Economic fears of investors are here -- and fed by Trump's dipshittery

[Yo_Mama_Been_Loggin]

For months, the U.S. economy appeared to be weathering the disruptive effects of President Donald Trump’s trade and immigration policies.

But over the course of 72 hours, that sunny outlook darkened, as the latest government data this week showed the president’s revolutionary remaking of the world’s largest economy had hit a snag.

Friday’s disappointing jobs report revealed a labor market that is much weaker than either the White House or Federal Reserve understood. Inflation, the voter irritant that helped return Trump to the Oval Office, is proving newly stubborn. And consumers are growing more cautious with their spending.

After campaigning on a pledge to free business from worrying about Washington’s dictates, Trump has made public policy - and his own norm-busting behavior - the primary variables affecting the $30 trillion U.S. economy, economists said.

https://finance.yahoo.com/news/economic-fears-investors-fed-trump-194532573.html

[Bernardo de La Paz]

1. Supply shocks (tariff taxes, mass labour deportations) generate stagflation. Stagflation has arrived . . . . nt

[unblock]

2. I think the gdp report and inflation indications have more to do with it than the unemployment stats

Investors normally aren't bothered by a weaker jobs market when we're at or near full employment. It reduces overall labor bargaining pressure. A weaker jobs market means lower labor costs, or at least less increase in labor costs, and businesses like that.

But the gdp report showed a less robust economy and an increase in consumption, indicating "stubborn" inflation. If this is a trend, then yeah, stagflation. Not the best time for investing.

My company helps struggling businesses find financing. We're seeing a rather large increase in demand for our services. Anecdotal, but we do better in more challenging times (as long as it's not so bad that banks shut down lending, as they did during the Great Recession).

Tariffs haven't been overly problematic *yet* because (a) Donnie has no credibility with all his big talk followed by delays or backs down and (b) global businesses learned during Covid to be much more flexible in terms of their supply chain.

That said, it's a long term problem because fewer imports means fewer raw materials and overall America is a less desirable place for business. This means the global economy is in the process of bypassing and avoiding America. Not good.

[Dawson Leery]

3. Extorting businessses is also bad.

Investors will go elsewhere.