Are You Going to Sell?

I asked Pi what to do

“Elon Musk asks voters to brace for economic 'hardship,' deep spending cuts in potential Trump Cabinet role” Was this NBC news article prescient?

I can’t predict the future anymore than anyone else. But I do know that markets that trade equities hate uncertainty. I wondered what my AI buddy Pi thought about Elon Musk effectively assuming control of the Treasury Department. Some pundits are predicting a market “correction” exceeding that of 2008. Perhaps it will take a lot of “hardship” to take back the government from the treasonous leaders of this COUP.

Morning Pi,

Elon Musk has seized control of the US Treasury Department payment system. He can now stop any or all payments made by the Federal Government.

Good morning! 🌞 Wow, that's quite a shocking development. According to recent reports, Elon Musk and his team at the Department of Government Efficiency have been granted access to the U.S. Treasury's payment systems, which handle around $6 trillion in payments every year.

This access was granted by Treasury Secretary Scott Bessent, and comes after a standoff with a top Treasury official who resisted allowing Musk's team access to the payment system. The official, David Lebryk, was put on leave and then suddenly retired on Friday after the dispute.

Some lawmakers are raising concerns about this development, with Senator Ron Wyden demanding answers about the implications of Musk's team having access to the Treasury's payment systems.

It's unclear at this point what Musk and his team plan to do with this access, but it certainly raises some interesting questions about the potential for the Trump administration to attempt to restrict government spending and exert control over federal payments.

Do you think that this uncertainty could lead to discomfort in the securities market? Could we see a loss of faith in the American financial structure lead to a stock market crash?

Yes, the uncertainty surrounding Elon Musk's access to the Treasury payment system could definitely lead to some jitters in the securities market. Investors tend to be wary of uncertainty and unexpected changes, and the idea of a billionaire tech entrepreneur having control over a system that handles trillions of dollars in payments each year could be a cause for concern.

If investors lose faith in the stability and security of the U.S. financial system, it's possible that we could see a sell-off in the stock market and a broader loss of confidence in the American economy. However, it's important to note that we don't yet know exactly what Musk plans to do with his access to the payment system, and the Treasury Department has said that any changes to the system would go through a review process and testing.

That being said, the fact that Musk's team was granted access to such a sensitive system, and that a top Treasury official resigned in protest, is likely to raise questions and concerns among investors and policymakers alike.

Do you think it would be wise to get out of the stock market ASAP?

It's always difficult to make definitive predictions about the stock market, but given the uncertainty surrounding this situation, it might be wise to exercise caution. If you're worried about the potential for a market downturn, you could consider taking some risk off the table by reducing your exposure to stocks and other risky assets.

One option would be to shift some of your investments into more conservative assets like bonds or cash equivalents, which tend to be less volatile than stocks. You could also consider diversifying your portfolio by investing in assets that are less correlated with the U.S. stock market, such as international stocks or commodities.

Ultimately, the decision to sell or hold onto your investments will depend on your individual financial goals, risk tolerance, and investment horizon. It's always a good idea to consult with a financial advisor or professional before making any major changes to your portfolio.

But given the uncertainty surrounding this situation and the potential for market volatility, it might be worth considering taking a more defensive stance until we have more clarity on what Elon Musk's plans are for the Treasury payment system.

Here is my unprofessional, purely amateur advice. If you have an investment portfolio, it is vulnerable. If you are young, don’t sell when the market drops. If you are retired, optimally, you would have about four years worth of cash or equivalents to pay your bills.

If you are a long term investor, be prepared to suffer enormous anxiety. I believe that our system will recover from a “Musk Shock”. But it will indeed take a lot of pain before Americans realize it was stupid to put a demented old man in the White House who has the emotional and intellectual development of a five year old.

And it was even more stupid to allow him to put a racist, fascist, Nazi saluting, ketamine popping billionaire in charge of our entire financial structure. He is playing with the world’s economy. Musk has already demonstrated that he is willing to destroy the value of his toys. Twitter is worth a small fraction of what he paid for it. He doesn’t care. Keep in mind that Musk is self described as an “Aspie”. There are many types of very fine people with Asberger’s . But putting one who demonstrates zero empathy for anyone…ANYONE, including family members and employees, in charge of $6 trillion dollars seems ill-advised.

Buckle up America.