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There was omens that placed today as another “black Monday.” The original occurred on October 28, 1929 and was one of the days More devastating In the history of Wall Street when the Dow Jones index collapsed 12.8% in a single day, losing billions of dollars in market value. The consequences then lasted decades. In the end it will not be so much, But “almost”. In fact, the last days will be recorded as one of the worst of the history of financial markets. An unprecedented collapse. In a surprising turn for Wall Street, the recent wave of tariffs promoted by President Donald Trump has triggered one of the most severe stock market collapses in recent history, making more than thunder from 5 billion dollars in share value in just two days and dragging Global markets. Nasdaq 100 entered GUBBER TERRITORYthe Commodities They collapsed and investors in corporate bonds ran to buy Insurance against defaults. The magnitude of the impact, fueled by rates up to 50% imposed on dozens of countries, even exceeded the worst forecasts, and marked the breakdown for a financial ecosystem that for decades was one of the main beneficiaries of presidential power in the United States. Trump, strategic chaos and indifference. Bloomberg had that, far from showing concern, Trump seems to be hugged the turbulence Stock as a necessary price to correct the imbalances of global trade. In private and public, he insists on standing firm, and has begun to focus his attention on assets such as 10 -year Treasury bonds and oil pricescelebrating their falls without recognizing that they could precess a recession. The markets and the breakdown. After weeks of speculation about whether the tariff threats were not real, investors finally accepted the Scenario severity. More than twenty previous ads had been nothing, but the 11% collapse In two days he forced Wall Street to react. Besent, who allegedly had to moderate Trump, has been harshly criticized for not preventing such a disaster. Although some still expect the president to reconsider if the pain persists (today has said that it will not turn back), the fall of the Asian bags (with collapses up to 7.9%) and the Activated firewall In Japan they reflect that increasingly global destabilization. Some historical data in context: the day was worse than 99.6% of business days since 1929. It was also the worst of all time (more than 24,000 days) and the 35 worse day since 1945 Almost black Monday. As we said, the stock market has continued this morning, and although the worst omen were not fulfilled, the situation is equally disastrous. After confirming Trump that It will not go back In its aggressive commercial policy, defended as “necessary medicine”, the main world indices recorded dramatic collapses: The S&P 500 fell 2.8 % (The worst performance three days for the index since October 1987, or the Eleventh of all timebeing the tenth and twelfth during the great depression), the Nasdaq 3.1 %, and the Hang Kong Hang Sang index sank 13 %, its worst day of the century. In EuropeStoxx 600 lost 5.3 % and the German Dax briefly exceeded 10 % drop in opening. Goldman Sachs raised the probability of recession in the United States at 45 %citing the abrupt hardening of financial conditions after tariffs to many of the key commercial partners. Tariffs imposed by the United States “Victoria” by Trump. Despite the warnings, Trump has celebrated in networks that tariffs “will bring tens of billions to the country” and described the situation as “something beautiful to contemplate.” The Financial Times counted that the fear of a self -inflicted recession grows even between figures related to the president: the investor Bill Ackman warned of an “economic nuclear winter” and Stanley Druckenmiller He criticized any rate above 10 %. On the other sidewalk, the secretary of the Treasury, Scott Besent, minimized stock tremors such as “short -term reactions” and reaffirmed that the White House You will keep your course. The immediate reality, however, is that systemic collapse of actions, Commodities and coins that threatens to unleash a global recession caused from Washington. Memories of the past. References to Black Monday, 1929 and others collapses Historical have not been long in coming. During that decade, millions of Americans invested in the stock market, many buying actions on credit with margins of just 10%, which amplified panic when prices began to fall. As a direct consequence, between 1929 and 1932, the market lost about 89% of its valueunemployment in the United States exceeded 25%, more than 9,000 banks broke, and the country’s GDP was reduced in almost 30%. That stock market crisis not only plunged the United States into The great depressionbut it had economic and social repercussions worldwide, altering the global economic order throughout the 1930s. Comparisons. We are not in the same box, of course, but The data They are equally worrisome. Let’s think that the last two days of stock market are worse than 99.6% of the days of the stock exchange since 1929. Perhaps, many analysts agree that the current stock market situation caused by the Trump tariff offensive and the intensification of the trade war can be compared, in terms of volatility, loss of investment confidence and systemic risk, with the 2008 global financial crisisalthough with fundamental differences in its causes and nature. As in 2008, markets have experienced abrupt collapses: those More than 5 billion dollars who vanished from the value of US actions In just two daysand the Nasdaq 100 entered the bassist territory, which reflects a collapse of the feeling of similar or very similar to panic lived after the Lehman Brothers bankruptcy. A deliberate crisis. Also, as then, corporate bond markets are showing voltage signals. However, while in 2008 the epicenter was the collapse of the financial system and the mortgage market, the current stock market has a clearly political component: it originates from unilateral commercial policy decisions, which introduce uncertainty about the economic direction of the country. For … Read more