Is It 1929 All Over Again?
I have been following the stock market with wary anticipation of a major correction. The historical mid-term correction has yet to occur, and there are several indicators of general economic problems.
There is a great deal of debate about the genesis of the stock market crash of 1929. One theory says that the primary driver was the Smoot-Hawley Tariff Act. The link has a good overview and rationale, which seems completely plausible to me. So imagine my reaction when I read in USNews that Congress is planning on passing major tariffs on most Chinese products! Note to esteemed legislators: Who do you think is holding all of those Treasury bonds? And what do you think they will do with them if you start a trade war?
posted by Mike at 1:47 PM