Understanding the bear market
This video explains in simple terms what is driving markets. An imploding credit bubble and trade tariffs drove Wall Street down in 1929—32. This time is even more scary.
This video with Andy Schectman was recorded before President Trump announced his tariffs last week, guiding the viewer to an understanding in clear terms why the combination of the credit bubble beginning to implode and Trump’s tariff policies will destroy financial values.
Last week, we saw this destruction begin in earnest in US and global equity markets. But given the 1929 precedent that is only the beginning. US, European, Japanese, and UK economies almost certainly will enter a slump which could rival that of the 1930s.
Inevitably, it leads to a very severe bear market, bankruptcies, the threat of bank failures, and in the absence of a gold standard higher interest rates to reflect all these risks to the dollar and other fiat currencies.
I love Alastair’s answers. He puts brains (intelligence) behind my reasoning. He’s a delight to listen to.
This interview would have been better if the young man who aired it would not repeat the same thing that Alasdair and Andy are saying.