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RE: DOW-JONES down well over 500 at strong support should mount a rally...but be very very careful and nimble.

in #investing6 years ago

good point..interest rates of course..but tariffs are detrimental. Herbert Hoover and the Smoot-Hawley tariff of 1930 is going to be a replay. It exacerbated the great depression.

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But that was before fiat currencies. Now you just print so much money that everyone can afford to pay the tariffs. No big deal. Maybe it IS a big deal because the tariffs are bigger than the tax cut/spending increases. But I'm just saying...the government couldn't just hand out checks to everybody during Smoot-Hawley. Now they can. Also, the trade deficit has actually increased since the tariffs were enacted, which implies that they aren't impoverishing people enough to keep them from buying imports. So we'll see. Maybe the 25% hitting in January will finally tank the economy. I'm just not sure they won't spend themselves out of this dilemma like they have all the other times.

excellent points! thanks again..

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