With the Federal Government Shutdown reaching day 32, its impact varies widely. The affects on Federal Government employees, by far being the greatest. This Mexican Stand-off rests in the hands of Donald J Trump (R) who said at the onset “I will own this government shutdown,” and its clear from polling the American public agrees with him.
As the two sides position like a high stakes’ poker game, the observers (government employees) are forced to watch and this is how Trump wants it, because all eyes are on him, the tough negotiator. Problem is many see him as holding a pair of ducks (duces) with very few options.
We believe this situation opens up insight into a growing public perception. Its not just that he is unhinged, but rather he makes bold moves with broad implications without having the wherewithal to give any thought to the implications of his actions, other than I did it, and watch me do my next trick.
This high-risk strategy may pay-off with high rewards, but if his negotiations with North Korea, tariff strategy with China, posturing with the European Union and now the stare down over his cards with House Speaker Nancy Pelowsi (D-CA12, San Francisco) or any other big move go south there are serious repercussions in response.
In investment, a high-risk may result in a high reward or a substantial loss. The diminishment of risk may mean a lesser return but a greater likelihood of success. If one looks to the tax cut passed by Trump and the Republicans in 2018 it is exactly what happened.
As we said at the top Trump=High-Risk/High Reward for Some.