals who went to good schools and got good grades. But the vast majority lack the ability to think critically, especially at critical moments."
The same is generally true of those in government and in academia.
RE: Currently, there are NO TARIFFS, only PROPOSED TARIFFS.
And that’s the problem — traders/markets are FORWARD LOOKING.
True of people in general, but applies especially to Govt and academics, who have no experience in reality.
Yes in the short term their cheap junk and slave labor produced cheap electronics would be missed but we'd find other ways to get them. China would probably starve. Who needs who?
The EU and China are overreacting.
They need to accept the US must have the ability to produce its own steel and aluminum, as WW2 proved.
The US wishes to have an industrial base, which is essential for a prosperous society.
All of this theater is for generating money.
Win on the down side and win on the upside because these big companies are not going anywhere.
Who is told when the hysterical news is going to be triggered? Follow the money.
Wall Street uses any excuse to manipulate the stock prices.
If it is cloudy on Tuesday the stocks may go down.
They’re holding a stampy-foot hissy fit. They are gonna hold their breath until they turn blue.
Ignore them. They can’t keep that up for long, you’ll see.
Donald J. Trump
Verified account @realDonaldTrump
"When a car is sent to the United States from China, there is a Tariff to be paid of 2 1/2%. When a car is sent to China from the United States, there is a Tariff to be paid of 25%. Does that sound like free or fair trade. No, it sounds like STUPID TRADE - going on for years!"
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I said much the same today about a silly sky is falling article on World Oil.
This panic is silly. Wish i had a bunch of money to invest right now.
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