The American economy threatens to collapse through the chaotically actions of Donald Trump

The British weekly “The Economist” pointed out that American investments on the stock exchange have been at the highest level since 1947, and according to the American brokerage company Interactive Brokers, the number of customers has increased significantly, who borrow to play on the stock exchange, using the so -called Margin buying. At the end of 2024, the value of loans that the Americans took from their brokers for such purposes reached $ 54 billion.

In this situation, it would be very dangerous, because buying shares based on a loan taken out in a brokerage company threatens large losses when declining; Meanwhile, in mid -March, the wide S&P 500 index fell by 8 percent. compared to the historical summit of the liberation of February. On April 1, waiting for the effects of subsequent duties announced by the president's administration Donald Trumpthe shares ratings were falling again.

Trump's policy undermined the mood of investors. The president himself, who formerly proclaimed that Wall Street reflects the state of real economy and was afraid of declines, announced that now “short -term pain” on the stock exchanges would lead to a thorough healing of America.

However, prof. Wachowiak emphasized in an interview with PAP that the source of anxieties that cause decreases to Wall Street is Trump's policy and the impression of the chaos caused by the moves of his administration.

– (Trump) makes decisions, then withdraws, and capital markets are very sensitive to such decisions. For markets, for investors it is very important how the most important person in USAbecause it must be noted that the position of the President of the States is different than in other countries, for example in Poland. The President of Poland has other tasks, and in the United States the president is also responsible for the economy – said the rector of the SGH.

In a recent editorial article, The Washington Post noted that in America he made itself felt by a disturbing trend among investors, known in economics as “uncertainty of the government system”. If there are constantly changes in government policy, investors and companies have difficulty predicting whether their investments will be profitable. Therefore, this time the markets reacted with declines to the inconsistent Trump's policy. “The market never lies (…). And always says what it thinks,” says the editorial article of the Washington newspaper.

– For now, we have chaos, and chaos is the worst thing (for investors). And uncertainty is the worst for enterprises and consumers, because it is a blind date, and such a date rarely succeeds. This causes everyone to expect what will happen, i.e. consumption decreases, investments are reduced, and the economic slowdown occurs – assessed prof. Wachowiak.

He pointed out that in the US “the trust index is the lowest since 2009; in December – February fell by 11 percentage points. And what is even worse, the trust of consumer moods fell by 9 percentage points and this is the lowest level since 1978.”

– Two -thirds of the American economy are consumer expenses, and only a third are investment expenditure – reminded the rector of the SGH.

Meanwhile, the Americans behave like in the 1920s, when they were massively indebted to invest in the stock exchange.

– I don't think we'll be back to the 1920s, but let's remember 2009, when there was also a crash. We have learned a lot since then and maybe we will not let it this time. But the risk of recession in the American economy is high – said prof. Wachowiak.

As “The Economist” explains, investing on the stock exchange has become easier thanks to new technologies, and the bull market persistent for a long time additionally prompted Americans to buy shares. At the end of 2024, the assets of companies worth 83 trillion dollars were in the portfolio of private farms and non-profit organizations. Now the most serious threat is that the possible “death spiral” that capital markets may fall into will translate into a real economy – warns the weekly.

In another article “The Economist” assesses that investors “the earth is removed from under the feet” and the effects of “tectonic changes” caused by Trump's policy will be felt “for a long time”.

“Now that American markets are cut with a chain saw by uncertainty about Trump's tariff policy and deep cuts (staff) in federal administration, investment advisers direct clients to other capital markets of the world,” wrote “The New York Times”. And if this trend persists and investors will “withdraw money from American shares and place it on foreign markets, then the pressure on sale will increase, which (…) caused the correction (index) S&P 500” – added the New York daily.

“The Washington Post” forecasts in connection with the turmoil on the American markets and customs of Trump “permanent damage to economic activity in the world”.