Economic Populism Takes Root - Today's Editors' Picks

Good morning! I'm your curator, Jason Kirsch

Here are today's Editors' Picks:

• Better understand Millennials (SA For FAs)
• Are emerging markets near a tipping point? (John M Mason)
• Argentina's economy will snap back to reality (Ian Bezek)
• Economic Populism takes root (SA For FAs)

Chart of the day: 30yr Treasury rate

Comment of the day, by contributor The Heisenberg

The question going forward is whether the pressure on the stock market will prompt Trump to rethink the tariffs, because without Cohn, it's likely that the only thing which could compel the President to reconsider is a sharp downturn in U.S equities. Consider the following from Bloomberg's Michael Regan, out on Tuesday evening immediately after the Cohn story hit:

S&P 500 futures have opened down about 1%. That suggests the market's knee-jerk interpretation of Gary Cohn's resignation is that neither he, nor anyone else, was able to convince Trump that unfocused tariffs on steel and aluminum imports are a bad idea. The follow-up headline saying the U.S. is considering broad curbs on Chinese imports and takeovers will add to concerns the apparent easing of trade tensions on Tuesday was a mirage. Investors now face a struggle to determine what the U.S. President is more interested in at the moment: U.S. stocks escaping their recent volatility spasms and returning to record highs, or leveling what Trump has long considered an uneven playing field for global trade. Cohn's resignation suggests the president's priorities may have shifted decisively from the former to the latter.

Sound like 1929? You betcha!

Quote of the day:

You know what makes your heart swift, you know what makes your breath catch your throat, you know what makes your chest tight with anticipation. Go get that! - Sanjay Gupta

Thanks for reading. Please share your 'Editor's Pick' with fellow investors by posting it in the comments.

Have a great day!

Jason

Comments

[thbrevik]

USA has to bring back the steel industry,simply for strategic reasons.I think balanced import tarifs will level the playing field after years of unfair trade deficits.China can rattle their sabers as much they want.They need the US market more than we their cheap crap.Go Trump!

[jimeditorial]

thbrevik

The US steel industry needs to modernize and compete, not hide behind tariffs. It's a robot world now,,,,low wages is a poor excuse.

[thbrevik]

I agree on that,but at competitive prices for comparable products.Some US industry may suffer,but we have to deal with the trade deficit,and a certain dose of protectionism makes perfect sense.America can produce almost everything it needs to be self sustained,but when it comes to steel and aluminum that is critical right now.We cannot and will not be dependent on hostile nations for products necessary for our own defence!Period!

[fishfryer]

Agree, some tariffs are needed especially in industries where labor, environmental and other regulatory costs are much lower in other countries. It's important we keep certain strategic industries healthy enough to modernize and also keep good paying jobs here to maintain our living standards and have those out of work steel workers pay some taxes.

[Erman]

A 50 yr note at 4.5% hmmmmmmm?

[Rinascimento]

Interesting times we are living now; too many people think keeping interesting rates low perpetually will solve everything,the same condition that got US in this mess; to solve anything bad debt has to be repudiated, big banks broken up, and some people go to jail; that's what happened during the S&L crises with real estate; THIS WAS NOT DONE 10 YEARS AGO!! people should be getting their equity back from their houses and the big banks pay for it; afterall the big banks have more assets now than before the crises they created and with the taxpayers' money of 0%.
Consumers should become financially wiser instead of spending money on gambling, drugs, excessive drinking, vacations, etc I read somewhere that about $1 Trillion is spent annually on things like this, can anybody imagine how much people's lives could be improved if X% of people spend of this $1 T to financially educate themselves?.

[lpcongas99]

So true. So true.. I really dont mean this in an arrogant way, but the level of entitlement I see from the under 30 crowd scares me.

Remember the George Carlin routine? Stuff, everybody has to much stuff, LOL............Man he was a genuis

[User 47843572]

The level of entitlement from all age groups is staggering.

[fujilomi]

The Treasury should issue as many 100 yr or infinity year Treasuries as it can while the demand is there and it still can lock in low rates. If it had to pay 18% on 21 trillion like a credit card the interest alone would be 3.78 trillion a year, big trouble. I was around in the Volker years, young guys may not think it is possible.

[lith]

They would make a great short.

[lpcongas99]

LOL. Is the EU doing that right now?

[Just Some Guy]

It's 100 year note at 0.0001% and the Fed buys them all by the simple expedient of printing more money. Easy-peasy. About $1t-2t per year.