Here is an anecdotal discussion that is likely taking place inside of every asset management firm of repute now, in light of recent Trump controversy. There’s nothing worse than the unknown — the dark, cavernous, winding hallways that lead to catacombs festooned with traps.
Larry Kudlow and Mark Zandi joined a desk filled with CNBC anchors to discuss the recent events, which have Kudlow scratching his hairless head.
“Why didn’t Comey instruct the Attorney General that he heard an obstruction of justice?”, pondered Kudlow.
Zandi made the point that all of these distractions and ‘murkiness’ only serves to derail tax reform. Kudlow conceded that tax cuts might be dead — but wasn’t giving up hope for healthcare reform.
Mark Zandi rejected a ‘thesis’ by a CNBC anchor who stated his sources inside the GOP saying they were going to pursue their own agenda and not Trump’s. Zandi said, ‘at the end of the day, you need leadership from the executive branch to get anything done’ — citing issues with the debt ceiling and tax reform that are being left abandoned due to all of the ginned up scandal.
‘I don’t just believe he’s going to court for impeachment in the house of representatives. […] I can’t just throw in the towel. That would be absolutely incorrect,’ concluded Kudlow.
Markets are in free-fall mode, now lower by 330. The Nasdaq is off by more than 130, as investors flee risk assets for bonds, gold, REITs and utilities. The USD/JPY cross has been shattered, which typically occurs during market routs — now off by 1.76%. The dollar is lower vs the euro by 0.6%. And, the 10 yr treasury yield is down 11bps to 2.21%.
Volatility is the big winners today — the Black Swan bet, higher by 35% to $14.39.
Content originally published at iBankCoin.com
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