Why is the “black Monday” trendy on X? The expert warns that Trump prices could trigger a “bloodbath” on the world market since 1987

Speaking during his MAD Money program on CNBC on April 2, Cramer warned that the markets could experience a carnage similar to what happened in 1987, when the Dow Jones experienced its biggest decrease of a day to date, during the organization of its Mad Money program on CNBC on Saturday.

The veteran market commentator said that the situation will get worse if Trump did not “reach out to the countries that have not placed reprisal rates and give them incentives to comply.

“If the president does not try to reach out and reward these countries and the companies that respect the rules, then the scenario of 1987 … The one where we fell three days, then down 22% on Monday, has the most power,” he said. “We will not have to wait too long to find out. We will know it by Monday.” He commented on days before the market movement of April 7.

US market indices see the decline after the Trump rate

US market clues dropped Thursday and Friday after Trump said a 10% “base” rate on imports from all countries. The S&P 500 ended the week in red, lowering 6% in response to the taxation of counter-trials by China in the United States. It was the most negative weekly performance since the Pandemic of COVID-19 2020.

The Dow Jones and the Nasdaq, two other American indices, fell 5.5% and 5.8% respectively. Friday, Dow Jones fell by 2,231 points after losing 1,679 points on Thursday. It was the worst decrease of two days since March 2020.

Carnage was not limited to American markets; It was also obvious in Europe, Asia and even in India.

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Jim Cramer weighs on the American recession

However, Cramer said the United States is avoiding a recession due to robust work figures. “This makes it less likely that an accident will necessarily lead to a recession,” he said.

“I will contain my anger, but only because I lived 1987 and in the end, I came out well. I was in cash for the accident. I know what it looks like, “he continued.

From Dot-Com Boom in 2000 to global recession in 2007, Cramer has already made a number of predictions at major moments in the world economy.

However, his forecasts have failed in the past. Cramer was criticized during the 2007-2008 financial crisis for suggesting that people invest in Bear Stearns, Merrill Lynch, Morgan Stanley, Wachovia and Lehman Brothers before their accidents and closings.

Earlier, Cramer warned of a possible collapse of the stock market market shortly after Trump announced a basic right of 10% on all imports in addition to the more difficult samples specific to the country, such as 26% on India and 34% on China. By taking to X, he wrote: “It is difficult to build a new, weaker world order on the fly. Trying frantically to do so but do not yet see anything that still removes the scenario of October 87.

In another article, he even recalled the 1987 black Monday experience: “Look, I don’t want a rehearsal of 1987 of course. But I exchanged myself during this period and I remember every day. We knew we knew .. and we are proud to have done it. But we felt like idiots because the week before the crash so bad and we were late to sell. ”

What we know from 1987 Black Monday Bourse Crash

The prediction of the “black Monday” of Cramer has become viral on social networks, people expressing concerns and their opinion around his prediction. As Black Monday is also trendy on X, it is impossible to avoid going back in time and revisiting the unexpected collapse of the stock market in October 1987. When the world historical financial crisis broke out on October 19, 1987, the Dow Jones Industrial Average (DJIA), a share index calculated by Dow Jones & Co., fell from 22.6% in a single negotiation session. Federalhistoryreve.org describes it as “a loss that remains the greatest drop in the stock market for a day in history”.

The disastrous decrease in percentage for a day of the stock market has created a domino effect which caused the pursuit of the catastrophe on a global scale. The disaster began in Hong Kong and went to Asia and Europe before arriving in the United States, according to Corporate Finance Institute.