On Monday, the markets had one of its worst trading days since the 2008 financial crisis. Stocks tumbled around the world, with a global sell-off, amid fears of a recession. The VIX (an index often called “Wall Street’s Fear Gauge”) was at times today as high as we saw it when the economy was shutting down for Covid.
This comes on the tail of a pretty insane news cycle: a presidential assassination attempt, Joe Biden dropping out of the race, the coronation of a new Democratic nominee, a stolen election (actually) in Venezuela, a Middle East on the brink of war. . . should I go on? But the most pressing issue to most Americans is and always has been the economy.
And with everything else going on, many of us have been paying far too little attention to the economic story here at home, and the policies that may have brought us to this moment we find ourselves in today.
To explain how we got here is Larry Summers. Summers was Secretary of the Treasury under President Clinton, and he was the director of the National Economic Council under President Obama. He was president of Harvard for five years. And he is one of the world’s most prominent economists.
Today: What is going on in the market? What caused it? Was it avoidable? What happens next? And what are the long-term repercussions?
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