Remove Ads Get VIP
Similar Worlds
Email/Username
Password
Log In

Politics

Notifications: · Newest First
How will the markets behave if Trump wins the presidency?
It's rather a shocking possibility. But this article in NYT shows that it can indeed be a really scary prospect with severe global implications. And it's not some scary thoughts being peddled.

Assume, for a moment, that Donald J. Trump wins the presidency.

But what exactly happens the day after? To markets? To the economy?

The conventional wisdom is that, right off the bat, the stock market would fall precipitously. Simon Johnson, the Massachusetts Institute of Technology economist, posited that Mr. Trump’s presidency would “likely cause the stock market to crash and plunge the world into recession.” He predicted that Mr. Trump’s “anti-trade policies would cause a sharp slowdown, much like the British are experiencing” after their vote to exit the European Union.
In explaining his prediction, Professor Johnson wrote that Europe’s economy is so fragile that “Trump’s trade-led recession would tip Europe back into full-blown recession, which would likely precipitate a serious banking crisis.” After that, he continued: “If this risk were not contained — and the probability of a European banking debacle is already disconcertingly high — there would be a further negative spiral. Either way, the effects on emerging markets and all lower-income countries would be dramatic.”
SW User
1
44 replies
47 views
Nov 2, 2016
|
This page is a permanent link to the reply below and its nested replies. See all post replies »
Goralski · 51-55, M
They're going in d toilet soon enough doesn't matter who wins
SW User
The economic indicators have been improving consistently...so it's not going down the toilet.

Write a comment...
 
Post Comment  
 
9035 people say
Politics
Personal Stories, Advice, and Support
Ask a Question
Updated: 7 mins ago
Content Rating: Non-Adult
Group Members
 
How will the markets behave if Trump wins the pres... | Politics | Replies | Similar Worlds