Well, now what?
The World was shocked at the US's sweeping Muslim ban with another round of anti-Trump protests at home and abroad and the Global Markets are tumbling and the Volatility Index (VIX) is rising as even Green-Card Holders were banned from returning to the US on a sudden executive order that stranded thousands of legal immigrants overseas this weekend.
I'd love to not talk about politics but politics is driving the markets at the moment so responsible analysts NEED to discuss politics or they are doing you a tremendous disservices. I'm not going to get into the bank and forth of the thing – that's all over the papers but we also declared a trade war with Mexico and China is now saying:
"'A war within the president's term', 'war breaking out tonight' are not just slogans, but the reality."
The commentary was first reported by South China Morning Post on Friday, and comes amid concerns about a trade war between the world's two largest economies. "The Chinese government is quite concerned about the potential for direct confrontation with the Trump administration," said Ian Bremmer of the Eurasia Group. "Chinese officials are preparing for the worst, and they expect to retaliate decisively in response to any U.S. policies they perceive as against their interests."
So happy Monday to you on Day 7 of the Trump Error. Over in Europe, Germany is now worried about too much inflation and is calling for the ECB to start tightening monetary policy but poor Italy is still having bank troubles (and Europe is down 1% this morning with Italy down 2%) and Greece and Puerto Rico are both heading into debt crises (again).
Peurto Rico got an extension but the IMF just said Greece's debt, at 275% of their GDP is "explosive and highly unsustatinable". Explosive and unsustainable is what they say about collasping stars - not economies inside the solar system! And if the IMF says this about Greece, then why are Japan and China still getting a pass – both of whom have over 250% debt to GDP (assuming you can even believe China's GDP number).