World Markets’ Plunge Signals Investors’ Doubts About Trump

As the realization worked its way around the planet that Donald J. Trump would become the next president of the United States, global investors reacted as if the world had caught fire. They yanked their money from the marketplace in an unrestrained bout of selling reminiscent of the outbreak of war or a major terrorist attack.

They sold stocks — first in Asia, and then in Europe, with New York trading set for a fall as well, according to the futures markets. They sold oil and the Mexican peso, pushing it to a record low. They even sold the American dollar, which nearly always functions as a refuge in times of chaos, but suddenly seemed like a green piece of paper issued by a government seized by insurrection.

Other traditional havens, like gold and the Japanese yen, rose in moves that had all the hallmarks of what traders usually describe as a flight to safety. But the dollar’s decline underscored a stark new reality: This time, very little seemed safe.

[Edit for brevity. --DJW001]

Mr. Trump at one point threatened to renegotiate the terms of American debt, effectively raising the prospect of a sovereign default in the epicenter of the global financial system and a loss of confidence in the reliability of the American currency. If faith in the basic sanctity of the dollar cannot be taken as a given, then nearly every crevice of finance is subject to some additional layer of risk — from mortgages to corporate bonds to government debt.

Source.

Well. this should make the "anti-globalists" happy. The one good thing about this is that the weak dollar will make American goods competitive on the world market... assuming they are not boycotted. What's more, Trump's track record of declaring bankruptcy makes the threat of an American default on its debt a very real one. I wonder what hard currency will replace it in the global reserves? The ruble is worthless, the RMB is still pegged to the dollar... perhaps now is the time to stock up on yen....

a reply to: DJW001

So the establishment is having a tantrum. Lets see how long they can keep that up.

They aren't doubts about trump, it's uncertainty the markets don't like. The same crap happened the day after Obama got elected.

It is called repositioning. They invested based on what the Main Stream Media told them, and they were wrong. Now they have to re-position. But your sense of panic is enjoyable.

originally posted by: mikegrouchy
It is called repositioning. They invested based on what the Main Stream Media told them, and they were wrong. Now they have to re-position. But your sense of panic is enjoyable.

Trump has talked as though he intended to impose protectionism. This can lead to a trade war. If he moves to declare bankruptcy, half of his party will not support him because they know that will lead to capital flight. This division will lead to further uncertainty, destabilizing markets further. Meanwhile, half the country will not accept his leadership. What generally happens when there is economic hardship and domestic turmoil?

Isn't that yet another indicator of how the "markets" are all rigged though?
They all go into panic mode without anything actually happening, based purely on speculation alone, lacking anything of substance.

originally posted by: Britguy
Isn't that yet another indicator of how the "markets" are all rigged though?
They all go into panic mode without anything actually happening, based purely on speculation alone, lacking anything of substance.

It's exactly the opposite. Markets go into panic because of the collective responses of crowds. If one investor panics, the fear can spread. Rigged markets were much more stable back in the Gilded Age.

So Wall Street's puppet, Hillary lost.
What did we expect the markets to do?

Maybe the bigwigs are worried, since they don't get to pick the cabinet. Wikileakls showed us that Citibank gets to do that,,,, with some Presidents.

a reply to: DJW001

Trump starts out with a 20 TRILLION DOLLAR DEBT . WTF do you Expect to Happen ? Obama #ed us All Economically for the Last 8 Freakin' Years . It will take a Decade before the U.S. Economy recovers from that no matter what the New President does .

Cry me a river.

Bubbles burst. Anyone who thinks this is bad hasn't been paying attention.

In the long run, we will be healthier for it.

originally posted by: Zanti Misfit
a reply to: DJW001

Trump starts out with a 20 TRILLION DOLLAR DEBT . WTF do you Expect to Happen ? Obama #ed us All Economically for the Last 8 Freakin' Years . It will take a Decade before the U.S. Economy recovers from that no matter what the New President does .

And George W Bush inherited a surplus from the Clinton years. I see you are already making excuses for Trump's inevitable failure.

originally posted by: DJW001

originally posted by: Zanti Misfit
a reply to: DJW001

Trump starts out with a 20 TRILLION DOLLAR DEBT . WTF do you Expect to Happen ? Obama #ed us All Economically for the Last 8 Freakin' Years . It will take a Decade before the U.S. Economy recovers from that no matter what the New President does .

And George W Bush inherited a surplus from the Clinton years. I see you are already making excuses for Trump's inevitable failure.

What Failures ? You got a Crystal Ball ? Will I get Lucky at my Local Bar tonight ? A Hottie Maybe Oh Swammie ?