- The fact prices in the bond market are in decline at the same time as the stock market suggests there may be a liquidity crisis in the financial sector happening at the same time as the trade tariff crisis. Both phenomena could be on the scale of the 2008 financial crisis, if President Trump does not change course. Some investment managers are calling for intervention by the U.S. Federal Reserve.
You can forgive yourself if, before today, you had never heard of “the basis trade.” You had no reason to.
