Not to ruin everyone's imminent doom fest here.....
But just for the record, let's look at what a real 'plunging' economy looks like on a stock market crash.
That's 1929 to 1932, where the market dropped consistently, year over year, for 3 years straight.
This is the DOW over the past year. There is absolutely no indication of a consistent decline in the market, that would indicate a serious long term economic crash.
Now it is true that the market is clearly wobbly. That doesn't mean the economy is. There's a difference.
The reason the market is so wobbly is not because of any actual change in the economy itself, but rather that the market is reacting to possible future policy. And Trump is extremely wobbly on this. One minute he says it's going to be a massive tariff, then only a minor tariff, then it will be large but temporary tariff.... all of these things is making the market jittery.
How do I know that's the reason? Because tariffs always cause a trade war, and a trade war always damages the economy.
This was true back in 1929 as well.
In that picture I circled one part where you see that the market started to recover.
Do you know why? There is actually a specific reason why in 1930, the market started going back up.
In 1929, Hoover was elected on a platform that included massive protectionism. In late 1929, that tariff bill started moving through congress, and Hoover openly pledged to sign it.
That's when the market crash began. People in the industry understood that this would crash the economy, and started selling off stocks, because those companies would end up damaged by the trade war.
Then in early 1930, the Senate and the House, failed to reach an agreement. The people in the House of Representatives, were against tariffs... and the bill was effectively dead.
When the Tariff Bill got stuck, the markets started to recover. That's what you see in that circle.
Mid to late 1930, a bunch of house members who were against protectionism, rolled over and passed the bill. All the recovery of the market disappeared, and the crash continued for the next 2 years.
So all that, to say this.
When Trump first got into office, he was planning a massive tariff on everything. That would have destroyed our economy. When you look at the DOW, the biggest drop was when Trump was first elected and pledged tariffs.
Now, he's talking more about 'targeted' tariffs, on a select number of goods, that could be temporary. So you see the market going up when he says somethings, and down when he says others, and it wobbles all over the place.
I personally am of the opinion that there will not be a crash like 1929. I don't think the people around Trump, will let him tariff the economy into destruction. I think we will avoid a trade war.
But... if it does happen.... then we could be in for a recession.
There is one key difference between our economy today, and that of 1929.
In 1929, everything was about steel, and iron, and imported goods, and exported goods.
In today's economy, many of our largest companies are in the information and services business. We're not nearly as dependent on steel and iron, as we were in the past. So even if Trump were to put in place large tariffs, I don't think the damage will be as extensive as it was in 1929.
Lastly.... and I just have to throw this out there.
On a Christian based forum like this, we all know the book of revelations says that there will be a world wide economic crash. And we can see how this crash could happen, given how many of the all the 1st world countries are up to their eye balls in debt.
But if you really are trying to pull all your money out and buy gold.... who do you think you are going to sell your gold to? If the entire economy crash, no one is going to buy your gold from you.
And you prepers, you likely shouldn't be on a forum, talking about prepping. Because the police are not going to protect you. Someone seeing your name on a forum talking about prepping, is just going to make you a target of the mob. Literally.
