One way to ensure your reelection as president is doomed is to infuriate Wall Street. Last week, Trump infuriated Wall Street, and he now must run not only against a Democrat, but an interest group with immense power.

Lets look at how Trump cost the world $6 trillion, or 12% of American investment.

An epidemic brings so many “unknowns” as the nation and all its interests push into the future, near and long term. It impacts private citizens. We wonder whether we or family will get it and suffer unknown consequences (especially the elderly). Additionally, it may impact our jobs, and even social life as events may get canceled.

The unknowns also impact the people whose job it is to predict the economic future, near and long term. These people and institutions thrive on stability and positive indications that the future will be one with growth.

When the institutions see instability and unknowns, it has to protect itself, just like families. The Trump administration looked and sounded completely chaotic and unprepared throughout the week. Trump’s Wednesday press conference did nothing but increase fears.

The investment banks and other institutions bailed on the market last week, shedding near 4,000 points, or 12% of the total value in the S&P 500 market, or $6 trillion. Thus, the people with money invested in these markets now find themselves $6 trillion dollars down from last Monday. In effect, $6 trillion disappeared in thin air. It is unknown when it might build itself back up. From Business Insider.

Stocks plunged last week and entered a correction amid escalating fears of the coronavirus’ spread and the damage it could inflict on the global economy. When all was said and done, the S&P 500 had suffered its worst week since the financial crisis – October 2008 to be exact.

The drubbing erased more than $6 trillion in market value in just five days, according to S&P Dow Jones Indices senior analyst Howard Silverblatt.

The market was going down anyway. The virus will bring its own unknowns just inherent to its nature. BUT, had institutions seen a level-headed response, with strong experience and pre-planning, all under a competent and steady hand, it would not have plummeted this far. Perhaps the fall would only be half the 12%, maybe only 2%, perhaps.

We will never know, and that’s the problem. We only know that the response to the Trump administration was extremely negative because of the abject incompetence seen over the week.

This weekend made it worse, with the disease and the man and team overseeing it. There is no reason to think that the markets will bounce back this week or hold steady. Perhaps it will. Perhaps it will fall another 8-12 percent, suddenly erasing 20% of value, perhaps 25%, there is no floor.

Most Americans do not have stock invested directly. However the market goes beyond investment value. It can dictate employment and prices that do impact families throughout the U.S. That $6 trillion erased may have formed the framework upon which many people’s income rested.

The only thing we can know with certainty is that the Trump administration exuded incompetence and lack of readiness. The response surely drove the prices down. Just another dent to the nation’s standing in the world and at home. Just one more among many others outside the market.

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Peace, y’all

Jason

[email protected] and on Twitter @MiciakZoom