Loading ...Bessent Says Market “Corrections Are Healthy”, Offers “No Guarantees” There Won’t Be A Recession
“What’s not healthy is straight up, that you get these euphoric markets. That’s how you get a financial crisis. It would have been much healthier if someone had put the brakes on in ‘06, ‘07. We wouldn’t have had the problems in ‘08.”
In the interview, Bessent said the American Dream isn’t contingent on being able to buy cheap goods from China. Families instead want to afford a home and see their children do better than they are.
“And could there be an adjustment? Because I tell you that this massive government spending that we’d had, that if that had kept going, we have to wean our country off of that. And on the other side, we are going to invigorate the private sector. I had a meeting with small bankers last week. And they are ready to start lending. And I can tell you that Main Street is going to do well.”
A strong message has just been sent …… is everyone listening?
They know it’s coming, but they are certainly underestimating the severity of this impending downturn. I’m reminded of Reagan’s first years when the economy seemed unable to find its footing after Volcker’s precipitous rise of interest rates. Eventually, things turned around, but the U.S. was much stronger, and much less indebted in those days. It’s going to take more than lowering rates this time to turn things around. If we think we have seen profligacy in the past, well we ain’t seen nothin’ yet! I’ve said in here that Trump’s term will be very difficult. Cheerleading his foreign policy will prove to be embarrassing. We should be criticizing his every move that doesn’t involve a retrenchment of America’s reach and resources. Able crisis management doesn’t wait for the crisis. It sees it coming, and positions to avoid it.