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Platypus Economics with Justin Wolfers Podcast
Are Markets Getting Suckered By Trump's Truth Socials? | Diving In

Are Markets Getting Suckered By Trump's Truth Socials? | Diving In

Platypus Economics with Justin Wolfers vor 2 Monaten

0:00

8:24

What happens when markets have to price the risks of war and
presidential credibility at the same time? In this episode,
Justin Wolfers explains why U.S. stocks keep rising and falling
with Trump’s Truth Social posts, despite their questionable
truthfulness. The core point: even if investors discount what the
president says, they continue to react because the stakes are so
large.

And the repeated claims that peace is just around the corner
create a deeper problem. If investors come to treat presidential
statements as noise rather than signal, markets may respond less
than they otherwise would. That matters because Wall Street can
act as a feedback mechanism, warning policymakers when a decision
is economically dangerous. If that feedback loop weakens, bad
policy is likely to last much longer.

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