Bear Territory
It’s probably a bad sign for the economy that next season’s White Lotus is going to be filmed at a Motel 6. The tariff-induced market mayhem has entered its second week, causing many of us to lose our shirts (and our lunch). I’ve got an old Cal Bear cheer stuck in my head because it seems to perfect capture this market: You know it, you tell the story, you tell the whole damn world this is bear territory. Maybe this association with Cal Berkeley will convince Trump to back off from the twisted math and sham theories that have driven his current efforts, because the collapse of world markets doesn’t seem to be doing the trick. In retrospect, I wish I had invested all my money in Imodium futures.
+ Even Trump’s loudest (and most financially supportive) backers aren’t backing this. WSJ (Gift Article): Wall Street Starts to Speak Out Against Trump’s Tariffs.
+ “What happened on Wednesday … was a case of him doing exactly what he’d promised to do and what he’s wanted to do for decades.” James Surowiecki in The Atlantic (Gift Article): Wall Street Blew It.
+ “Anyone hoping that Trump will soon see the light and reverse course might want to reconsider the force of nature that they’re dealing with. He has been insulated from the consequences of his own actions his entire life and appears to care very little about the economic sinkhole he just created. He shared a video of himself golfing over the weekend and one White House insider told the Washington Post that the president, only about three months into his second term, carries the burdens of a notoriously burdensome job rather lightly. ‘He’s at the peak of just not giving a f— anymore.'” (So is my stock broker.) Timothy O’Brien in Bloomberg: Trump Created an Economic Sinkhole. He Doesn’t Care.
+ A rumor sent the market soaring and crashing in a matter of minutes on Monday. “The wild swing has little precedent in market history, moving potentially trillions of dollars up and then back down — a clear sign of how desperate people are for any sign of relief from Trump’s tariff regime.” (The only safe bet in this market is that insiders and rumor mongers are making money off these dramatic swings.)
+ US defends tariffs on remote island of penguins and seals. (Of course. Admitting mistakes is not in the playbook.)
+ Far from backing off, Trump’s latest salvo is a threat of 50% tariffs on China. Here’s the latest from CNBC and AP.
+ And, as per usual, Anne Applebaum perfectly integrates this story with all the others: “Trump has done the same damage to our health, environment and security as to our markets, it’s just that there isn’t a stock ticker that measures the impact so clearly.”
