Reply to Is there going to be panic selling?

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[quote=Anonymous][quote=Anonymous]I don't think you can characterize it as panic selling, but rather people adjusting to the reality of Trump/Musk wanting to do away three-quarters of the federal government jobs.  These jobs have hundreds of thousands of adjacent contractors and businesses.  If this occurs, the DMV will be like Detroit or any other city where the major employer dies off.

https://www.reuters.com/world/us/musk-speaks-jpmorgan-event-attended-by-ceo-dimon-source-says-2025-02-07/
Musk took the stage with his mother, Maye Musk, for a conversation moderated by David Rubenstein, co-founder of private equity firm the Carlyle Group (CG.O), opens new tab.
The conversation covered a wide range of topics, including the scope of work of the Department of Government Efficiency, spearheaded by Musk.
DOGE has goals of eliminating entire federal agencies and cutting three quarters of federal government jobs.

[/quote]

This is fair but I think belies the ultimate issue which if they make DC look like Detroit that's a much bigger issue nationally than the auto industry automating and moving global. So so so much funding for the rest of the country is dependent on federal spending. This isn't an isolated industry it's the basis of the national economy. If they succeed in cutting those jobs and the budget it's not a long fall for the rest of the economy that depends on this funding. Infrastructure, farming, healthcare to name a few all need these workers. Midwest farmers are already up in arms about USAID.

The RE market in DC will certainly be hit first but there won't be places to move because there won't be jobs anywhere. There is a reason capital cities are often less volatile than the rest of the country. If the capital city falls you can likely expect the rest of the country to follow suit.[/quote]

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