We’re Seeing the Trump Market Crash and Coming Recession

We are seeing the beginning of an economic disaster for the country that will culminate with a devastating recession.

“The Trump Administration has spent the last 9 weeks allowing Elon Musk and his DOGE minions to run wild cutting key programs that Arizonans rely on, gutting the federal workforce, and prioritizing tax breaks to billionaires over the needs of everyday families,” said US Senator Ruben Gallego.

1. Stock Market Crash: The U.S. stock market has lost $5 trillion in value in three weeks. The S&P 500 ‘s rapid 10% decline from a record high into correction territory has wiped out trillions of dollars in market value.

This hits seniors right in their investment accounts, where retirement savings are invested in the stock market.

This was part of a scary stretch in which the S&P 500 has swung more than 1%, up or down, seven times in eight days because of Trump’s on-and-off-again tariffs. The worry is that the whipsaw moves will either hurt the economy directly or create enough uncertainty to drive US companies and consumers into an economy-freezing paralysis.

Ha ha, even Tesla stock is crashing. Since peaking at $479.86 on December 17, Tesla shares have lost more than 50% of their value, wiping out upward of $800 billion in market cap. On Monday alone, Tesla shares fell 15%.

2. Skyrocketing prices: Trump has done nothing to curb inflation. The cost of eggs has increased by 53% compared to the previous year. Auto insurance saw the highest price rise among items considered in the core inflation rate at 11.8%.

Prices are 23% more expensive today than they were before the coronavirus pandemic recession began in February 2020. That price burst means Americans need about $1,230 to buy the same goods and services that cost $1,000 when the coronavirus-induced recession occurred.

Prices have also soared in airfares, used cars and trucks, medical care, frozen drinks and juices (up 17%), CDs, DVDs, pet services, textbooks and school supplies.

3. Democratic disgrace: voting for the Republican budget bill.

Ten Senate Democrats voted with Republicans to pass a GOP spending bill, which guts Washington, DC, of $1 Billion and cuts healthcare, nutritional assistance and $23 billion in veterans’ benefits. Former House Speaker Nancy Pelosi (D-Calif.) on Friday issued a blistering statement against Senate Minority Leader Chuck Schumer.

“America has experienced a Trump shutdown before – but this damaging legislation only makes matters worse. Democrats must not buy into this false choice. We must fight back for a better way,” Pelosi said.

The last government shutdown occurred during Trump’s first term, in December 2018. It lasted 34 days, the longest government shutdown in the modern era.

4. A damaging recession: The imposition of high tariffs on imports from Canada, Mexico, and China, as well as a chainsaw-wielding Elon Musk firing government employees at random, will certainly lead to a recession.

Goldman Sachs and Moody’s Analytics joined forecasters raising alarm about the increased likelihood of an economic downturn. “The threat of a recession is real,” said Olu Sonola, the head of US regional economics at Fitch Ratings. “It’s a threat you cannot ignore.”

Not only has the stock market crashed, consumer attitudes have soured, and a jobs report has delivered worse-than-expected results. Unemployment and layoffs will rise during a recession as businesses cut spending or close completely. Forget about wage increases and promotions. The gross domestic product will decrease.

The economic damage had already been done, experts said. Canada and China both retaliated with tariffs on some US imports.

Goldman Sachs saw Trump’s policy changes as “the key risk” to the economy. A JP Morgan report put the chance of recession at 40%, up from 30% at the start of the year, warning that US policy was “tilting away from growth.”

Economists warn that Trump is ‘an agent of chaos and confusion. ‘ Trump is sending the economy in the wrong direction, which will only worsen.