Monday, May 16, 2016

Will Trump Crash The Stock Markets?

by JASmius

Given that Trump is a maven of Wall Street who is pretending to be its avenging nemesis - how that is in any way, shape, or form "capitalistic" is anybody's guess - his toppling of the Dow as POTUS would be likely just on general principles.  But one of his fellow (?) billionaires, Dallas Mavericks owner Mark Cuban, makes some compellingly specific arguments as to how Trump would be the twenty-first century Herbert Hoover:

Speaking to [CNN's] Erin Burnett [on Monday], Cuban, the owner of the Dallas Mavericks, was critical of Trump for not investing the time to do a "deep dive" and understand the issues.

In fact, he says that Trump presents a problem for Wall Street, in that it likes certainty and not shifting positions.

"When you have that amount of uncertainty, when there's, you know, flip-flopping, when you're not sure what the candidate is going to say from one thing to another, that uncertainty, you know, potentially as president of the United States, that's the last thing Wall Street wants to hear," he says. "And I can say with 100% certainty that there's a really good chance we could see a huge, huge, correction. Even today, there was an article on Reuters that said that Carl Icahn, supposedly someone who's supporting Donald and is mentoring him, in economics and finance, has taken a huge, 150% short position."...

"Look, I like Donald," Cuban said. "And I think he's done a lot of great things. When it comes to real estate, I'll defer to him every time. But to be president of the United States, you have to make an investment. You have to be committed to always learning. In business, to be a great CEO, to be a great investor, to be a great entrepreneur ... you have to have a commitment to learning. You have to have a commitment to always finding out what's next. Donald just hasn't done that." [emphases added]

And his cosmic narcissism ensures that he never will.  The balancing factor is that that same cosmic narcissism is already ensuring that he'll never get the White House to have a chance of crashing the Dow in the first place.

As Cuban disclosed in the CNN interview, he is holding his nose and voting for Hillary Clinton, just as some people I know are holding their noses and voting for Trump.  For me, it analogizes to Mrs. Clinton being like sulfuric acid, continuing to eat away at the remnants of the Old American Republic, and Trump being nitro glycerin, randomly blowing the remnants of the Old American Republic sky-high.  It really is picking your poison, and most general election voters will opt, as Cuban put it, for ""the devil you know is better than the devil you don't know."

I'm opting for neither because, as it were, I don't want my "death" to be a suicide.  And because I've never developed a taste for poison, and have no intention of starting now.

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