Market corrections are as certain as blizzards and hurricanes. Unlike natural disasters, market slides are always anthropogenic in origin. That is settled science.
Corrections and crashes differ by an order of magnitude. Corrections are unavoidable. Crashes on the other hand, are a little more predictable.
One way to wreck a market is to inflict a constitutional crisis. The damage can be maintained by eaving the crisis unresolved.
Leading up to the release of the Nunes Memo, the market stalled. On the day it was released, the DJIA lost 666 points, a 2.6% drop. On the next trading day, the DJIA closed at 4.6% below it opening. What to make of these numbers?
One interpretation is that investors are taking Nunes' revelations much more seriously than the news media are taking it. There is a price to airing scandal but it has to be revealed anyway. Investors are hesitant to jump face first into a crooked system.
Once more, the media will blame Trump for the market crash. The president is responsible to the extent that he fails to clean house. Revelation is good but resolution is essential. It is time to act.
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