this post was submitted on 20 Feb 2025
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No Stupid Questions

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I have no idea how while Trump is a) ripping out the underpinnings of constitutional law which, in turn, is all that holds up all other laws (including transactional) in the US AND b) ripping apart the post war Western defense alliance leaving Europe and Australia completely exposed and vulnerable AND c) going to impose global reciprocal tariffs, which are going to kill trade and plunge the country and the world into the greatest economic depression (coincidentally) since the 1930's, how the market isn't down 75% - 90% by this point. Hopes & Dreams? Hallucinogens? Heroin?

What power on earth is allowing Hedge Funds, Banks and Small Investors the justification to keep betting on an underlying business system which is literally being pulled apart at the seams with no real hope of being functional shortly. How is this happening. It's like I'm taking crazy pills every day. The market should look at what Trump's already done (much less what he still promises to do) and say, whoop that's us, we're audi, this is insane, we can't trade our value as a corporation any longer, we don't know where supplies, labor, administration, distribution, sales, or any law governing any of it stands, we have to pull all our monies out, and put them someplace safe like our pockets.

What is happening to keep the market propped up, when literally everything, everywhere that it needs for stability in projected earnings is being hollowed out beneath it?

edit 2/20 : lol edit 2/21: lol

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[–] [email protected] 17 points 2 days ago* (last edited 2 days ago)

If you believe all kinds of capitalist ideology and pseudo-science, then it might seem strange.

But in reality fascism is great for capital. Also the fed prints hella money to prop it all up.

[–] [email protected] 3 points 2 days ago

https://pca.st/episode/6df1a506-9b38-4298-8de5-ec17e71d379b

Here is a great explanation of what you're asking. I trust this channel for news over pretty much anything else.

[–] [email protected] 7 points 2 days ago (1 children)

$5 parking right next to the bread line. Not bad.

[–] [email protected] 5 points 2 days ago (1 children)
[–] [email protected] 4 points 2 days ago (2 children)

Which is around $5 in today's dollars.

[–] [email protected] 4 points 2 days ago

Ah I see. Thanks for clarifying your intent.

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[–] [email protected] 38 points 2 days ago (1 children)

This is the pump before the dump. Institutional investors are slowly exiting and retail investors are making up most of the volume.

We were due for a correction or crash but Biden and the Fed held it off long enough for the election. There is a lot of money sitting on the sidelines waiting to grab assets, housing etc on the cheap.

Grifters like Trump can’t wait to get it started. In every crisis there is opportunity what Trump does with this crisis will likely reshape our government.

[–] [email protected] 21 points 2 days ago (1 children)

Good thing Elon is trying to kill social security and other assistance programs ahead of the fall.

He really wants to see people suffer.

[–] [email protected] 19 points 2 days ago (2 children)

You expect people to take their money from stocks and put into what exactly?

Putting it in "someplace safe like our pockets" is neither safe, nor something people can do in large numbers. They can put it in bank accounts in large numbers, how safer than stocks do you think those are?

[–] [email protected] 9 points 2 days ago (2 children)

not at all, the fdic can't be trusted any longer, and that's only up to ~~100k~~ 250k when it was under trustworthy management, and people had the expectation of being made whole by the federal government if their bank failed. yeah, no, there are no safe answers here. this ghost valuation of the market propped up on yesterdays laws of american commerce though, whoof. someday soon somebody somewhere is going to say "the emporer has no clothes" and then it all comes down.

[–] [email protected] 10 points 2 days ago (1 children)

FDIC coverage was updated to $250K.

Doesn't change the current political risks to the program though, i.e. whether or not it will actually pay out to a crashed bank's account holders.

[–] [email protected] 4 points 2 days ago

cheers, thanks for the correction

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[–] [email protected] 1 points 2 days ago (1 children)

The stock market holds value because people believe it holds value. There is nothing actually backing any of that up. We dumb monkies just like watching number go up and will ensure number goes up at all costs. It's how capitalism works.

[–] [email protected] 3 points 2 days ago

Meh, party true. Say Coca Cola's stock goes down, they still own the infrastructure, the products and the brand. In other words, they have real value that didn't go poof just because their stocks went down.

Much of what we see is bullshit, because bullshit makes headlines. Tesla is a perfect example. This crowd hardly needs a review, but suffice to say that while Tesla has value, it's tanking fast and the stock price will eventually pop and drop to that far, far lower value.

