03-04-2025, 02:36 PM
So far, the market is certainly taking it well (not!).
As I wrote this, NASDAQ, S+P, Dow were all off another 1.1%; Russell 2000 off another 1.6%. Now it’s a little lower. But maybe Wall Street will “climb a wall of worry” and rally later today?
Crypto off another 7% (Bitcoin) to 16% (Trumpcoin). Yup, heckuva “store of value”, that. (Gold is up again, tho)
I know I hammer on crypto (for lots of good reasons, I think), but I think one real economic danger is that a lot of the money in that is speculation by Wall Street types trying to to juice their returns, just like in real estate/mortgages before the Great Recession circa 2008. If they are in any way leveraging between stocks and crypto, they’re going to have to start selling one or the other at a loss to cover, and that can be a vicious cycle.
As I wrote this, NASDAQ, S+P, Dow were all off another 1.1%; Russell 2000 off another 1.6%. Now it’s a little lower. But maybe Wall Street will “climb a wall of worry” and rally later today?
Crypto off another 7% (Bitcoin) to 16% (Trumpcoin). Yup, heckuva “store of value”, that. (Gold is up again, tho)
I know I hammer on crypto (for lots of good reasons, I think), but I think one real economic danger is that a lot of the money in that is speculation by Wall Street types trying to to juice their returns, just like in real estate/mortgages before the Great Recession circa 2008. If they are in any way leveraging between stocks and crypto, they’re going to have to start selling one or the other at a loss to cover, and that can be a vicious cycle.