Something Wicked This Way Comes - Stock Market Collapse After Trump Takes Office

originally posted by: reldra

originally posted by: Soloprotocol

originally posted by: xuenchen
Maybe he's setting up the bankers for a big failure.

You ever wonder how much Trump owes to the banks.? He would love nothing more than the Banks to fail again with Trump inc owing them billions. He crashes and burns Trump inc then buys it all back through trump inc mkII ( offshore division) for next to nothing with his billions in debt picked up by the tax payer when the banks get the inevitable government bailout... it's a win win for the 1%er...as usual.

You are correct. He just moves debt around. He also claimed that huge loss when he shouldn't have. His debt from the investors was forgiven for shares in other things. For the regular person, we have to pay a tax on forgiven debt. Like you pay your car loan in settlement, Ford Credit no longer pursues you, but you owe a tax on the amount forgiven. Not for Trump though.

He feels he is above tax laws and is 'smart' to not pay taxes for 18 years. When in reality, he is just a jerk.

It'll catch up with him eventually, Unfortunately it'll be the investors in Trump inc who pay the heavy price. Trump will move his money safely offshore long before any of the fallout effects him.

originally posted by: swanne
a reply to: reldra

Maybe Russia is considering a partnership with USA only if Trump is president. Trump charging China more would enrich US corps, enabling Russia to sell more goods to the US. It'd practically make the US a part of the SCO. Trump charging Japan makes sense if Russia's planning something against Japan.

I saw that, also.

a reply to: infolurker

The equity markets are due for a correction. The ZIRP of the last few years has pushed investors into riskier asset classes looking for returns. All the extra cash floating around worked it way into the markets hence the run up. A lot of small time investors are going to get hurt.

The markets initially reacted negatively to Trump (remember the futures market essentially crashed the night of the election when it was obvious Trump was winning). However, but that morning, the markets were rallying bigly.

The rally to date has continued because I think Trump has ushered in a new wave of optimism that may lead to more capital investment and expansion.

The problem with the past 8 years under Obama is that businesses have had to deal with uncertainty, particularly when it comes to regulations. A lot of that fear is gone. The Obama approach was to essentially punish businesses. This is why businesses were sitting on so much cash. As such, businesses now will feel more compelled to make larger investments as they can afford the risks without having to worry about some new regulations coming down from one of the alphabet agencies. Businesses feel that government may get out of the way so they can focus on growing and expanding (which is what stock prices represent, the investors confidence in future growth).

It remains to be seen if the Fed will continue to raise rates and what if any impact the higher cost of borrowing will have. The big problem is the fed waited way too long to start raising rates so in some ways they've painted themselves in a corner.

Folks have been predicting stock market collapses and the end of the dollar every day for the past 30 years .

A USA Stock Market collapse.... will affect other foreign markets too.... so a world wide rebalancing must come about but I see absolutely nothing to replace Stock Equities as a way to store wealth and as a possible way to grow wealth...

If there is no replacement for Stock Equities... then the 'so-called Collapse' is nothing more than 20% or greater loss of Stock Valuation... even a 90% collapse of the over-bought prices we see at this threshold to 20K DOW will only be a long-term correction in hindsight...

the rotation out of stocks into bonds or commodities, even crypto-money must happen for a actual 'collapse' to transpire

keep stacking PMs
keep that pantry filled
keep that private water source confidential
keep hoarding ammo to trade
keep learning trades & becoming adept at off grid engineering/manufacturing ...like forging swords, rifling projectile barrels, bio-diesel production, et al
create a sustainable 12 volt home system among other things

And while market corrections are painful for everyone, they are also quick to correct if government stays out of the way and stops meddling to try to "fix" them. Everyone talks about the big crash of the '30s and the Depression, but there was another crash before it that was just was as bad, but the president of the time - Coolidge - decided that government had no call to meddle in the market at all. And within a year, two at most, the market had fully recovered and was thriving again.

originally posted by: slider1982
I wonder what Trumps response would be to countries turning to a alternative over the Petro Dollar and the catastrophic effect that would cause to the US??...

