Stocks drop after Trump ‘orders’
US companies to leave China
by
Carleton English
Original Article
Posted By: Ribicon,
8/23/2019 1:05:19 PM
Wall Street plunged Friday after President Trump “ordered” US companies to seek alternatives to doing business in China. The Dow Jones Industrial Average dropped more than 400 points moments after Trump launched into a Twitter tirade lambasting China for intellectual property theft and fentanyl shipments to the US. “We don’t need China and, frankly, would be far…better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP,” Trump said in a series of tweets. “Our great American companies are hereby ordered to immediately start looking
Reply 1 - Posted by:
Avikingman 8/23/2019 1:07:48 PM (No. 160108)
Despite the disruptions, I would prefer friendly nations manufacturing products for the US market.
That said, US manufacturers first. MAGA!
23 people like this.
Reply 2 - Posted by:
Safari Man 8/23/2019 1:25:31 PM (No. 160122)
I am getting killed in the stock market because of this, but that's a short term thing. I cannot imagine any of the last 4 presidents doing something like this that is such a risk, but will have huge rewards for the USA. Trump is the man!
(Also, great move to do this right before heading the G7! They should all be trembling.)
24 people like this.
Of course, the president of the United States has not control over where anyone makes, or sources things, and he knows it.
I'm sure this was directed at the media who will be triggered, and claim he's a fascist.
A deal could be made, but they'll never get China to update their laws to prevent the IP exchange for permission to manufacture in China.
It's as if they all know that's part of the deal, and that's globally, not just U.S. companies, and China sees companies continue to set up shop regardless of that term.
Therefore, I'd hope they can work out a deal that works for both sides, but it won't include the Intellectual Property (IP) being enacted into China laws.
4 people like this.
The attempt to "tame" Communist China with trade has failed. This has been known since at least the 90s, but no President wanted to deal with what it meant so they each kept on pretending that just a little more time would do the trick. Trump has finally told the world that the U.S. has given up on the carrot and now is going to use the stick against China. It is a shame someone did not do it sooner.
21 people like this.
Reply 5 - Posted by:
Avanti1 8/23/2019 1:54:58 PM (No. 160151)
What happens to the US National Debt if/when China further reduces their purchases of US bonds?
3 people like this.
Reply 6 - Posted by:
Philipsonh 8/23/2019 1:57:38 PM (No. 160152)
What products that the U.S. imports from China CANNOT be made in other Countries, including ourselves ? Many of the products USED to be made in the U.S. and there is no reason they cannot be manufactured here again.If EVERY corporation is in the same boat, forced to manufacture outside of China, then they are on equal footing. The only reason they went there to begin with is the dirt cheap labor costs and they had to give away parts of their companies to gain entry. How stupid and unPatriotic.
11 people like this.
Reply 7 - Posted by:
DVC 8/23/2019 2:05:51 PM (No. 160163)
I cannot believe that US companies still want to do business with our enemy. China is our enemy.
11 people like this.
Reply 8 - Posted by:
DVC 8/23/2019 2:10:00 PM (No. 160165)
#4, "getting killed in the stock market??" How is that. In the last two and a half years the Dow is up from 16,000 to just under 26,000....an increase in average value of 62.5%. Even if you make NOTHING this calendar year, your 3 year average will be right at 20% per year, if you have the most "brain dead" kind of stock index portfolio.
I suppose you could choose a few individual stocks which might be getting hurt, but IMO, that is not a successful investment strategy for the longer term, like 5 or 10 or 20 years.
I am pleased as punch with the stock market. And my portfolio is booming, and my retirement is more
secure than ever.
16 people like this.
Reply 9 - Posted by:
DVC 8/23/2019 2:12:00 PM (No. 160168)
And, of course, the President has no control over where companies build factories. But this sort of pressure applied by talking has been called "jawboning" for many decades, and Trump did not originate it.
7 people like this.
Reply 10 - Posted by:
Safari Man 8/23/2019 2:25:21 PM (No. 160173)
#8 I on a lot of AAPL and I was referring to the immediate effect of Trump's tweets, not the last two years.
1 person likes this.
Reply 11 - Posted by:
RenoVet68 8/23/2019 2:59:34 PM (No. 160209)
Let's not forget Big Rat Terry McAuliffe helped a company called Loral Space get seats on official trade missions. He reportedly convinced the Clinton administration to overrule national security officials in order win approval for a Loral deal that gave Red China critical missile technology.
10 people like this.
Reply 12 - Posted by:
judy 8/23/2019 3:19:45 PM (No. 160231)
Why are we allowing China to control us?? After all they are a communist country. All the US companies who moved to China should take a ride through Ohio, W.Va, Pa & Detroit & see the decay ! OK companies was it worth it? You got rich, the American people still pay high prices & lost their jobs & dignity! Let's face it folks it was a disaster. When the US made cars, a new car was $3,800 , Now they are $38,000. I say it's time to start boycotting China, they've had a free ride for too long.
13 people like this.
Reply 13 - Posted by:
crashnburn 8/23/2019 3:36:32 PM (No. 160242)
The stock market climbs on a wall of worry, and over-reacts on bad news. If I had some extra cash lying around, this would be a great buying opportunity.
5 people like this.
Reply 14 - Posted by:
F15 Gork 8/23/2019 3:42:23 PM (No. 160255)
If the day to day stock market fluctuations bother you then you probably don’t belong in it.....
13 people like this.
Reply 15 - Posted by:
JackBurton 8/23/2019 4:44:31 PM (No. 160298)
It's August.
The serious traders are at the beach.
2 people like this.
Reply 16 - Posted by:
red1066 8/23/2019 6:28:48 PM (No. 160393)
I went to a teacher supply store a couple of weeks ago, and 90% of the products have Made in China on the label. Maps, U.S. History posters, pens, markers, everything made in China. The Dow dropping over 600 points because Trump wants companies to get out of China, shows where the 1% has their priorities and their allegiance.
4 people like this.
Reply 17 - Posted by:
LC Chihuahua 8/23/2019 7:29:28 PM (No. 160436)
The government is over 20 trillion in debt with an annual deficit of 1 trillion. The government will try to tax their way out of it. They will also try to cut spending. It won't be enough. The only other option is creating more businesses and jobs in the United States thus creating more taxable revenue. Taking back everything that has been outsourced to a hostile China over the last few decades would help fix things.
This is a good move. The era of the United States outsourcing everything may be coming to an end.
3 people like this.
Reply 18 - Posted by:
Rumblehog 8/23/2019 9:48:22 PM (No. 160507)
Go to Europe and try to find cheap Chinese junk. Nowhere to be found. The U.S. is the #1 market for China. We shut their imports off and they starve. It's just that simple.
2 people like this.
I still believe that a selective default on the bonds/bills held by China is a reasonable answer and just retaliation for China's many sorts of economic cheating. We'd get back some of what has been stolen from taxpayers and workers. Bonds held by other friendly nations and private citizens would be secured and recognized as legitimate debt. Couple that with REAL reductions in gov't spending and the economic boom would become an absolute explosion. BTW, the whole world's economy would benefit---minus China's, that is.
0 people like this.
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Hmm. I would welcome alternatives to junk made in China.