Lemon LIVE at 5 | Make It Stop: Economic Chaos and Collective Stress - April 8th, 2025
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What is the main topic discussed in this episode?
Hello, everyone. Welcome to Lemon Live at 5, a very special show. Wait till you see who my guest is. I know you're going to love him. I know you already love him. You're going to be very excited about who the guest is today. By the way, I get lots of feedback about that music. People love it. And they said, why do you make fun of it? I said, because my producers call it boomer. music or my social producers good evening everyone welcome to lemon live at five so you guys may remember this morning i questioned why the dow was doing so well why days after this massive losses uh that it was so high in the green and remember i told you don't hold your breath that this wouldn't last Well, I was 100% right. U.S.
stocks crashed once again in the afternoon trading and ended sharply lower than where they started off. The S&P 500 narrowly avoiding a bear market after the White House said it plans to move forward with a threat to bring the overall tariff rate on China to 104%. That tariff rate will go into effect at 1201. I have a lot to tell you here, but let's just say... that the market crashed after that. And so joining us now to discuss all of this market crashing and everything is none other than Mr. David Pakman. He is someone that you recognize and you love. And by the way, just so you know, I have this new book. We're going to talk about that. And it's called The Echo Machine. It is fantastic. It's already on the bestseller list.
David, welcome and congratulations. We'll talk about your book in a bit. How are you doing? Thank you. So good to see you. Yeah, good to see you as well. So 104% tariffs on China. Here we are.
Why did the stock market crash again after the Dow's brief recovery?
We thought that there would perhaps be a recovery Tuesday after a Black Monday. And now here we are. Do you know what's going on in your journeys around these streaming streets? Well, nothing has been resolved in terms of being able to predict what's going to happen. The stock market is fundamentally a futures market in the sense that if you put tariffs on today, that doesn't cost the companies their next year of revenue today. But the reason the market goes down today is the expectation that profits will be lower for the foreseeable future for as long as these tariffs are in place. And we saw on Monday when this false rumor about a 90-day pause, went out that the stock market briefly went up and then back down as it was revealed that that is not true, that the Trump administration is not considering a 90 day pause today.
It seemed as though maybe there is going to be an opportunity for negotiation. And I saw fourteen hundred points up at one point. The Dow was and I said I didn't make as strong a prediction as you did. I said it could easily end down. I don't know that it will, but it could easily end down today. And as you pointed out, it did. And it's because fundamentally nothing has been resolved. The tariffs are an import tax, which will make things more expensive in the United States. That'll slow down purchasing. That hurts the companies on these stock exchanges. It's really that simple. Well, I think, listen, I think people are looking for any sign of relief. It's just that what happened yesterday when there was this rumor, right, this misplaced rumor, and that caused this huge swing in the market.
I think that shows you that people are just looking for this to stop, anything to stop the bleeding, and they will jump on it. That's absolutely right. And I understand it. I mean, 11.7 percent down since March 24th. That's crazy.
How will the announced 104% tariffs on China affect prices and companies?
One of the worst stock market starts in the first 50 trading days of a presidency since Nixon leading into Watergate and George W. Bush in 2001. I mean, this is a disaster. And, you know, one of the kind of interesting things about it is they keep pushing this idea that this is short term pain for long term gain. but they're unable to articulate the path to the long-term gain. I know generically it's, this will bring manufacturing back home, but history tells us that that's not quite so simple and it's not really likely to happen. So they're not actually explaining how we transition from this into the booming growth that they've been predicting.
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Chapters
5 chapters
1
What is the main topic discussed in this episode?
0:15–1:50
2
Why did the stock market crash again after the Dow's brief recovery?
1:50–3:38
3
How will the announced 104% tariffs on China affect prices and companies?
3:38–26:56
4
Can U.S. manufacturing realistically move supply chains back from China?
26:56–37:07
5
What economic arguments do critics like Rand Paul and Elon Musk make against tariffs?
37:07–1:06:43