If countries want to really f#ck up the US maybe the time is near??..
RA

More and more oil is being discovered, possibly the only reason that much is now being known is because oil is fast becoming unfashionable, something of a Catch 22.
Trump basically wants to restart the fossil power regime as a way forward, instead of building on any progress that is being made in the way of alternatives in power.
That is an enigma, my beef with oil and coal as a power source is in the local uncontrolled pollution in does cause without the aspect of so-called AGW being pushed in your face with the like of the, 'carbon footprint' meme, when we are made of the stuff to a significant degree in mass.
Trump however is being silly, he just wants to go back to something that is basically gone, while using the, 'AGW' overall myth as the excuse.
That needs some hard thinking, but by the signs in the OP's link, which I think is mostly correct, it doesn't look good in the long run, if any of the progress to date is forced to take a wrong turn, or a dead end.

I've always said, "the more Trump finds out about what's really going on behind the scenes, the more he will quiet down".
It is reining true.
I do however like the comment that the "elite" will use this as a way to manipulate him into coercion.
He has 2 choices.
He can play ball, and the House will pass more spending bills, and at the end of 8 years, we will be 30-40 trillion in debt ready for the next Pres to play ball or not.
Or, he can piss everyone off, and "they" bring the system down just enough to hurt the average person who doesn't know crap about economics. The sheeple will all blame it on Trump not knowing the President has little control over these things.
The thing about a Fiat system is, it can go on forever. As long as there is American Pride, greenbacks will hold value.

Either way, the system can't completely fail.
In this age, there will be no dust bowl. It would be mass genocide on a major scale. Also, the people in power would have nothing to do. No more sheep to tend to. Can't have that now can we?

originally posted by: ketsuko
And while market corrections are painful for everyone, they are also quick to correct if government stays out of the way and stops meddling to try to "fix" them. Everyone talks about the big crash of the '30s and the Depression, but there was another crash before it that was just was as bad, but the president of the time - Coolidge - decided that government had no call to meddle in the market at all. And within a year, two at most, the market had fully recovered and was thriving again.

There would have been some short term pain had the government took a hands off approach and let a lot of the banks fail. However, we would have been much better off.

Some theorize we've had a cycle of busts and the government just keeps moving it.... We had the dotcom implosion first... rates lowered dramatically and money then moved to real estate. That imploded. Rates went even lower and we've had the run up in the Dow.

originally posted by: RiptKeys
I've always said, "the more Trump finds out about what's really going on behind the scenes, the more he will quiet down".
It is reining true.
The thing about a Fiat system is, it can go on forever. As long as there is American Pride, greenbacks will hold value.
...
Either way, the system can't completely fail.
In this age, there will be no dust bowl. It would be mass genocide on a major scale. Also, the people in power would have nothing to do. No more sheep to tend to. Can't have that now can we?

emphasis mine

These power creatures binge in cycles. I'm worried about only one thing...
when they get tired of playing with their food, and we've at the
same time outlived our usefulness as profit units-- forget the crash.
They'll start a war or plague or some other trimmer: and we are the EDIT grass weeds.

Just wait til they pull the cord on this, that coupled with a market correction here might lead to some ugly outcomes.

a reply to: reldra


Not that dumb. Its been reported for the last couple of years the people with the real money have been buying gold and other stuff that the dollar buys while it is tradable and reasonably strong , like the real stuff that it can be converted into. Since the debt based economy's days are numbered, we can see that by the miniscule interest rates, if they were higher the debt could not be repaid and it would all crash. Simply because its all a debt based system, that relies on the faith that if you lend you will get your money back with interest. Its only lasted this long because most of the developed countries have the same system and when it gets ready to crash all the currencies chase each other to the bottom.
They might go for a digital dollar, as for the past couple of years its been getting more difficult to get large amounts of money out of the banks in cash. But the system can easily be pumped with more digital liquidity, up to a point.

If they don't address the steady increase of student loan defaults which have been rising every year, that alone will definitely make a huge negative impact on our economy. The high cost of a college education is already beginning to see a big decline in student enrollment. Universities are pricing themselves out of the education market. I predict, we'll be seeing some universities folding because of declining school enrollment.

