For decades, the U.S. financial system has been regarded as one of the most stable and powerful in the world. Now, there are fears that something unprecedented may be happening as a result of Trump’s tariffs: Investors everywhere may be losing their faith in the United States.
The concerns come as Wall Street is being convulsed by an extremely rare event: Stocks, U.S. government bonds, and the dollar are all taking a hit at the same time — and not everybody can agree on why.
The most pessimistic fear is that the sell-offs mean that investors around the world are losing trust in the U.S. as a result of Trump’s unpredictable policies — and they are therefore cutting their investments across the board.
If true, it would represent a seismic change in the global financial system, in which the U.S. is no longer considered as a haven.
Yeah, duh. Who thought putting a certified lunatic in charge wouldn’t have any downsides? This was all completely predictable.
Why do we keep using the word “losing”? If they are selling off, they’ve “lost” the trust/faith/whatever…
They likely have not sold everything. The amount of trust/faith lost is reflected in how much they still have.
I don’t think there is any doubt to the why, the US has lost a lot of trust people placed in it, and therefore investments don’t feel safe. I haven’t even heard anyone argue that.
