Stock markets are down again.

 

If Trump gives in, he's done.

There was a documentary on Tubi yesterday that illustrates the problem. In the last few economic cycles, the politicians have gotten too concerned about the stock market's gyrations. This had an effect upon the Fed governors, who did not properly regulate the banking system. A lot of moral hazard got into the system. It's not up to the Fed to worry about the stock market. It is not up to the President to regulate the markets, either. They're supposed to regulate themselves.

When they won't be responsible themselves, the politicians want to rescue them. That's what they're counting on. They expect it now, and so they behave badly. Once their bad behavior causes failures, and filters down the whole chain ( or dominoes ), then a lot of pain just might get transmitted. This is what happens when you take too much risk. This is what happens when the government and the Fed takes too much responsibility for people's behavior. If somebody makes bad decisions, that's something that they'll have to accept themselves.

So now the markets are testing Trump to see how much they can wrap him around their little finger. Trump should not give in to them. China is a DANGEROUS ADVERSARY. They must be held accountable for their violations of agreements. China doesn't play nice, and to do business with them is a hazard that you must accept if you're going to. If you get burned, then that's your problem. It's not fair to expect everybody else to subsidize your own mistakes.