Trump tumbles: The dangers of ignoring a reeling stock market

特朗普跌落:忽视摇摇欲坠股市的危险

Editor's Picks from The Economist

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2025-03-25

7 分钟
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A handpicked article read aloud from the latest issue of The Economist. Donald Trump's administration seems unconcerned by recent hits to American financial markets. But with historic numbers of citizens invested in them, a prolonged slump would have a severe economic and political fallout. Listen to what matters most, from global politics and business to science and technology—subscribe to Economist Podcasts+. For more information about how to access Economist Podcasts+, please visit our FAQs page or watch our video explaining how to link your account.
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  • The Economist. Hello, Mike Byrd here, co-host of Money Talks,

  • our weekly podcast on markets, the economy and business.

  • Welcome to Editor's Picks.

  • We've chosen an article from the latest edition of The Economist,

  • which we very much hope you'll enjoy.

  • The Trump administration has been extraordinarily blasé about falling stocks.

  • I can tell you that corrections are healthy, they are normal, said Scott Besant,

  • America's Treasury Secretary on March 16, in the government's most recent shrug.

  • The blip in America's long stock market rally,

  • the S&P 500 index is down by 8% from its all-time high in February.

  • may have been prompted by Donald Trump's enthusiasm for tariffs,

  • but it has been exacerbated by the perception that the new administration is quite relaxed about things and therefore likely to continue pursuing damaging policies.

  • Mr Trump's team is playing with fire.

  • As markets of swords and tech has made investing ever simpler,

  • Americans have rushed into stocks.

  • At the end of last year,

  • households and non-profit organisations held $38 trillion in shares of listed firms.

  • The value of their holdings has exploded, climbing by 128% over the past six years.

  • All told, such holdings are now worth 1.7 times America's disposable household income,

  • which is more than twice the historical average and near the highest level on a record that stretches to 1947.