David Stockman says coronavirus is sparking a financial crisis, warns ‘Wall Street is toast’

Main Street may be more resilient than Wall Street during the coronavirus crisis. Former Office of Management and Budget director David Stockman warns the pandemic is exposing risky speculation and shaky market fundamentals. “Wall Street is toast,” he told CNBC’s “Trading Nation” on Thursday. “It’s going to end as a financial crisis because the illusion that central banks always have your back and the economy would keep expanding and growing forever and ever … was complete nonsense.” Stockman, who served under President Ronald Reagan, has been forecasting an epic market…

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Trumplomacy hits Russian wall

Reminder: that’s when lawmakers questioned whether Rex Tillerson’s history of doing business deals with Russia would make him too cosy with the Kremlin to represent US interests as America’s top diplomat. Fast forward to Mr Tillerson’s reception on Wednesday by his Russian counterpart, Sergei Lavrov. Mr Lavrov levelled a litany of complaints about the “extremely ambiguous and contradictory” policy talk in Washington and “unlawful” US strikes in Syria. Then he twisted the knife a bit, pointedly noting that many key State Department posts have yet to be filled by the…

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Wall Street rises with oil; investors shrug off Italian referendum

Financial shares and strong oil prices bolstered U.S. stocks on Monday while currency and bond investors shrugged off Italian Prime Minister Matteo Renzi’s resignation, following voters’ rejection of his constitutional reforms. The Italian referendum stoked worries about Italy’s political stability and its banking system, but U.S. Treasury yields reversed their fall as the initial demand for low-risk U.S. government debt faded with a euro and stock price revival. “The initial reaction was quite negative, but as we have seen recently with other political events, risks will likely be played out…

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