It’s kind of silly to say markets do not like uncertainty. Markets deal with new news all the time. Who thought Nvidia was going to surge last year and then precipitously drop in January? As a market participant, you can take advantage of such speculation. Bloomberg reports this activity in a newsletter today.
People don’t want to think of aid grants as having a market, but they do. They involve needs, donors and are constrained by resources. By abruptly closing down USAID, a repricing in the market for assistance will follow. Some of the needs will rise to the level of attracting a backer. But how?
Voice is used on this side of the market to advertise demand. Here’s an interesting comment from X.
People who need help are not always in a position to voice that need loud enough to be heard. But I think Mike Benz has a point. Why isn’t the international community, or doctors and health professionals commenting on the lack of funding?
So what next? Most probably some of the projects will continue under the management of the State Department. In the meantime, a market process sifts through the various priorities of market participants. Some needs abroad may be taken over by other philanthropies. Some local organizations might have to downsize.
What’s important, is the ones that are no longer deemed worthy of funding will no longer find a match.
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