Wall Street is experiencing heightened anxiety, and Jim Cramer has exacerbated the situation. The CNBC host brought attention to the infamous Black Monday of 1987, linking the current volatility to Trump’s “Liberation Day” tariffs. Cramer cautioned that the markets may falter in unprecedented ways unless there is a significant change.
Regardless of what one thinks about Cramer’s history, it’s worth noting that a broken clock is right twice a day.
Is There Any Correlation to Black Monday?
Although Black Monday occurred in the 1980s, experts often reference the Smoot-Hawley Act of 1930 as a significant historical precedent.
That infamous Black Thursday began with a devastating blow, as stocks plunged 11% before continuing their downward trajectory in the ensuing days. Traders struggled to salvage what they could, grieving over a market that lost 25% of its value in just 48 hours. This event led to one of the most challenging economic times in history, culminating in a global depression.
The Smoot-Hawley Act of 1930 added to the crisis by increasing tariffs during a time when nations were already in dire straits.
The events of Black Monday, which happened 50 years after the Great Depression, exhibit striking similarities to our current situation.
The 1987 crash dealt a severe blow, with the Dow shedding 22.6% in a single day—the sharpest decline in U.S. history. Trump’s Liberation Day, which implemented a comprehensive 10% import tariff alongside targeted penalties as high as 54% on major trading partners like China and India, is already rattling the markets. By the end of the week, the losses were unmistakable:
- The S&P 500 fell by 6%, marking its steepest drop since March 2020.
- The Dow saw a decline of over 5%, reflecting increasing fears among investors.
- Global markets, including Asia’s Nikkei and Europe’s DAX, reported significant falls, indicating widespread concern.
Experts like Cramer worry that this could signal the onset of a larger market event unless corrective actions are implemented promptly.
We’ve Been in a Recession; The Biden Admin Changed the Definition
The argument is clear: figures like Jim Cramer are mistaken. We have experienced a recession, and regardless of who becomes the next president, we are heading towards another. The gaslighting is amusing.
Under Biden, GDP dropped for two consecutive quarters in ‘22, which is typically recognized as a recession. However, the White House & NBER avoided classifying it. Also, take a look at this: pic.twitter.com/Z0SjbrAzbU
— David Nage🎯 (@DavidNage) April 4, 2025
In 2022, the Biden administration altered the definition of recession. For decades, two consecutive quarters of decreasing GDP were the standard measure for economic downturns—clear, straightforward, and harsh.
To sidestep negative press, they revised the criteria, suggesting that GDP alone does not suffice to declare a recession, adding factors such as labor markets, consumer spending, and corporate investment into the equation.
Okay, Let’s Assume a Black Monday Event Happens: What Should We Buy?
Canned beans, a firearm, and ammunition? Jokes aside, this presents a clear opportunity to invest in more Bitcoin and leading layer-one alternatives like Sui, Solana, and Polkadot.
Cramer’s predictions about a “Black Monday 2.0” are speculative, but the warning signals are present. What should give you pause is that the most vocal opponents of tariffs are also often wrong about many other matters. Additionally, much of this situation has already been factored into the market.
EXPLORE: XRP Price Sees 11% Increase After SEC Crypto Unit Hints at XRP ETF Progress
Stay Updated: Join The 99Bitcoins News Discord for the Latest Market Developments
Key Takeaways
- Wall Street is on edge, and Jim Cramer has ignited concerns by calling for Black Monday 2.0.
- Despite opinions about Cramer’s past, even a broken clock can be correct twice a day.
- Black Monday, which occurred 50 years post-Depression, shows patterns remarkably similar to the present day.
