Fox & Friends guest suggests market backlash to Trump's trade war with China is happening because "New York City is the epicenter of liberal Democratic thinking"
Peter Morici: "There's a psychology on Wall Street." If "The Wall Street Journal says it's bad, they are going to take that cue and the market's going to go down."
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From the May 6 edition of Fox News' Fox & Friends:
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BRIAN KILMEADE (CO-HOST): Where are we at and what's the market going to do when they see this?
PETER MORICI (UNIVERSITY OF MARYLAND PROFESSOR): Well, certainly the market is going to take a hit. Because there's a psychology on Wall Street. You have to remember, New York City is the epicenter of liberal Democratic thinking. So, you know, if President Trump says something like this and Bernie Sanders says it's bad or, you know, The Wall Street Journal says it's bad, they are going to take that cue and the market's going to go down. But the reality is, with the tariffs, the economy has grown much more rapidly in the United States and much more slowly in China. But what's going on? The Chinese are bi-cycling President Trump thinking is he weak, thinking he is vulnerable with reelection coming up, and he won't take the hit in the stock market. So they're backing down or they're backing away, they want to renegotiate what's already been agreed to, on things like intellectual property, the theft of American patents and so forth. The president has to hang tough.