[–] [email protected] 20 points 2 days ago (2 children)

The stock market has no attachment to reality any more

[–] [email protected] 8 points 2 days ago

The stock market has no attachment to reality ~~any more~~ ever

[–] [email protected] 13 points 2 days ago (1 children)

"consumer confidence" = feelings = not-reality

... checks out.

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[–] [email protected] 14 points 2 days ago

When the Berlin Wall fell, the predictions made at the time were for several decades of low intensity conflict ('war on terror') followed by another major world war. This is the expected state of the world, not some surprise outcome from out of nowhere that the capitalists haven't planned for.

Australia is still being shielded from Chinese expansionism by NATO's anti-access and area-denial strategy emplaced along the islands off China's coast.

If the war in Europe expands and heats up, it will be European cities that get destroyed and EU citizens who will have to choose to fight for their autonomy or preemptively surrender to subjugation by the Tsar. USA pulling back from supporting Ukraine forces the EU to pick a path and walk it. Either they build an army capable of self-defense, or they'll be overrun. The fighting in Ukraine prevents Russia from building up forces, buying the EU time to arm themselves, if that's what they decide they want to do. If they move fast, there's a chance they can win the war before it really begins.

Expect to see nuclear proliferation. Modern wars have shown that non-nuclear armed states are a toothless prey species that only exist so long as their nuclear armed neighbors permit it. During the reconstruction era following WWII, USA's relative advantage in infrastructure and technology allowed them to grant credible security guarantees. Now that the rest of the world has caught up, USA's defense promises have lost credibility (for example, see Ukraine).

The ocean is full of submarines, and the coastlines bristle with long range, precision missiles. World trade is expected to be among the first casualties of the next world war. Countries that are not self-sufficient will be unable to replenish their losses. Economic protectionism is a matter of national security.

Dismantling USA's Federal government serves the interests of organized crime, ie the capitalists that own Wall Street. They're getting squeezed by de-globalization but also expect to be able to expand into new criminal enterprise enabled by deregulation and the dismantling of the Federal government's investigative capabilities. Without having someplace better to invest capital, might as well let it ride despite the chaos. With a world war, and possibly a nuclear exchange, just over the horizon, there really isn't any safe place to put one's money, except perhaps housing and real estate in those parts of the world expected to survive. Canada. Siberia. Greenland.

If we do nothing to reduce atmospheric CO2, global heating will eventually cap out at 5 degrees C and won't go higher due to diminishing returns. The far north will need to invest in agricultural infrastructure, but once that gets built out in the warmer world, there will be more arable land than there is today. Its going to be boom times for real estate developers.

[–] [email protected] 15 points 2 days ago (2 children)

Because this is the Second Business Plot, and this time it worked.

[–] [email protected] 3 points 2 days ago* (last edited 2 days ago)

Thats a good comparison to the end result, but he skipped the "get support of the military" step.

He just freed a bunch of criminal paramilitaries, but when push comes to shove, I think they'll be quickly eliminated by the actual military.

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[–] [email protected] 6 points 2 days ago

Unfortunately the president does not need to care about what his political party thinks about his action. There is the big problem. Now they have a wild tigger running around.

[–] [email protected] 29 points 2 days ago

Because it's basd on bullshit metrics that mean nothing?

[–] [email protected] 12 points 2 days ago (1 children)

The same way Bitcoin keeps value; most of the supply never changes hand. In Bitcoin because the wallets are no longer accessible, in stock because the owners live comfortably on dividends alone.

[–] [email protected] 0 points 2 days ago* (last edited 2 days ago) (1 children)

I agree that bitcoin and stocks are both just wacky pyramid schemes but...

the wallets are no longer accessible

What wallets?

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[–] [email protected] 13 points 2 days ago

Because of the cuts. It'll be a year or so of smooth sailing.... then, as the chickens come home to roost: nosedive.

[–] [email protected] 8 points 2 days ago (3 children)

A little while ago the entire market went red. If it's doing well now then that's only comparative to everything going on then.

That said, gutting regulations certainly will boost profits short term, if you care more about that than human life and happiness.

[–] [email protected] 1 points 2 days ago

What the fuck are you even talking about?

[–] [email protected] 4 points 2 days ago (1 children)

S&P500 closed at an all-time high yesterday. It's not just up relative to a downturn.

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