Prof G Markets Wall Street Sinks on Greenland Risk
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Jan 21, 2026 
Justin Wolfers, a public policy and economics professor, discusses how Trump's Greenland threats impact U.S. markets and highlights the looming geopolitical risks tied to tariffs. He shares insights on how markets price low-probability disasters and the broader economic consequences of potential conflict. Rohan Goswami, a business reporter, explains Netflix's surprising stock drop despite strong earnings and delves into the competitive bidding war for Warner Bros. Discovery, revealing the strategic moves and challenges ahead for streaming giants.
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Markets React To Greenland Threats
- Markets plunged and gold hit record highs as investors priced risk from President Trump's Greenland threats.
- The VIX spiked and treasuries rose, signaling a real market reaction to geopolitical uncertainty.
Small Probability, Big Consequences
- Justin Wolfers argues the Greenland episode is more than rhetoric because it risks real trade wars and geopolitical breakdowns.
- He warns markets should weigh small probabilities of catastrophic outcomes, not just frequency of prior theatrics.
Tariffs Could Unravel Global Order
- Wolfers outlines that tariffs on European countries could trigger a U.S.-EU trade war and threaten NATO and the post-war order.
- He links trade escalation to potential military and economic catastrophe if institutional checks fail.
