Story thread · 2 reports / 2 sources

‘Red flashing signals’ flagged on Fox Business as Trump economy mirrors historic crash

rawstory.com · 7h · first reportShare

Investor and market expert Lawrence McDonald highlighted a series of “red flashing signals” Tuesday during an appearance on Fox Business, signals that he warned were “very similar” to conditions leading up to the 1987 global market crash known as Black Monday . Founder of The Bear Traps Report and a former Lehman Brothers vice president who co-wrote the bestselling account of the bank's 2008 collapse, "A Colossal Failure of Common Sense," told Fox Business host Cheryl Casone that President Donald Trump’s tariffs were producing weaker results even as bond markets flash global warning signs. “We're getting diminishing returns on the tariffs, but on the bond side, this is a global story,” McDonald said. He explained that climbing rates are dragging bond prices lower, making bonds an increasingly attractive rival to stocks for investor cash. “When bonds start to offer competitive returns relative to stocks, that's when the risk-reward deteriorates – it's very similar to the summer of '87,”