Renowned Economist Warns of Potential Stock Market Meltdown Triggered by Trump’s Trade War
A widely followed economist, Alex Krüger, has raised concerns that President Trump’s trade war policies could lead to conditions that may result in a repeat of the 2008 stock market meltdown. Krüger, who has a significant following of 208,600 on the social media platform X, believes that Trump’s tariffs are creating a situation where a new credit crisis could emerge due to difficulties in accessing credit, even for borrowers willing to pay interest.
Krüger explained in a recent tweet that if lenders lose confidence in issuing new debt amidst an uncertain macroeconomic environment, the S&P 500 could experience a collapse similar to the one seen in 2008. He emphasized the importance of monitoring credit markets, stating that once they break, it can be challenging to halt the ensuing financial turmoil.
Furthermore, Krüger expressed his belief that Trump’s tariffs have increased the likelihood of a recession occurring in the United States within the next year. He warned that if the situation continues to escalate, any outcome is possible, underscoring the unpredictability of the current economic landscape.
As of the latest market close on Monday, the S&P 500 is trading at 5,062 points, reflecting the ongoing volatility and uncertainty surrounding global trade policies and their potential impact on financial markets.
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