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Matthew Yglesias comments on the pattern of market movements influenced by statements from Donald Trump that lack concrete solutions. According to Yglesias, when market gains are driven by vague messaging that does not resolve underlying issues, it reduces the likelihood that incentives will align to achieve substantive resolutions.
He suggests that this dynamic may lead to recurring cycles, with similar situations likely to reappear if core problems remain unaddressed.
Yglesias has previously pointed to disruptions in energy markets. He said a shutdown of one fifth of global oil production raised questions over how key players handled the fallout. In another note, he argued that a 15% drop in global crude oil supply would require much higher prices to balance demand.