Re:Carl Icahn is Betting on a Stock Market Crash
by snowwrestler on Wednesday May 11, 2016 @12:54PM
(#11676983)
Markets crave financial stability and Trump is impulsive and seems to either not understand, or not care, about the long-term effects of the policies he mentions.
One example is his plan to get Mexico to pay for his wall, which involves holding hostage the wire payments that flow from people in the U.S. to their relatives in Mexico.
Financial institutions make money on those payments, but from a broader perspective the concept of holding capital flows hostage to policy ideas is deeply scary to Wall Street.
What if Trump decides that capital from Middle East sovereign funds will be hindered until they pay a greater share of the cost of fighting ISIS? What if he decides to hinder capital flows from China until they let their currency's value rise more? Etc.
One example is his plan to get Mexico to pay for his wall, which involves holding hostage the wire payments that flow from people in the U.S. to their relatives in Mexico.
Financial institutions make money on those payments, but from a broader perspective the concept of holding capital flows hostage to policy ideas is deeply scary to Wall Street.
What if Trump decides that capital from Middle East sovereign funds will be hindered until they pay a greater share of the cost of fighting ISIS? What if he decides to hinder capital flows from China until they let their currency's value rise more? Etc.