That is exactly what Dowd was talking about. The tariffs
Posted on: April 4, 2025 at 21:53:57 CT
JeffB
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and cutbacks on government spending would necessarily cause a sharp, temporary correction due to a cleanup of the excesses that have been accumulating for quite some time.
Time will tell how much that liquidation of misallocated assets and adjustments will take.
Part of that will depend upon how our trading partners react. Will they want to double down and cause even more damage via a tarriff war, or will they back down and agree to fair trade practices with us.