Brace Yourselves: The Economy’s About to Pull a 1987 on Us

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So, the U.S. stock market futures decided to take a nosedive on Wednesday. 🎢 Dow Jones futures dropped 1.9%, while S&P 500 and Nasdaq futures were like, “Hold my beer,” and plunged over 2% each. The 10-year Treasury yield hit 4.4%, and the 30-year yield briefly flirted with 5%, because why not add a little drama to the bond market? 💅

Meanwhile, President Trump’s tariffs are out here playing Monopoly with the world. Europe, Japan, Vietnam, and especially China are getting slapped with taxes like they’re late on rent. Chinese products? Over 100% in tariffs. At this point, trade between the U.S. and China is basically a toxic relationship. 🚩

China’s Big Treasury Yard Sale

Rumor has it China sold $50 billion in U.S. Treasuries. Was it to pressure the U.S.? Or just to make room for more gold? 🤔 Either way, they’re stockpiling the shiny stuff like it’s Black Friday, reducing their reliance on the U.S. dollar. Smart move, or just petty? You decide.

Goldman Sachs analysts are like, “Foreign investors? Yeah, they’re over U.S. assets.” Reuters reports that several foreign governments are actively trying to ditch the U.S. dollar. It’s giving “It’s not you, it’s me” vibes. 💔

Is 1987 Back for a Sequel?

Experts are whispering about a potential 1987-style crash. Because apparently, the economy loves a good throwback. 🎬 Peter Schiff, everyone’s favorite crypto critic and professional doomsayer, has been tweeting up a storm about it. He’s suggesting an emergency interest rate cut and a massive QE program, or else we’re in for a Black Monday rerun. 🚨

As I warned earlier, the Treasury market is crashing. The yield on the 10-year just hit 4.5%, and the yield on the 30-year just hit 5%. Without an emergency rate cut tomorrow morning and the announcement of a massive QE program, tomorrow could be a 1987-style stock market crash.

— Peter Schiff (@PeterSchiff) April 9, 2025

Schiff’s warning? The bond market crash is worse than the stock market crash. And if these tariffs stick around, we could be looking at a financial crisis that makes 2008 look like a minor hiccup. 🥴

Did Trump’s Plan Just Faceplant?

Schiff thinks Trump’s strategy to lower interest rates by triggering a recession has backfired. If the tariffs aren’t rolled back soon, we could be in for a crisis worse than 2008. Bitmex founder Arthur Hayes is also pointing at the MOVE index, which is now at 139.88, as a warning sign for the Fed to step in. ZeroHedge called the chaos an “absolutely spectacular meltdown.” 🍿

Will the Fed Save the Day?

Speculation is rising that the Fed might pull an emergency rate cut or a new QE program to stabilize things. But so far, crickets. 🦗 Markets are on edge, waiting for the Fed to make a move. Expectations for a rate cut in May have surged from 10.6% to 58.9%. If the Fed cuts rates, Bitcoin and crypto could rally. If not? Stocks and crypto might take another hit, with Bitcoin possibly dropping to $70K. 📉

Meanwhile, the 10-year Treasury yield jumped 17.16% in 72 hours, and Bitcoin is trading at $77,048, down over 2% in the past day. So, grab your popcorn, folks. This economy is serving drama. 🍿

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2025-04-09 14:08