For a long time CNBC Talking Head Jim Cramer warned that the economy could really 'crash' if Donald Trump continues with his tariff program.
His strict words came after the White House had announced a baseline 10 percent rate for all imports, with effect from 5 April, with higher rates for countries that impose steeper tasks on American goods.
Dublynchronized 'Liberation Day' by the president, the announcement on Wednesday led to the worst two -day wipeout in Wall Street in history – with $ 5 trillion wiped the value of US shares.
Stocks crashed again on Friday, because it seems increasingly likely that President Donald Trump's rates will cause a global recession.
Cramer, one of the star commentators of CNBC, such as among those who believe it could use a full market crash and said, “I can't think of any reason why you would buy a share.”
“If you wanted to crash the market, I think you would go with this game plan,” he said about Friday.
Although there is no specific threshold for a crash, it is generally considered a sudden decrease of 10 to 20% over different shares in the market.
For a long time CNBC Talking Head Jim Cramer (photo) warned that the economy could really 'crash' if Donald Trump continues with his tariff program
The White House announced a Baseline 10 percent rate on all imports, with effect from 5 April, with higher rates for countries that impose steeper tasks on US goods on Wednesday, which Trump explained 'Liberation Day'
Cramer referred to Trump's current strategy as a 'they know nothing game plan'.
“It should not be in the interest of our country to have the market crash,” Cramer added.
Cramer surprised anchor Carl Quintanilla by saying “I don't care” if he asked if he said this, so he would “be written” because he said it.
Quintanilla even warned Cramer that it was against the network policy to use that specific word and to literally mention: “We don't use that word on this air.”
Cramer interrupted: “No, I just say if you've fished on Thursday Bottom-Fishing Thursday and if you fished on Friday in 1987, you slept with the fish on Monday.”
He praised people as a few advisers from Trump, such as Peter Navarro and Finance Minister Scott Bessent, but believes that they would not tell Trump that he is wrong about the issue.
'[Bessent] Wouldn't even go to the president and say: “Look, we don't really want a crash. You don't want to be that difficult. Maybe you do the Tiktok deal. Maybe you say, look, but here is a way to heal things, “as Nvidia did with Taiwan.
“Instead, he said:” They can get a crash, I don't see why not. Why would you buy shares? “”
Cramer (photo) referred to Trump's current strategy as a 'they know nothing game plan'. “It should not be in the interest of our country to have the market crash,” he added
Cramer wondered if Treasury Secretary Scott Bessent (photo) could change Trump's thoughts on the rates
Trump made the announcement on Wednesday afternoon in the Rose Garden of the White House and revealed wide rates of 10 percent – with even higher rates for certain countries. This comprises 34 percent on China and 20 percent on the European Union.
The president used aggressive rhetoric to describe a worldwide trading system that the United States helped to build after the Second World War and said: 'Our country has been looted, looted, raped, looted' by other nations.
He has promised that factory jobs will return to the United States as a result of taxes, but his policy risks a strict economic delay, because consumers and companies can be confronted with competitive price increases on cars, clothing and other goods.
US shares have lost around $ 9.6 trillion in value since January 17 -the Friday before President Trump started his second term, according to Marketwatch analysis Dow Jones market data.
About $ 5 trillion of this was wiped out on Thursday and Friday only what the largest two-day loss of shareholder value has ever been registered, according to the data.
Markets have seen greater percentage decreases, such as in 1929, but never so much in dollars. Wall Street's largest two -day plunge came during the 1929 crash, when the Dow tumbled around 25% on 28 and 29 October.
The massacre has struck ordinary Americans whose pension savings, including 401 (K), are bound by the market.
The flagship Dow Jones Index of America's 30 largest companies dived an amazing 2,200 points, the largest daily decrease since June 2020.
It came after China had imposed new rates on all American goods in response to the radical taxes of the Trump, escalating a global trade war.
But in panic by Americans who checked their 401 (K) S, IRAs and trade apps, it was advised to sit tight now and not to panic. They have to speak with the experts who manage their investments and look for a financial adviser if they don't have one.
