All things considered, it has only been about 3 months since Trump took office, I feel like there is absolutely no way that this was just a single craze and from here things will even out.
I feel like until 2028 (or maybe 2026?) S&P 500 is going to look like a roller coaster.
What do you think?
This was very interesting, but I feel like your arguments as to why things won’t be as crazy is mostly based on congress stopping him, but why do you think they will?
Until 2026 is there any real reason to believe that they will? What did they do up until now? This is one of the biggest stock crashes in US history and it feels like they rolled with it and made a profit buying low and selling high
There is one good historical indicator here. Clinton, Dubya, Obama, Biden, and Trump all entered their presidencies with control of Congress and lost it at the mid-terms. That’s just too strong a pattern to assume it won’t repeat.
The problem here is that the supposed ‘opposition’ is the Democratic Party, who themselves rule as conservatives and, in deed if not in word, support what Trump is doing.
I think that Congress most likely has involved itself.
No it hasn’t! It didn’t do anything like pass a law to take away powers!
Congress’s first step is not going to be to take any of the sorts of most-extreme moves I listed above. That’d be far down the list of actions to take. What it’s going to do is to go talk to Trump, not in public, and tell him that this is not something that they’re going to go along with. My guess, as I wrote above, is that that has most-likely happened.
Several Republican legislators — Ted Cruz, for one — have said that a recession would produce a bloodbath for Republicans in the midterms. This is going to be them expressing publicly that this isn’t okay with them. Peter Navarro can say that he’s fine with a recession; that doesn’t mean that Congress would be.
They’ve also had the Senate pass a resolution on terminating the public emergency upon which his tariff power rests. The House wasn’t expected to also pass it, and Trump would probably veto it, requiring it reaching a veto-proof majority backing it if Trump chose to veto it. But it’s Congress publicly saying that this isn’t on.
Congress is not going to take the kind of most-extreme actions that I listed because Trump caused the stock market to take a dip.
Interesting, I understand your argument but I feel that it has a bit of the classic “too reasonable to be true” as in, I think you are assuming that the house would act reasonably. With everything that has happened, and the public statements of some of these people, I think a lot of them are very very unreasonable.
This is almost certain. Every president for the last 30 years that went into office with Congress lost congressional control at the mid-terms.