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by ben_w 482 days ago
Markets are funny things.

US right now is run by someone whose explicit promises, if actually implemented, have an obvious immedidiate 13-14% reduction in GDP — literally, never mind side effects, I'm not counting any businesses losing confidence in the idea that America is a place to invest, this is just direct impact.

DOGE + deportation by themselves do most of that percentage. The tariffs are a rounding error in comparison, but still bad on the kind of scale that gets normal politicians kicked out.

And yet, the markets are up.

2 comments

If you factor in the inflation and the worldwide trade crisis, trading dollars for shares that will lose 10% real value doesn't sound so bad.
What timeframe are you working with, as in, when do you expect to see this reduction in GDP?

I just want to know so that I can set a reminder and check back on your comment when the time arrives.