Billionaire predicts 'regime shift' after Trump policies prove 'negative for the economy'

[BumRushDaShow]

This discussion thread was locked as off-topic by GP6971 (a host of the Latest Breaking News forum).

Source: Raw Story

February 21, 2025 8:45PM ET


One billionaire investor is predicting a sharp policy reversal from President Donald Trump's administration after his policies caused shock throughout the economy. CNBC reported Friday that Steve Cohen — the billionaire hedge fund manager who owns the New York Mets baseball team — is bearish on the economy in the wake of Trump's signature policies.

He specifically mentioned Trump's mass deportations of undocumented immigrants, layoffs of thousands of federal workers due to budget cuts and the tariffs he imposed on goods imported from overseas. "Tariffs cannot be positive, okay? I mean, it’s a tax,” Cohen said during a talk in Miami Beach, Florida. “On top of that, we have slowing immigration, which means the labor force will not grow as rapidly as ... the last five years and so.”

Cohen, who is ranked by Forbes as the 39th richest person in the United States with a net worth of $21.3 billion, predicted that GDP growth would slow from Trump's policies by anywhere from 1.5% to 2.5% in the latter half of 2025. However, he said that it likely wouldn't be a "disaster" that the U.S. economy would be unable to bounce back from in the future.

"When that money has been coursing through the economy over many years, and now, potentially it will be reduced or stopped in many ways, has got to be negative for the economy," Cohen said. "I think we’re seeing the regime shift a little bit. It may only last a year or so, but it’s definitely a period where I think the best gains have been had and wouldn’t surprise me to see a significant correction." Cohen's remarks come on the same day that the S&P 500 saw all post-inauguration gains wiped out, according to the New York Times.

Read more: https://www.rawstory.com/steve-cohen/

[Irish_Dem]

1. Oh no, the billionaires might get hurt by Trump's policies.

Doesn't matter if Trump hurts regular Americans.
But we can't let Trump hurt the billionaires.

[dem4decades]

2. I think Cohen was talking about the economy in general, and while Trump may not listen to you and me,

he may listen to those like Cohen.

[Irish_Dem]

8. Cohen only cares about how it impacts his money.

[dem4decades]

11. So am I.

[Irish_Dem]

12. Yes but he has plenty of money to spare.

He can lose most of his wealth and live comfortably.

He has a voice which may be heard.

[BumRushDaShow]

3. It may be the only way to blunt some of the mess

because much of how things are right now, was based on what the multi-generational billionaires "wanted"/"tolerated". The "nouveau" ones like Muskrat and 45 are upsetting that "balance" and are too stupid to realize it.

[Irish_Dem]

9. I agree old money may have to step in.

And point out throwing some money to the peasants prevents them from getting the guillotines out.

[Linda ladeewolf]

16. Old money is now fearing for their money and possibly their other things.

[Irish_Dem]

20. Yes exactly.

The tech billionaires are taking a wrecking ball to
Everything.

[bucolic_frolic]

4. The monied clowns have no idea how tight the masses can squeeze a nickel

but they will find out. Innovation is brewing in households all across America. The will of the people triumphs in the long run.

[BumRushDaShow]

7. Don't even have to "innovate"

Just resurrecting and using some of the old tried and true habits/practices/products, can suffice... There are still many around with an institutional knowledge of the Depression.

[mdbl]

17. Speaking of depression...

I have been brushing up on things I learned in history class like how to make stone soup and eggless cakes.

[BumRushDaShow]

18. A lot of the news sites

have their "Lifestyle" sections that bubble those recipes up every once in awhile. Of course the millions of cooking sites have them. E.g., - this "Depression Cake" (I always see that featured) - https://www.simplyrecipes.com/chocolate-depression-cake-recipe-8549922

[Tarzanrock]

5. Nothing is more terrifying to some greedy covetous rich fuck ...

... than the shocking possibility of losing even a few pennies.

[Bernardo de La Paz]

6. Is tRump more stubborn now than in 1.0, feeling more like a king, less willing to be contradicted?

Cohen talks about slow economy in latter half of 2025, leading to a shift in policy some time during that period.

I think any shift might come April 1 or long into 2026, not late 2025. But I don't really know.

tRump has given himself an off-ramp on April 1 because he has a report due then which will analyze tariffs on the US, with the nonsensical inclusion of VAT. He could "decide" to impose tariffs more selectively and in reduced quantities and to fewer countries then.

Or not. He seems fascinated by tariffs as a revenue generator, so I don't think he will hold back. And when they start to bite, he will say it is just a quick thing to get through, just like he thought he could jawbone Covid to the ground in 2020. So I think he is likely to impose a bunch of tariffs April 2 and keep them on for a year or more.

[ck4829]

10. Too late, the billionaire class has tied themselves to Trump. They can go down with him.

[LaMouffette]

13. Like Rachel Maddow, I believe that for the Evil Axis of Putin, Musk, and Rump, this moment is their moonshot. They WANT

the economy in the US and everything else in the US to be destroyed so that they can usher in a New World Order of a global oligarchy led by the most-corrupt billionaires the world has ever seen.

So, no, I don't expect President Musk and Vice President Rump to do a "regime shift." They will continue destroying our country apace.

[IthinkThereforeIAM]

14. Nice tidbit of info there, but the advantage have and are already being realized...

... "betting" on the markets with put shares, buying in that shares of companies will tank/drop. Just like they and "someone" did with airlines shares just a day or two before 9-11, after which American and United airline stocks dropped and "someone" had put in large "put option".

For those of us, including I, who are not familiar with the tactic:

A put option is a contract that gives the buyer the right to sell a specific number of shares at a set price by a specific date. Put options are used to profit from a stock's decline or to protect a portfolio.
How put options work
The buyer pays the seller a premium for the option.
The value of the put increases as the stock price decreases.
The buyer can exercise the option and sell the stock at the strike price.
The buyer can also choose not to exercise the option.
Who writes put options
The seller of a put option is obligated to buy the stock at the strike price if the buyer exercises the option.
Writing put options can be a source of revenue for the seller.
When to use put options
To profit from a stock's decline
To protect a portfolio against a stock's decline
To hedge investments that you already own
Related options
Put options are different from call options, which give investors the option to buy an underlying asset at a pre-agreed value

Generative AI is experimental. For financial advice, consult a professional.

[DBoon]

15. One thing that has kept Vicktor Orban in power

He has made sure to keep the Hungarian wealthy class satisfied. He knows this is the one group that could doom his regime.

Trump is not so smart.

[PortTack]

21. No..trump isn't very smart! In fact I saw one pundit from the BBC say he isn't smart enough to be a fascist

[AntiFascist]

19. This is one thing that can hurt Trump. He actually sucks at running a business, much less the US economy. n/t

[GP6971]

22. Locking per Host Consensus

Opinion of one rich person.