Europe 'in battle mood' over Trump's threat on steel imports: "We will react with counter measures within a few days"

Ok, I'll elaborate more as that's fair. My thoughts on this matter have been influenced by Nassim Taleb so you could find a far better version of what I'm saying from his work. He's far smarter than me.

I think the US economy has become so complex that it's now more susceptible to tail risks. When you add a bunch of leverage to that (public debt, student debt, lack of savings for retirement, mortgage debt etc.) the system becomes more fragile to random disastrous events.

Using the subprime mortgage crisis as an example we saw that even a 4% increase in the subprime mortgage failure rate (4% to 8%) was large enough to crater our entire economy and would have driven many banks bankrupt. Likely many more companies through second order effects.

Imo, our economy is far too complex to safely hold the debt levels that we have and if the right event happens (and I believe one will one day) then our economy will crater.

Obama saved a debt crisis by adding more debt and shifting it from private to public. It's certainly not all his fault, but he is definitely one of the largest contributors to our current situation.

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