Lobbying, outbursts, humility, Wall Street is "helpless" against tariffs, two big bombs are about to explode?

Trump's "stubbornness" has severely impacted global markets, leaving Wall Street tycoons at a loss, with two major financial risks surfacing. On April 8, a report by The New York Times detailed the transition of Wall Street billionaires from intensive lobbying and public criticism to being forced to accept Trump's tariff policies. The report stated that Wall Street tycoons found themselves locked out of the power circle, helplessly watching the tariff policies they feared would jeopardize the economy being implemented. Wall Street has now come to terms with reality, shifting its focus from changing the president's stance to how to protect their own businesses from the impact of the tariff policies. The article pointed out that the current market turmoil has brought U.S. stocks close to bear market territory, with two major financial risks emerging: investment-grade loan impairments and potential crises in the private loan market. Lobbying Failure: Wall Street Tycoons' Pressure Campaign Fails In Washington, a rare collective action by financial elites is unfolding, but it has ended in failure. According to The New York Times, the day after Trump announced a new round of massive tariffs, JPMorgan CEO Jamie Dimon and other banking giants held closed-door talks with Commerce Secretary Howard Lutnick. Despite Wall Street executives arguing their case, Lutnick remained firm, refusing to change the policy direction. The lobbying efforts then escalated further. The aforementioned report cited insiders revealing that last weekend, major donors to Trump's campaign directly called White House Chief of Staff Susie Wiles and Treasury Secretary Scott Bessent, but the results were equally fruitless. Rare Public Opposition After private lobbying failed, hedge fund billionaires who once supported Trump began to express their dissatisfaction publicly. Hedge fund mogul Bill Ackman stated on social media platform X on Monday: "The global economy is suffering due to a miscalculation. The president's advisors must acknowledge their mistakes and adjust direction by April 9 to avoid a major blunder by the president." Billionaire oil trader Andrew Hall praised Ackman on social media, agreeing: "At least Ackman has the courage to change his stance and publicly criticize this foolish decision. Where are the other 'financial tycoons'? Why are they silent?" Subsequently, more financial leaders began to join the protest. JPMorgan CEO Dimon warned in a letter to investors that tariffs would suppress consumer confidence and investment willingness, increasing the risk of economic recession. BlackRock Chairman Laurence D. Fink explicitly stated at a lunch meeting of the New York Economic Club: "The economy is shrinking before our eyes, and most CEOs I talk to believe we may already be in a recession." Fink specifically pointed out that ordinary consumers would directly feel the price increases caused by tariffs, from Barbie dolls to daily necessities. From Resistance to Forced Acceptance of Reality Wall Street's attitude is subtly shifting. A well-known executive acting as an intermediary between Wall Street and Trump officials stated that he has begun telling colleagues and competitors to stop trying to persuade Trump to delay tariffs, but rather to request reductions in individual tariffs on industries that are nearly impossible to quickly replace imported goods The New York Times reported that three days after meeting with Lutnick, the bank CEOs were on the phone again, and the focus of the discussion was no longer on how to change the president's stance, but rather on how to protect their own businesses from the impact of tariff policies. On Tuesday morning, even the most vocal critic, Ackman, noticeably softened his stance. In a new post, he expressed support for the general direction of Trump's tariffs, but argued that "not allowing time to reach an agreement would cause unnecessary harm." Two Major Financial Risks Emerge As the market declines at the fastest pace since the early days of the pandemic, Wall Street institutions are beginning to assess potential risks. The U.S. banking sector will start releasing earnings reports this Friday, and investors will closely monitor the impact of tariff policies on the stability of the financial system, as well as any potential signals of declining loan quality. According to the report, a major investment bank is considering lowering the valuations of billions of dollars in investment-grade loans before releasing its quarterly report on Friday. These loans are typically viewed as relatively safe assets. This move suggests that financial institutions' concerns about corporate debt repayment capabilities are rising. Another concern comes from the private lending market. This market has rapidly expanded since the 2008 financial crisis, primarily providing financing to high-risk companies. Private lending institutions have always claimed that their systems are robust enough, but they have never faced a market contraction of the current scale