r/wallstreetbets • u/abishop717 • 1d ago

Discussion 5 rate cuts 😮

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u/suspense99 1d ago

Would you explain to me who is trying to understand this? Why would trump want this? Trying to figure out his end goal. I'm trying to learn

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u/idunnoiforget 1d ago

Listen to what Trump says about it. He wants other countries to pay their fair share through the tarrifs and stop taking advantage of America and bring back American manufacturing. And if you assume that he is not lying and means what he says then the only real logical conclusion is that he is an illiterate moron with an understanding of economics that is less than that of a second grader.

The finance YouTubers will have you believe he's intentionally crashing the economy in a 4D chess move to force the Fed to lower rates so that the national dept can be financed at a lower interest rate.

And there's the theory that he's crashing markets so he and his rich friends can buy up things for pennies on the dollar and basically copy paste the oligarch structure that was formed in Russia after the collapse of the Soviet Union.

Realistically it could be a combo of the above

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u/one_excited_guy 1d ago

And there's the theory that he's crashing markets so he and his rich friends can buy up things for pennies on the dollar and basically copy paste the oligarch structure that was formed in Russia after the collapse of the Soviet Union.

can anyone explain how theyre gonna do that when their assets are evaporating at the same speed as or worse than the market? what money are they gonna use for this

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u/idunnoiforget 22h ago

what money are they gonna use for rhis

If their money isn't all tied in assets with fluctuating value, they can directly buy smaller companies. Or they can finance it with their Assets as collateral. even if their billion shares of TSLA fell 40% that's still a big chunk of change that can be borrowed against and used for buying more things at the bottom.

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u/one_excited_guy 19h ago

If their money isn't all tied in assets with fluctuating value

but it is.

Or they can finance it with their Assets as collateral.

they couldve done that at higher valuation of their assets, so this is only profitable for them if their assets tank significantly less than the market since they'll be paying a whole bunch of interest.

even if their billion shares of TSLA fell 40%

the above doesnt work then because the whole market didnt tank 40%, but TSLA did.