Donald Trump has heavily taxed the stock markets in recent days. A few hours before his U -turn, he did a “purchase” recommendation on his social social platform. What happened then have critics of prior knowledge trade.
Does Trump’s inner circle run illegally from the enormous fluctuations on the stock exchange? Democrats such as the US Senator Adam Schiff are now making serious accusations against the president. The Republican is said to have deliberately delivered courses that in recent days fell due to his customs confusion from the past days to be able to enrich himself personally.
It is certain that the American president started something great on Wednesday. The 78-year-old placed about four hours before his customs turnover in large letters: “Now is a great time for shopping !!! DJT.” Moments later he declared the reduction of his flat -rate rates for dozens of states.
High risk gambling causes excitement
The stock market courses went through the ceiling. Everyone who has sold too many losses in recent days remained at least but even more explosive: a few moments before the US president weakened his customs club, extremely risky tire market betting were circulating. Speculators bought this -driven option certificates and set up the courses. The volume of these bets was unusual.
Speculators benefited enormously. Even “zero-day options” were purchased. This means that these gambling ends until the end of the day and become worthless if your own prediction does not occur. Those who trust rising courses could earn more than $ 2 million in a few minutes. The return was 2100 percent, according to the market observers of “unusual whales”.
Critics suspect that insider knowledge has been used. However, there is no concrete proof of such actions. In the last few days, the rumor in Washington circulated that the US president could weaken his rates for 90 days. This was discredited by the White House as a “falconacial clearance”. Four hours after his recommendation “purchase”, Trump did exactly that.
Financial supervisor: “Insider trade is not worth it!”
Does it all fall under Insider Trade? At the request of krone.at, the Interior Financial Market Supervision (FMA) announced: “We cannot comment on specific cases, but in fact the following applies: if an information causes a massive response to the markets, then we ask ourselves as a supervision: first, who had this information before it was announced? And one who quickly experienced the information?”
And further: “We are investigating this from ourselves when there are extraordinary price movements, but even if banks report suspicious transactions, or if we receive tips on our platform for anonymous information, for example, we will determine who had the information when. And at the banks we will collect the trade data to find out who has made the commercial data that what transactions have done when. Insider trade is not worth!”
What does Trump say?
Until now, the White House has not given any specific answers to the Time Beam of Trump’s decision -making process. The American president himself gave a confused answer when he decided to turn his turn.
“I would say this morning,” he said on Wednesday. “I’ve thought about it in recent days.” Then he added: “Pretty early this morning”. What would speak for the fact that at the time of his “purchase” recommendation he already considered a weakening of the rates.
“It is the responsibility of the President of the United States to calm the markets and Americans with regard to their economic security, even if the media constantly extend,” wrote the Witte Huis spokesperson, Kush Desai, at the request of the AP News Agency.
What could have been reasons?
Economists also say that Trump probably had no choice but to pull the emergency brake. In the night of Wednesday it became clear that investors could sell American government bonds that the state finances would have brought into enormous imbalance. Market observers think that this could have caused the customs break. The American Handelsminister Howard Lutnick denied this in an interview by the Omroep CNBC.
As the reason for his surprising change, Trump himself said that “people” had become a bit restless and “a bit anxious”. It’s just important: “You have to be flexible.”
Trump sharing is increasing enormously
Irritations also ensure that he completes his “purchase” recommendation with his initials “DJT”. The acronym is also the stock symbol of the Trump Media and Technology Group, the parent company of the Social Media Platform of President.
It is not clear whether Trump said that the purchase of shares in general or Trump media in particular. The White House has refused to say so far. Trump occasionally concludes his news with his initials to emphasize that he personally wrote a message. For shareholders, however, it was enough reason to invest disproportionately in his company.
Trump Media (DJT) closed on Wednesday with an increase of 22.67 percent. The share rose twice as strong as the broad market – an amazing performance for a company that lost $ 400 million last year. Trump’s 53 percent participation in the company is managed by his son Donald Jr. And is now worth $ 415 million more than 24 hours ago. A nice plus for a deficient company. Or as his followers would say: “The art of the deal.”
By the way: the richest people in the world increased their common net assets after the U -Turn of Trump by $ 304 billion. This is the largest day of the day in the history of Bloomberg Billionair Index.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
