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News Link • Economy - Economics USA

Blain: "It All Feels Very 2008/2009"

•, by Bill Blain

"We're going to need a bigger boat."

Chaos? The Real New Normal

Yesterday was… interesting!

When they write the history of this crash at least there will not be any doubt about who to pin the blame on!  Trade war. Great idea.

Stocks take a spanking!  Bond yields tumble!  High yield bonds offered only!  China stops buying US agriproducts. Renminbi breaks 7. Trump calls China a "Currency Manipulator"!  China responds with a FROAD!  The global bull market stops.  Suddenly.  Crash, bang, wallop…

So much for Fed Juicing the markets and pandering to Trump by stopping Quantitative Tightening with last week's minor rate ease.  Utterly pointless.  Global Markets now pay the consequences. Market is focused on the real stuff again – the implications on growth of a serious trade war between the US and China.  Currency moves are at the forefront – China lets Rmb slip and then shows it can restrain it.  This is way past a simple business cycle move – this is about fundamentals.  China is serious and is not going to cave.  What just moved the markets was real stuff – and you don't need to be a genius to figure out Trump's Trade War is not great news.

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Attorney For Freedom