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

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.

Comments

TeethVillage88s Yukon Cornholius Mon, 10/16/2017 - 12:16 Permalink

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)

In reply to by Yukon Cornholius

Fireman Mon, 10/16/2017 - 12:09 Permalink

"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

Irvingm Mon, 10/16/2017 - 12:13 Permalink

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

TeethVillage88s Mon, 10/16/2017 - 12:20 Permalink

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.

Silver Savior Mon, 10/16/2017 - 12:44 Permalink

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. 

BitchesBetterR… Mon, 10/16/2017 - 12:40 Permalink

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 Mon, 10/16/2017 - 13:14 Permalink

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 Halloweencostume of a thin-skinned blowhard.