A widely followed economist thinks that President Trump\u2019s trade war can trigger conditions that could catalyze a repeat of the 2008 stock market meltdown.<\/p>\n
Economist Alex Kr\u00fcger tells his 208,600 followers on the social media platform X that Trump\u2019s tariffs are creating conditions that could spark a new credit crisis when borrowers can\u2019t access credit easily despite their willingness to pay interest.<\/p>\n
Kr\u00fcger says<\/a> that once lenders lose the confidence to issue new debt due to an uncertain macroeconomic backdrop, the S&P 500 could witness a 2008-style collapse.<\/p>\n \u201cThis is how the 2008 bear market looked like, -50% in one year. Notice the extensive number of extremely positive news from October onwards. Sometimes, increasing liquidity is not enough.<\/em><\/p>\n Once credit markets break, it is very hard to stop the snowball.<\/em><\/p>\n We may be two tweets away from going in that direction. Europe retaliating in kind, and Trump losing it.<\/em><\/p>\n Of course, [we] would need more than that to have such a protracted bear market. 2008 was a credit crunch after all, which is not the case now.<\/em><\/p>\n But a trade war can trigger a credit crisis. Stagflation => consumer spending freezing => corporates blowing up => banks blowing up => dead.\u201d<\/em><\/p>\n He also believes that Trump\u2019s tariffs have increased<\/a> the odds that the US will witness a recession within a year.<\/p>\n \u201cIf this keeps escalating, yes, <\/em>anything is possible now, that\u2019s what\u2019s changed in my opinion, there\u2019s nothing off the table.\u201d<\/em><\/p>\n As of Monday\u2019s close, the S&P 500 is trading at 5,062 points.<\/p>\n Follow us on X<\/a>, Facebook<\/a> and Telegram<\/a><\/span><\/em>   Generated Image: Midjourney<\/span><\/em><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" A widely followed economist thinks that President Trump\u2019s trade war can trigger conditions that could catalyze a repeat of the 2008 stock market meltdown. Economist Alex Kr\u00fcger tells his 208,600 followers on the social media platform X that Trump\u2019s tariffs are creating conditions that could spark a new credit crisis when borrowers can\u2019t access credit […]<\/p>\n","protected":false},"author":2,"featured_media":387712,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-387707","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/387707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=387707"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/387707\/revisions"}],"predecessor-version":[{"id":387713,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/387707\/revisions\/387713"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/387712"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=387707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=387707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=387707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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