Bulwark Takes: The Market Gained (Then Lost) $4 Trillion on a Fake Social Media Post!

Release Date: April 7, 2025

In this riveting episode of Bulwark Takes, hosts Sam Stein and Will Sommer delve into a dramatic incident where a fabricated social media post caused a seismic shift in the financial markets, temporarily inflating market value by $4 trillion before correcting itself. This detailed summary captures the essence of their discussion, highlighting key moments, insights, and the broader implications of misinformation in today's volatile financial landscape.

1. Introduction: A Market Roller Coaster

The episode opens with Sam Stein and Will Sommer setting the stage for a tumultuous day in the financial markets. At 00:00, Sam introduces the topic, highlighting the rapid fluctuation of the market's value within a mere ten minutes due to an erroneous social media report.

Sam Stein [00:00]: "Over the past 10 minutes, the market gained and lost something equivalent of $4 trillion in value based on an erroneous social media report."

2. The Catalyst: Walter Bloomberg's Erroneous Tweet

Will Sommer explains the origins of the fake post, attributing it to an individual named Walter Bloomberg, who is known for amplifying Bloomberg headlines but occasionally errs catastrophically.

Will Sommer [00:39]: "Walter Bloomberg apparently is just a guy who rips Bloomberg headlines for the most part and sometimes he gets it catastrophically wrong."

At 02:14, Sommer details the critical tweet that sparked the market frenzy. Walter Bloomberg erroneously reported that Kevin Hassett, Chair of the National Economic Council, announced a 90-day pause on tariffs for all countries except China. This misinformation led to an immediate surge in the market.

Will Sommer [02:14]: "Walter Bloomberg tweets that Kevin Hassett... said that there would be a 90-day pause on tariffs for all companies besides China."

3. Immediate Market Reaction

Sam Stein describes the initial market turmoil, noting that the market plunged by 4.5% before the false announcement caused a sharp rebound.

Sam Stein [02:56]: "It had ledgers, context here. It had gone down at the start, 4.5%. ... and then suddenly we look up and it's green. It's up like 450 points."

This dramatic swing underscores the fragile nature of market sentiments, heavily influenced by real-time information and, in this case, misinformation.

4. Unraveling the Misinformation

As the episode progresses, the hosts explore how quickly the truth emerged. By 03:36, doubts about Walter Bloomberg's credibility surfaced, revealing that Hassett's actual remarks were misinterpreted during a brief moment in a Fox interview.

Will Sommer [03:57]: "That brief moment where he says yep, that's what Walter Bloomberg appears to have jumped on."

Sam emphasizes the absurdity of $4 trillion being influenced by a fleeting comment, highlighting the volatility introduced by social media.

Sam Stein [04:19]: "$4 trillion in market value moved on that. And it was a two-hour interview."

5. White House Intervention and Market Correction

By 05:34, the White House steps in to debunk the false report, labeling it as fake news. This prompt clarification caused the market to dip once again, illustrating the rapid tug-of-war between misinformation and official statements.

Sam Stein [05:44]: "The White House account says in response to a breaking news post about Trump considering that day tariff pause. Wrong fake news."

6. The Role of Influencers and Media Missteps

The discussion shifts to the role of influencers like Benny Johnson, whose delayed reactions further complicated the situation. At 06:02, Sam notes Johnson's incorrect tweet aligning with the misreported news, exacerbating the $4 trillion fluctuation.

Sam Stein [06:02]: "Benny... just tweeted, breaking: The S&P 500 gains $4 trillion following EU announcement of interest in zero for zero tariffs with the United States."

Will points out the irony of Johnson's previous dismissal of market concerns, only to chase gains once misinformation takes hold.

Will Sommer [06:51]: "The irony here, of course, is that last week when the market was plunging, Benny was saying, you have money. You don't even need money anymore."

7. Tariffs, Political Panic, and Market Stability

Sam and Will delve into the political underpinnings of the situation. Trump refers to the sudden market shifts as "panic," reflecting the broader Republican anxiety over economic stability.

Sam Stein [07:25]: "What did Trump call it this morning? Panic."

Will contemplates the sustainability of such panic-induced market movements.

Will Sommer [07:34]: "The combination of Republicans and panic. What do we think? Does this one have staying power?"

8. Bill Ackman's Involvement and Market Manipulation

A significant portion of the discussion focuses on Bill Ackman, a prominent financier whose actions added another layer of complexity. Ackman's fluctuating stance on tariffs and his subsequent Twitter outbursts are dissected.

Sam Stein [07:37]: "Bill is a big finance guy, a conspiracist of the worst variety and he loves Trump but seems to be souring on him."

Will explains Ackman's erratic tweets, blaming Commerce Secretary Howard Lutnick for market manipulation, only to retract his comments shortly after.

Will Sommer [08:18]: "He started saying, you know, Howard Lutnick... has some bond investments. And then he said this morning, oh, you know, never mind."

9. The Aftermath: Reflecting on Market Realities

As the episode wraps up, Sam reflects on the precariousness of modern financial systems, where misinformation can sway trillions in value within minutes.

Sam Stein [09:00]: "We don't know what's coming on social media. We live in reality where these posts can move markets in ways that are unreal, frankly."

He underscores the need for caution and awareness in navigating financial information, especially in real-time scenarios influenced by social media.

10. Conclusion: Lessons Learned

The hosts conclude by emphasizing the importance of verifying information before making financial decisions. The incident serves as a stark reminder of the pervasive influence of social media on global markets and the critical need for reliable information sources.

Sam Stein [09:38]: "As we finish up this video, the Dow is down. After shooting up and getting our hopes up. Now down again after the White House says no pause doesn't mean it can't go back up."

Will Sommer [09:40]: "Thanks for having me."

Key Takeaways

• Misinformation's Impact: A single erroneous social media post can cause unprecedented market volatility, affecting trillions in value within minutes.

• Role of Influencers: Figures like Walter Bloomberg and Benny Johnson, despite their limited credibility, can influence market sentiments significantly.

• Political and Financial Interplay: Politicians and major financial players like Bill Ackman play pivotal roles in shaping market dynamics, sometimes leading to increased instability.

• Need for Verification: The episode underscores the necessity for investors and the public to critically assess information sources to mitigate the risks of misinformation.

Notable Quotes

• Sam Stein [00:00]: "Over the past 10 minutes, the market gained and lost something equivalent of $4 trillion in value based on an erroneous social media report."

• Will Sommer [00:39]: "Walter Bloomberg apparently is just a guy who rips Bloomberg headlines for the most part and sometimes he gets it catastrophically wrong."

• Sam Stein [02:56]: "It had ledgers, context here. It had gone down at the start, 4.5%. ... and then suddenly we look up and it's green. It's up like 450 points."

• Will Sommer [02:14]: "Walter Bloomberg tweets that Kevin Hassett... said that there would be a 90-day pause on tariffs for all companies besides China."

• Sam Stein [07:25]: "What did Trump call it this morning? Panic."

• Will Sommer [06:51]: "The irony here, of course, is that last week when the market was plunging, Benny was saying, you have money. You don't even need money anymore."

• Sam Stein [09:00]: "We don't know what's coming on social media. We live in reality where these posts can move markets in ways that are unreal, frankly."

This episode of Bulwark Takes serves as a compelling exploration of the intricate and often fragile relationship between social media, political rhetoric, and financial markets. It highlights the urgent need for vigilance against misinformation and the profound effects it can have on global economies.