3:00. Europe is probably the worst of all. It's mainly the French who are probably the most hostile to anything. What we were all taught in school was propaganda from the 30s. If you look at the facts, after World War I, Europe had basically blown its economy out of the water. It was the place where all the sugar production and refining and all that was taking place. The British pound was the financial center of the world. It was the reserve currency, so they just blew themselves out of the water. So to try and recover, they put on excessively high tariffs after World War I, all before 1929. Sugar production, for example, had fled Europe and went to the Caribbean. Smoot-Hawley Tariff Act, 1930, only came out in 1930, a year after the crash, right. So, no serious economist that I ever saw blamed the tariffs for the Great Depression. That was all the Democrats during the 1932 election, just a fake rhetoric, you know, blaming Smoot-Hawely because they were two Republicans, and the tariffs were really on agricultural products. So that has hung over because FDR was using that, but, you know, look, the tariffs didn't prevent the Great Depression and they didn't cause it. It's as simple as that. What Trump has done, a 10% tariff, is a legitimate tariff. When you're talking about putting 20%, or 30%, whatever, that is a political tariff. That's the force negotiation; it's not realistic. And, so all these people freaking out saying it's crazy by the press. One of our readers I thought put it very well. He said, "If Kamala had won and this happened, they would be blaming the Republican capitalist for trying to make her look bad," which is exactly what they're doing. You have Bloomberg coming out and saying "Oh, the NASDAQ is in a bear market, the S&P is soon to follow." It didn't even take out the uptrend line. I mean what is this? The fake news is going all the way into financial now? Crazy, but they have created the crash and got everybody scared to hell. Our computer had projected actually April 7th as the target for the low well in advance. And we had said, look, there's going to be a short-term correction, then it'll turn back up. It was just tim[ing], that's all, like I said before. You can raise your hand in the air, no problem, but keep it there and eventually it gets very tired and it falls back down. That's what markets do. They run out of energy. I've said before. I was in Tokyo and this one guy bribed to get into one of our institutional sessions. He apologized and said, "I just had to talk to you." I said what was so urgent? He had bought $50 million dollars the very day of the high of the Japanese stock market, but what I found interesting was it was the first time he ever entered the market, and I asked him, "Why did you do this?" And he said, for 7 years, brokers had called him, and said the Nikki goes up 5% every January. And he watched it, and they were correct. So he tried it in December, 1989. So when you have suckered in the very last possible guy to buy, you're running out of energy. That's your arm standing straight in the air and you can't keep it up anymore. Who's going to buy? Everybody's long. That's what creates the crash because anybody that's been a serious trader gets into these incidents and everybody's trying to sell. And you call the broker, "Where is the bid?" There's no bid. That's when it goes down a thousand points because everybody's scared.
Showing posts with label 1930. Show all posts
Showing posts with label 1930. Show all posts
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