Wednesday/ gone: Chief Economic Advisor

Brett Stephens writes in the NYT that we do not know if Trump’s Chief Economic Advisor Gary Cohn quit ‘out of horror of the president’s protectionist turn, or merely out of the pique of losing a policy argument’ (over the trade tariffs).   What is certain, is that the Trump Administration is looking increasingly unstable and unable to retain key personnel.

The Republicans are finally getting worried that Trump’s economic and trade policies might make trouble. (They were not too worried about the tax cuts massively increasing the deficit). The House sent a letter today, signed by 107 representatives, asking Trump to refrain from implementing broad-based tariff measures that could trigger trade wars with Europe, China, and even Canada.

Will we be OK? It’s been 10 years since 2008’s global financial crisis. During a Reddit ‘Ask Me Anything’ last week, Bill Gates was asked if, in the near future, the U.S. will have another crisis similar to 2008.  ‘Yes’, he said, admitting that the question would be better directed at Warren Buffet. ‘It is hard to say when, but this is a certainty’.

The conclusion of Matt Taibbi’s article called ‘The Great American Bubble Machine’ that appeared in Rolling Stone Magazine in 2009.  The article detailed the excesses and greed from the giant financial firms such as Goldman Sachs, and the lack of government oversight, that led to the 2008 crisis. Here we are in 2018, and I don’t think anything has changed. 

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