"There Are Just Too Many Things Wrong With The Country!" - How Trump Handled The '87 Crash

Tyler Durden's picture

Thirty years ago this week, the stock market took a massive nosedive, a crash that came to be known as Black Monday. Many investors were destroyed by this one day's collapse, but, as we noted earlier, some survived (and even fewer thrived).

A few investors said they predicted the crash, including one familiar name: Donald Trump.

While now-President Trump is crowing about the surging stock market almost every day (for instance today)...

The Wall Street Journal reported at the time that the real estate executive said he sold all his stocks before the market tanked. He wasn’t too optimistic about a rebound in stock prices.

Why?

“There are just too many things wrong with the country,” he said.

It would take 15 months for the Dow to return to its Oct. 16 level.

They told you so!

 

Some investors predicted the end of the bull market before the past week's collapse, or sold off big positions within the past few months.

 

They include real-estate tycoon Donald Trump, corporate raider Asher Edelman, and private investor Jim Rogers.

 

In interviews yesterday, few of these investors were forecasting a quick turn-around.

 

"I sold all my stock over the last month," said Mr. Trump. "The timing was no different than the Grand Hyatt - what do you think of it?" The Grand Hyatt was a successful hotel project Mr. Trump undertook in Manhattan in the late 1970s at the tail end of New York City's fiscal crisis.

 

One market source says Mr. Trump made about $175 million during the stock market's move up, partly by playing such takeover targets as Allegis Corp. and Holiday Corp., but has sold most of his $500 million portfolio.

 

"I think the market is going to go down further." he said, because "there are just too many things wrong with the country."

 

Referring to the current U.S. trade deficit, Mr. Trump explained, "The U.S. cannot afford to lose $200 billion a year while Japan and Saudi Arabia are making tremendous profits and the U.S. is paying totally for their defense."

 

Mr. Trump said it's more difficult for the U.S. to close the trade deficit because it doesn't have free trade with Japan.

Full WSJ story below...

That was 30 years ago - Trump's concerns about trade deficits and "things wrong with the country" ring a very familiar bell.

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OneStinkyDinky's picture

Wonder how many of his supporters in the midwest have benefited from this ... did they all pile into TSLA, FB, etc?

Yukon Cornholius's picture

Pension and hedge funds state there will be no market crash.

TeethVillage88s's picture

What could be wrong?

... to say that markets work because they are regulated, protected from fraud, investors are protected from brokers,... that insiders are not allowed to Ponzi like Enron & Bernie Maddoff, MF Global, Peregrine,...

Well... you are beat by HST, Algos as well.

Deregulation Plans,

1913 - Federal Reserve Act
1964 - Gulf of Tonkin, Congress gives up War Powers, Legislative Powers, and Budget Powers
1968 - US Congress over-budget due war, currency in trouble
1971 - Smithsonian Agreement, decoupled USD from gold standard,
1973 - War Powers Resolution (Allows 60 days combat/war without congressional declaration)
1974 - Federal Energy Administration Act of 1974 (R. Nixon)
1978 - Bankruptcy Reform Act of 1978,
1980 - Depository Institutions (J. Carter, followed by S&L Crisis, 5000 convictions, RTC)
1981 - Executive Order 12287, (R. Reagan, removed price controls on Petrol)
1982 – Garn–St. Germain Depository Institutions Act
1984 - Caribbean Basin Initiative (Free Imports to USA)
1985 - Plaza Accord
1987 - Louvre Accord
1992 - Energy Policy Act (H.W. Bush)
1994 - NAFTA, Deregulation of Trade, 3 Nations (W. Clinton)
1995 - Community Reinvestment Act, the Clinton Admin urged flexibility,
1995 - HUD advocated greater involvement of state and local organizations
1996 - Energy (W. Clinton, followed by ENRON Scandal)
1996 - Telecommunications Act (W. Clinton, cross ownership)
1997 - M2 Money Velocity Top
1998 - Clinton's Kosovo War (over 60 Days)
1998 - Brooksly Born Rejected on her concerns on OTC Derivatives
1998 - Derivatives expanded and were not regulated
1998 - Citicorp & Travelers Insurance Merger
1999 - Gramm–Leach–Bliley Act (Phil Gramm, followed by 2008 Financial Crisis)
1999 - bombing campaign in Kosovo
2000 - Commodity Futures Modernization Act of 2000 (P. Gramm)
2002 - Sarbanes-Oxley Act of 2002
2002 - McCain–Feingold Act, soft money unlimited
2005 - Energy Policy Act (subsidies, excluded clean air Water acts)
2005 - BAPCPA 2005
2005 - CAFTA-DR Ratified,
2008 - 2014 QE & LIRP/ZIRP (B. Bernanke, J. Yellen, B Obama)
2008 - 2012 H. Clinton Emails, known to Executive Branch
2009 - 2014 Continuing Resolutions
2010 - Citizens United v. Federal Election Commission
2011 - US combat in Libya (over 60 days)
2014 - lift ban on crude oil exports (Commodities Deregulation)

Spectre's picture

You forgot one of the bigger ones that have caused all the problems since Dick Nixon took us off the Gold standard in 1971.

Angry White Guy's picture

Well, that was without question when productivity and wage growth de-coupled.  Not that any present day Amecican would even know WTF I'm talking about, but yeah.

BullyBearish's picture

it's amazing what a man will say/believe when his future depends on it...

 

they can try to fool us with the index prices, with the slam down of precious metals, and with the 24/7 msm hasbara but what they can't fool us with is the interest rate...keeping it near zero for 9 years of a recovery SHOULDN'T fool anyone...

