Our financial system is crumbling this week.

[heyzeus]

Everyone ready for day 2? Dow futures already down over 1000 points. I probably shouldn't have checked my 401k this morning. It was...not good.

It's helpful to know I'm going to die at this desk, or possibly driving back home at 11pm after a city council meeting like I did last night. It's freeing not to have hope. But this is necessary to get one or two textile mills paying minimum wage to move back to Ohio.

[Popeye_Card]

But this is necessary to get one or two textile mills paying minimum wage to move back to Ohio.

Appropriate how you mention Ohio. Remember that deal to build a gigantic Intel plant near Columbus? Well that's not going super well. Now delayed to open in 2030+.

https://www.news5cleveland.com/news/pol ... -to-repeal

Even well-intentioned and heavily subsidized plans to "bring manufacturing back to the US" are not quick, and do not always go well.

[Jocephus]

Everyone ready for day 2? Dow futures already down over 1000 points. I probably shouldn't have checked my 401k this morning. It was...not good.

i lost 3600 today...at least so far

[CardsofSTL]

But this is necessary to get one or two textile mills paying minimum wage to move back to Ohio.

Appropriate how you mention Ohio.

It is pronounced the Great State of Ohio.

[Arthur Dent]

But this is necessary to get one or two textile mills paying minimum wage to move back to Ohio.

Appropriate how you mention Ohio. Remember that deal to build a gigantic Intel plant near Columbus? Well that's not going super well. Now delayed to open in 2030+.

https://www.news5cleveland.com/news/pol ... -to-repeal

Even well-intentioned and heavily subsidized plans to "bring manufacturing back to the US" are not quick, and do not always go well.

Who is going to be willing to make investments in manufacturing, that won’t pay off for years, on the idea that a Trump policy, cooked up his interns overnight or whatever, will remain in place?

Might get more utilization of existing capacity by running more shifts and the like, but it seems overwhelmingly downside. The potential upside of more investment doesn’t seem at all likely under these conditions.

[sighyoung]

But this is necessary to get one or two textile mills paying minimum wage to move back to Ohio.

Appropriate how you mention Ohio. Remember that deal to build a gigantic Intel plant near Columbus? Well that's not going super well. Now delayed to open in 2030+.

https://www.news5cleveland.com/news/pol ... -to-repeal

Even well-intentioned and heavily subsidized plans to "bring manufacturing back to the US" are not quick, and do not always go well.

Who is going to be willing to make investments in manufacturing, that won’t pay off for years, on the idea that a Trump policy, cooked up his interns overnight or whatever, will remain in place?

Might get more utilization of existing capacity by running more shifts and the like, but it seems overwhelmingly downside. The potential upside of more investment doesn’t seem at all likely under these conditions.

++

In addition, many firms won't be in a position to invest anything because of the economic shock of these tariffs. These firms now face higher costs, supply-chain disruptions, and cratering demand. Many companies that expected steady income streams and profits will become overleveraged, struggle to rollover debt (that is, only pay interest, not principal) through expensive refinancing, or default and file for bankruptcy.

The gutting of the regulatory state will also depress demand in the long run. If people don't think their food and medicines are safe, that banks are stable, that products are safe, they will be more cautious about buying them. Regulation builds trust in markets, and people will simply be more skeptical of many goods and services in the future.

Additionally, research is a form of investment, and look how the federal government is slashing research subsidies, including at colleges and universities, which benefited businesses indirectly. That's going to kill off or slow investment in the future, as well.

[IMADreamer]

I don't think people have grasp the long term effects yet. The cuts to research and the ability for some companies and organizations to look long term. It's the baby boomer generation literally saying "[expletive] you I got mine" and then blowing up the ladder behind them.

[Joe Shlabotnik]

I don't think people have grasp the long term effects yet. The cuts to research and the ability for some companies and organizations to look long term. It's the baby boomer generation literally saying "[expletive] you I got mine" and then blowing up the ladder behind them.

It's long felt that way. They got their job, pension, affordable home, well funded school, clean environment, and retirement, and they were damn sure not going to provide any of those for those who came later. Now it's clear that democracy itself is part of that list.

But their kids were such smart-mouthed ingrates...

[sighyoung]

I don't think people have grasp the long term effects yet. The cuts to research and the ability for some companies and organizations to look long term. It's the baby boomer generation literally saying "[expletive] you I got mine" and then blowing up the ladder behind them.

But their kids were such smart-mouthed ingrates...
[/quote]

Welcome to the national equivalent of "You want access to this public swimming pool? We'll just defund it and fill it with cement."

The nation's attitude has long been to destroy something rather than let undesirables get it.

H. L. Mencken was right. This is a nation full of self-righteous Puritans who are angry that someone somewhere is having a good time. Can't have that.

[sighyoung]

It's been said that one of the great threats to a republic is concentrated wealth. Now you have the extremely wealthy stripping the country for spare parts and coopted people and institutions going along with it to stay afloat.