April 4th 2025
The American markets have dropped about 10% in the last two days. That last time there was a drop like this was during the pandemic, and that was unexpected and surprising and no one knew how it would play out.
This is market crash is the first time it was caused by a single dumbass mistake. This crash was 100% unnecessary and only exists because Donald Trump decided to engineer it. Everyone who understands economics pointed out this would happen.
The US imposed massive tariffs on all the world except for a few exceptions. Israel and Australia did not have tariffs on American products, still they were hit with tariffs.
Canada and Mexico got no new ones, but the cars and car parts tariff along with the steel and aluminum tariff were quite specifically aimed towards Canada and Mexico.
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Remember store shelves during COVID? |
Russia was not tariffed because Donald Trump is under the control of Putin and is going to have a lot more trade with Russia as soon as Trump can get away with it. At the same time Ukraine was remtariffed!?!?!?!?!?!!!!???
Things are going to get really bad. Everything the economy goes downhill the one single constant is that everyone underestimates how bad it will get. Everyone in the media talks about how it will be bad but not that bad. The American March jobs report come in positive but that is a really bad thing to happen right now.
This market crash and economic depression is completely and totally created through incompetence. This makes it hard to understand how bad it will get bad but I am certain it is going to be a lot worse than anyone expects.
This is no longer the 1990s when the US was globally dominant in a way that was unbelievable. China was not a factor yet, the Soviet Union and Eastern Bloc were gone, Japan was no longer the economic super power, and so on and so on. The Us is big but no longer the only axis the world's economy needs to operate on.
There are two countries that are still very tied to the American economy, Canada and Mexico. I am not sure what is going on in Mexico but here in Canada there is a strong appetite to end the relationship with the US. OK, not end, but accept the US walked away from Canada. Canada is not going to beg for the US to come back. Instead Canadian PM Carney is talking about Canada taking the mantle of the US as leader of the free world.Let me say that again. Mark Carney has stated Canada is ready and willing to step to be the leader of the free world. Wow! Canada has a very long history of acting like it is a small country like the Netherlands or Denmark when it comes to global affairs, and not act like it is one of the biggest economies on earth and part of the G7. Will Canada now be a major global player?
How far will the markets fall? That is a very good question and I have no clear sense of where it will all end. I suspect retailers and manufactures that rely on China may go bankrupt in the next six months and their stocks will collapse. American Big Three auto makers could very well go bankrupt given that this will be worse than 2008/09. Do not forget that Canada and Ontario did a lot to bail out GM, much more than the Canadian share of the industry would warrant. The Big Three stocks could go way down.
To reiterate, this will be worse than 2008/09 and COVID combined. 50% to 70% fall in markets is not unrealistic but no one wants to think about that happening so they ignore the possibility of it.
Time to stop writing because my blood is boiling and I need to calm down.