Uchtdorf's picture

Two things:

1. Interest rates are still low, and 2. "Lock her up!" Hillary is still walking around free.

Shouldn't fool anyone, but it does. 

mrtoad's picture

fourth on the list??    1971 - Smithsonian Agreement, decoupled USD from gold standard,

Garciathinksso's picture

yeah we need moar government regulation!  government is here to protect us!   you are an ass clown

techpriest's picture

How is the Federal Reserve Act a deregulation plan?

OneStinkyDinky's picture

Still thrilled to ride the coat-tail of prior admin ... another Monday

Erek's picture

The past may or may not repeat, but this "historic" piece sure does rhyme.

Dukes's picture

If nothing else, he's been pretty consistent over the past few decades.  

Fireman's picture

"The U.S. has gained more than 5.2 trillion dollars in Stock Market Value since Election Day! Also, record business enthusiasm." So says Chump.

 

Is he really stupid enough to imagine that USSAN "markets" are actually real in this Potemkin Village (idiot) "economy" of anglozionazi slaughter for the zero 1%?

If so he is even more stupid than Obomber.

 

https://www.youtube.com/watch?v=qkvv10r4rxE

afronaut's picture

Yet both Trump and obama are Waaay smarter than you "Fire-man" not even debatable.

Fireman's picture

Oh how could you....and so pithy too?

I'm fucking shattered by the astounding wit exhibited.

Now fuck off

Vlad the Inhaler's picture

The reserve currency must run a trade deficit.

Irvingm's picture

Do you even know what you are talking about?

Irvingm's picture

Do you even know what you are talking about?

Erek's picture

Hey. Irv! Fix Canada first before heading south of your border!

opport.knocks's picture

The reserve currency needs the strongest military to back it.

The question remains, why are competing reserve currencies not allowed?

Silver Savior's picture

The only real reserve is gold/silver Everything else is donkey dung.

Irvingm's picture

The crash was a buy. Following Shep Wave signals. Everyone has been bearish since Dow Jones was at 9 thousand. Shep gets it right. 

SeaMonkeys's picture

The truth of your statement doesn't make what Vlad said wrong. The U.S. Petrodollar system is predicated on debt. It's not a value judgement. 

bookofenoch's picture

Tyler! The shepwave shill is back!

Go away, you pest!

techpriest's picture

This is a Drupal site... It would take 15 minutes to create an auto-ban script that doesn't require a code change.

http://drupal.org/project/rules

menchivist's picture

I think it is Tyler behind SHEPWAVE

kahplunk's picture

Go pound your shep right in the chilly ring  maybe it will bahh bahhh some good info 4 u

Silver Savior's picture

What if it crashes and is too messed up to come back?

menchivist's picture

What if the fact that these bears here have been bearish since Dow 8,000?  Oh wait.  That is what has happened.

 

oNE TRADER has been getting it right on Zerohedge with the Shepwave calls.  I am convinced beyond any doubt that the rouse for years has been uncovered.  Shepwave is the only ones getting this market right. 

menchivist's picture

you got 10 down votes. I make it eleven.  That must mean you are saying something right. The majority of traders always get it wrong. 

Irvingm's picture

Many investors were destroyed by this one day's collapse, but, as we noted earlier, some survived (and even fewer thrived).  The stupid ones lost

 

kahplunk's picture

"The stupid ones lost"

You're an ass and know nothing at all.

Dukes's picture

I'm blown away that you guys think this is an effective marketing strategy.

TeethVillage88s's picture

If we are creating money at a rate of thousands of dollars a minute, check the debt clock, THEN it follows that the dollar, USD, WRC, is deflating by the same rate, thousands of dollars a minute.

Ergo: Stocks go up since all Western Currencies, all currencies are deflating.

Buy, Buy, Buy... it is Weimar Germany get out in front of it. BITCOIN is going up for the same reason, Deflation of the USD.

gammab0y's picture

On your last on bitcoin, if usd deflation were the reason,  there would be a secular rally in all usd commodities,  not just bitcoin.  It's fine to be long bitcoin but have no illusions on the rally - it is speculative.  Whether that speculation is merited remains to be seen. 

kahplunk's picture

So all those other country's in the same boat don't matter your views are small thinking. Let me guess your American.

kahplunk's picture

So true my savings is toilet paper at .005% interest. I was smart enough to invest 3/4 of it into Pm's and BC the rest has rotted in the bank over the last 2 years.  As savers we just get ripped right up the ass. 

Silver Savior's picture

I feel things are too messed up.

Why do we need the shitty stock market anyway when things like Stellar Lumens are up 86% this morning? And crypto shares  some characteristics of stocks. 

BitchesBetterRecognize's picture

bear in mind Mr Trump sold ALL *his stocks prior to assume the presidency (claiming conflict of interest of course...)   

So Trump has gone full retard by owning the stock market bubble it seems ....  

Deep Snorkeler's picture

Trump lacks crucial knowledge about reality,

science, history and basic middle class living.

All the world's volcanoes are primed against him.

Stewing and fermenting, he wears the Halloween

costume of a thin-skinned blowhard.

Dode415's picture

Does anybody really beleive a word he says when he can't even be honest about his score at golf ?

directaction's picture

Everyone lies about their golf scores.

We've got plenty of other stuff to be upset about with that dotard. 

Mikeyyy's picture

No they don't.  Only the most thin-skinned egotists lie about their scores and cheat.

MrSteve's picture

Shoot 6, write 5, yell FORE, a classic golf scoring mantra.

cheech_wizard's picture

You need to ask Obama about the 19th hole...

YouThePeople's picture

He reminds of the kid who hogs all the pot roast and then cries for ice cream.

autofixer's picture

When you are in the club, you get a heads up. I am amazed at how many Trumpbots still insist he is some kind of outsider. It is reminiscent of the Obamaobots thinking he cared about their health insurance premiums.