No wonder SNL’s ‘MAGDA’ slogan is in trend and taking over social media now!
What’s MAGDA, you ask?
It’s ‘Make America a Great Depression Again’!
Until now, thanks to peak consumerism – we were well-versed with Black Friday; Black Friday being the Friday following Thanksgiving in the United States, traditionally marking the start of the holiday shopping season with retailers offering significant discounts and sales to attract customers.
While the term ‘Black Friday’ originated in the 1950s in Philadelphia, initially used by police to describe the chaotic crowds and traffic flooding the city after Thanksgiving, nowadays it’s become a major shopping event where retailers offer substantial discounts and promotions, often opening stores early, sometimes even on Thanksgiving night, to kick off the holiday shopping rush. The sales usually continue into the following Monday, known as Cyber Monday, which focuses on online shopping deals.
But thanks to Trump’s Tariffs, a Black Monday might be visible this week.
What happened?
CNBC host and market commentator Jim Cramer recently took to social media to issue a warning that America is in store for another ‘Black Monday’ market crash similar to the record 1987 collapse if President Trump doesn’t curtail his tariff plan.
US President Donald Trump’s reciprocal tariff has left the whole world in economic stress, and it may bring the economic depression times of ‘Black Monday’ in just weeks, as per the CNBC host. Hinting at the 1987-like scenario, Cramer said if President Trump does not reward countries, then the “1987 scenario…the one where we went down three days and then down 22% on Monday”.
Cramer said on his show Saturday, referencing the worst single-day fall in the history of the Dow, “If the president doesn’t try to reach out and reward these countries and companies that play by the rules, then the 1987 scenario…the one where we went down three days and then down 22% on Monday, has the most cogency.” Cramer added, “We will not have to wait too long to know. We will know it by Monday.”
Cramer — who noted that the 1987 crash saw the Dow Jones Industrial Average fall by 22.6% in a single day — said the bloodbath could be repeated after the brutal two-day sell-off following the announcement of Trump’s sweeping tariffs against nearly 90 countries.
The clipping is currently going viral on social media.
He also said, “It’s tough to build a new, weaker, world order on the fly. Frantically trying to do it but don’t see anything yet that takes the October 87 scenario off the table yet. Those who bottom-fished are sleeping with the fishes …so far,” adding, “Our only real hope is that the president comes up with something that can turn this bear into a bull.”
The aftermath of tariffs:
The president shocked the global economy on Wednesday when he announced a 10% blanket tariff on all imports to the US, with higher levies set to take effect on April 9 against major exporters like China, the European Union, Japan and Vietnam.
China announced retaliatory tariffs as a result of Trump’s order.
In the two days following the “Liberation Day” announcement, the Dow plunged by 3,910 points, making it the worst two-day loss since the pandemic.
The S&P 500 also tumbled by nearly 6%, with the tech-heavy Nasdaq seeing a similar drop.
Total market losses wiped $6.6 trillion off the value of US markets.
When asked about the plummet, President Trump said in his usual nonchalant tone, “Sometimes we have to take the medicine.”
Even one of his closest allies, Elon Musk, the Tesla CEO and DOGE leader, lost $11 billion on Thursday, as his car company’s shares fell 5.5% following Trump tariff announcements, along with Jeff Bezos and Mark Zuckerberg being among the billionaires who took the hit of Trump’s Tariffs.
However, Trump dismissed the market crash as a ‘great time to get rich’. In a Truth Social post, he wrote: “To the many investors coming into the United States and investing massive amounts of money, my policies will never change. This is a great time to get rich, richer than ever before!!!” adding, “Big business is not worried about the Tariffs, because they know they are here to stay, but they are focused on the BIG, BEAUTIFUL DEAL, which will SUPERCHARGE our Economy. Very important. Going on right now!!!”
What is Black Monday?
Black Monday was a global, severe, and largely unexpected stock market crash on Monday, October 19, 1987. Worldwide losses were estimated at US$1.71 trillion. The severity of the crash sparked fears of extended economic instability or even a reprise of the Great Depression.
The ‘Black Monday’ saw the Dow Jones Industrial Average (DJIA) plummet by 22.6% in just one day. This event triggered a global stock market downturn, cementing Black Monday as one of the most infamous days in financial history. The S&P 500 experienced an even steeper decline, falling by 30% on the same day.
The mayhem continued throughout the month, and by early November 1987, most major stock market indexes had lost over 20% of their value.
