No Stupid Questions

Unfortunately the president does not need to care about what his political party thinks about his action. There is the big problem. Now they have a wild tigger running around.

Money and 1/2 of Economics is based on magic and “religious” belief.

$5 parking right next to the bread line. Not bad.

Because the stock market doesn't reflect real life

Look at Tesla stock prices - even after a slight deflation it's astronomically overvalued and divorced from reality.

We're in a speculative bubble baby!

Look up how IBM, Coca Cola and Volkswagen (among many, many other companies that are very much still established to this day) got their boom-times during WW2 by supporting both the allies and the fash at the same time. They profited from everything that happened, in every way, and continue to do so.

Fascism is good for business, so to speak.

Stock market is basically meme gambling these days no different from crypto. Its not a reliable indicator of anything.

The stock market is delaminated from the real market, and has been for a while.

How this has happened is not simple but a short version is that as the stock market has evolved it became a key place to put assets with a level of growth expectation. As time goes on the demand for a place for investment without effort (starting your own business vs investing in a businesses stock) keeps getting larger and the alternatives keep getting less desirable (bonds, GICs, etc.) causing a sort of investment feedback loop. There is X amount of money that needs to be invested each year lets say, and if every thing is crashing (waves at the general state of things) it means nothing is since pensions, people and firms still need to have that investment somewhere.

As long as there is still some expectation of return and faith in the current stock market you will have investment and as stocks (and therefor the market) are measured by the demand (the buy vs the sell) we have the current situation. If you want to see what happens when a stock market looses people's faith and therefor investment look at China's stock market crash https://en.wikipedia.org/wiki/2015%E2%80%932016_Chinese_stock_market_turbulence

Maybe we should abolish stock markets.

I think economy, in the sense of money as a concept, is an illusion. We all just agree that money is worth something. When our belief in the American Dollar fails, so would follow any stocks tied up in businesses that rely upon it. Those trillions and tax cuts that Musk has? Worthless.

shrug

That is my hypothesis, anyways. My guess is that we are into a Weimer Germany sort of scenario. I have been converting my money into Euros, with the assumption that America as we knew it is going to die horribly within years. Hopefully, my efforts are pragmatic, not paranoid. 😕

keeping its* value

https://pca.st/episode/6df1a506-9b38-4298-8de5-ec17e71d379b

Here is a great explanation of what you're asking. I trust this channel for news over pretty much anything else.

The stock market is up because nothing has fundamentally changed. Tarrifs are only going to hurt the consumer.

The stock market is based on value extraction and as long as everyone keeps on working and consuming at reasonable level it will continue to hum along just fine.

Some markets and industries will be harmed by this the tarrifs but these are small fractions of the overall economy. There is also a ton of uncertainty since Trump has a tendency to pull back any measure that affects the market averages.

The pain will be felt by workers and consumers but people have to work and we cannot stop consuming so affected workers will ultimately shift to new places and consumption will shift to new products and the skim will continue.

Global markets aren't going to get shaken up because the global market is incredibly resilient. Prices will quiver for a bit but in the long run they will simply route around us and new normals will emerge.

The only way things change is if the people cause it to change. Either accidentally or on purpose. But the change has to be sudden and swift because there are tons of levers built into the system to force us to participate.

Something like national strike might not be enough unless it can be sustained indefinitely and it's not clear how that could occur. I suspect will take several events each gaining the momentum of the last and there is little chance of a first event for occurring.

The stock market is indicating it doesn't think we have the fortitude and despite what we may want to be true, they know a lot about us and our patterns. Our predictability is to their profit, literally.

Because its value was always fictitious.

The stock market is a speculative vehicle whereby predominantly rich people get richer. Generally pointing at everything should indicate a lot of rich people getting richer, so what’s the issue? It’s only if you take the valuation of the stock market as some kind of core health measurement of the economy that it stops making sense. Because it’s not that.

Because the stock market is pure fantasy that doesn't have anything to do with the economy?