The Day Before - Sunday April 6th 2025 Entry. What will happen to the markets tomorrow? More fall out from Recession Day

The Era Trump is taking the US to

April 6th 2025 

Tomorrow morning we will see what the markets will do. I have no way to know what will happen but here are some scenarios:

1. Trump removes all the tariffs and amidts he was wrong. I think this is highly unlikely but would be best thing Donald Trump could do to stop the economic melt down in the United States. 
2. The market holds for Monday because of value investors buying into the market. This might be possible but I do not think it will happen because there are not enough people willing to do this. The scale of the losses are higher than could be counteracted by some contrarian investors. You would need to mobilize multi trillions of dollars to have this happen. 
3. The sell-off continues and we see another 10% to 15% drop in the markets on Monday. I think this is most likely. Where will the sell-off end? That is a very good question and no one knows the answer to that. Imagine the Big Three and Walmart going bankrupt, what will that do to the American economy and the markets? 
4. The sell off is so bad that trading is halted on American exchanges. A halt would spook the shit out of the markets and when they reopened they would crash harder. I think this is the second most likely outcome. 
5. The Republicans grow a backbone and stop Trump - I think this is highly unlikely. Even if Trump were to take all the tariffs off and apologize for his extreme blunder things will not return back to normal. It will just not get as bad. 

I do not see a path in which the United States does not avoid a bad recession. I do not see how they avoid 10% to 15% unemployment. I do not see how they avoid high inflation for the next year or more. 

The crazy part is that the US is putting tariffs on things the US can not produce. Bananas, chocolate, and coffee are all being tariffed. It means the prices for all of these things will rise 10% or more in the next MONTH, not year or decade, MONTH. 

 The only saving grace for the Americans is that new tariffs on Canada and Mexico were not introduced on Recession Day. Still, the impact on the American car industry is catastrophic and will likely lead to a 30% to 50% drop in car sales in the US in the next year.

Enough for today.