Students who are graduating from college are strapped with huge debt. The banks have taken advantage of it and are charging anywhere from 5% - 11% interest on these loans. Most students can't even find jobs, and if they do, they don't make enough to handle a monthly payment of $600 - $2,000 dollars a month let alone pay for their monthly living expenses. When an entire generation can't afford to buy houses, insurance, cars, or purchase common goods, it will effect every business across this country.

In the mean time, like always, congress will ignore the economic problems we have here at home until they're faced with another announcement like we had in 2008.

I remember before the last crash, all I heard on TV and radio were commercials about how they wanted to buy my gold. Jewelry, coins, raw, anything. Market crashes and now all the commercials are about how YOU should buy the gold / silver.

I think if another crash is going to happen they'll be trying to buy your gold again before the price skyrockets so they can sell it back to you for 2000 an ounce.

a reply to: infolurker

ZeroHedge should get fact checkers. "So much for Bush’s ownership society dream."

George Bush in office January 20, 2001 – January 20, 2009.

NY Times 9/30/99
Fannie Mae Eases Credit To Aid Mortgage Lending By STEVEN A. HOLMES SEPT. 30, 1999

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders. The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.

Bold emphasis my own. Didn't bother assessing anything else in the quoted text/article after finding that glaring gaffe, sorry.

But to the headline, itself. Yeah, the market will pull back. It dropped 10% in the first six weeks of 2016. Rebounded. Up and down all year, then climbed again. We saw the same thing in June 2016. Managers realign funds at the end of the year ahead of the new year. Seems normal. Whether it draws down 7 or 10%, it comes and it goes and comes again.

a reply to: reldra

Trouble is coming with conflicts of interest. If he was smart, he would consolidate his debt with a bank that would have the least amount of conflicts. Definitely not owe money to a bank under investigation by his soon to be Justice Department.

Trump May Have a $300 Million Conflict of Interest With Deutsche Bank

www.bloomberg.com...

Now that guarantee -- employed to extract better terms on hundreds of millions of dollars of loans to the Trump Organization -- is at the center of a delicate loan-restructuring discussion at Deutsche Bank AG, which is under investigation on several fronts by the U.S. Department of Justice.

The bank is trying to restructure some of Trump’s roughly $300 million debt as part of an attempt to reduce any conflict of interest between the loan and his presidency, according to a person familiar with the matter. Normally, the removal of a personal pledge might lead to more-stringent terms. But there is little normal about this interaction. Trump’s attorney general will inherit an investigation of Deutsche Bank related to stock trades for rich clients in Russia -- where Trump says he plans to improve relations -- and may have to deal with a possible multibillion-dollar penalty to the bank related to mortgage-bond investigations.


‘Looks Terrible’

“When you have political appointees making decisions about banks that the president owes a lot of money to, it looks terrible,” said Richard Painter, a law professor at the University of Minnesota who was the chief ethics lawyer for President George W. Bush. “The U.S. government is dealing with regulatory and criminal issues with the big banks all the time, and if he owes them a lot of money, there might be an incentive to favor less regulation and less enforcement for the banks.”

Then here comes the helicopter money...they'll really be able to do whatever they want once they get everyone hooked on that government check.

If Trump actual tries to right the ship from the last 12 to 16 years of neglect, it's going to hurt.

Think of it as physical therapy after a knee replacement.

Or the side effects of chemo and / or radiation treatment to cure cancer.

American's always want the magic pill that makes things easy and better.....

a reply to: infolurker

With the labor participation rate at a thirty year low of 62.7%, a record number of Boomers having to work to survive, and 124 million full time employees supporting 102 million non-working Americans, you might have the real reason Trump won the election.

It would be interesting to know the source of that information.

It sure feels like that is the case. And looks like too with all the homeless people on the street.

It should be the top story in the news and the focus of our attention, but nobody knows about it. It is amazing what the media can hide, no matter how big it is.

a reply to: nOraKat

It's the new American dream. Anyone can be an actor for example. Who cares if you only make one commercial a year if the government redistributes food, housing, and healthcare to you?

Or an artist that cannot sale a painting or get a commission.

Or your major was in cultural studies.....