Recession Fears Building

I find it interesting that the market has been up for 10 years since the mortgage meltdown in 2008.
During that time, the mortgage industry was exposed with the bad loans that were allowed by the policies passed during President Clinton's term in office. As the United States had a record number of loan defaults and banks were failing left and right. The Federal Reserve Board quickly dropped the Fed Funds Rate for a number of times in a row. The problem was the Adjustable Rate Loans that were used by most mortgage companies were based on LIBOR (London Interbank Offer Rate) which was steadily increasing their rates constantly. This compounded the problem with loan defaults.

I don't know what kind of loan or bank issues are happening in China, but they are going through a Bear Market currently and the Federal Reserve is continuing to increase the Fed Funds Rate which to me sounds similar to what happened in 2008 when we were going through our crisis.

China's bear market could filter across the world over time. President Trump's tariffs on China, with

our rising interest rates and a strong dollar might keep China in a bear market for a while. China is lowering there interest rates which only adds more fuel to the fire.

There was good news with Amazon acquiring a pharmaceutical company that specializes in mail order. The FANG stocks started down and came up some with Amazon making up most of what it lost yesterday. This appears to be short lived as we still wait until July 6 to find out what the real tariffs are going to look like. Either way, it appears to be strengthening the United States for the future and hopefully reducing the US debt.

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