The Honeymoon Is Ending: Angry Wall Street Traders Slam Trump, Warn Next Move Is Lower
by Tyler Durden
ZeroHedge.com
Jan 30, 2017
It appears that Wall Street’s nearly 3 month honeymoon with Trump is ending. Because no matter how much the courts or public pressure force the watering down of Trump’s immigration order, Bloomberg’s Mark Cudmore warns that “the long-term damage to Brand USA has been done.”
Here is why “trader #1” is angry:
With a few hasty pen scratches, Trump has confirmed that he is impulsive and liable to act without concern for convention or precedent or, it seems, the law. At the margin, the premium for U.S. assets will now be eroded.
The U.S.’s place at the centre of global financial markets is partially based on the perception that the country generally acts in the logical long-term interests of business and capitalism. The rule of law is strong and you can have faith that your rights will not be unjustly or arbitrarily curtailed.
Trump actions — his willingness to trample the rights of selected classes of people — shatter those well-established assumptions. The consequences may be slow to play out but are manifold. The attraction of the U.S. as a base for wealthy individuals, multinationals and skilled workers has just been marred. A new risk has been introduced.
The message is that, if you choose the U.S., your life could be disrupted at a moment’s notice.
It’s not like this is just one erroneous measure that can be chalked off as an exceptional mistake by Trump. Instead, it’s the icing on the cake of his administration’s first week in power, where it was abundantly clear that protectionism and isolationism are the priority.
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