The Morning Sixpack - April 9, 2025

Markets still dropping, Trump admin caught up in court cases, and bond yields rise fastest since... 1982 (remember those good old days?)

U.S. Stocks Fall Amid Tariff Dispute; China Retaliates and Treasury Prices Fall

U.S. stocks are falling again after a very brief morning bump (another dead cat bounce) after President Trump's implementation of new tariffs and China's retaliation caused initial market turbulence. Despite widespread concerns over a potential recession, Trump and Treasury Secretary Scott Bessent attempted to reassure the public that the economy remains strong. LOL!

The impact of the tariffs, including a 104% levy on Chinese imports and China’s decision to raise levies on U.S. goods to 84%, rippled through markets, leading to a drop in U.S. Treasury prices.

Trump remarked, “BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!”

Yes, you heard right: “Just be cool. It doesn’t matter that your 401k has dropped 12 percent over the past week. When I’m done being president, the stock market might be where it was when I got it. BE GRATEFUL I didn’t take all your money, you dirty vagrant.”

Treasury yields also spiked, reflecting nervousness about long-term debt, as the 10-year U.S. Treasury note surged to its highest level since 2008. This rise in yields contributed to a global stock selloff, with Japan's equities plummeting 3.9% and European markets following suit with significant losses. The selloff intensified after Vanguard reduced its forecast for U.S. GDP growth to less than 1% for 2025.

Source: WSJ

U.S. Treasury Bonds Face Major Sell-Off as 30-Year Yield Sees Largest Jump Since 1982

U.S. Treasury bonds are facing a significant sell-off, with the 30-year yield spiking by the most since 1982.

This sharp rise in yields has investors on edge as it signals continued and worsening volatility in the bond market and a steep downward shift in investor sentiment. The sell-off comes amid broader market concerns over inflation and economic uncertainty, which are driving bond prices lower and yields higher.

“The 30-year yield has risen to levels not seen in more than four decades, a clear sign of the nervousness within the bond market.”

The increase in the 30-year yield has raised concerns that further interest rate hikes could be on the horizon, leading to more turbulence in the financial markets. As bond prices fall, the broader economic impact remains to be seen, with investors bracing for more fluctuations in the coming months.

Source: MSN

Interest rates, a primer:

Current Treasury Bond Rates Rise Fastest Since 1982

China Escalates Trade War with U.S., Imposes 84 Percent Tariff on U.S. Goods

In a dramatic escalation of the ongoing trade war, China has announced a fresh 50 percent tariff on all U.S. imports (bringing their overall tariff on US goods to a whopping 84 percent), a response to President Trump's decision to implement a sweeping 104 percent tariff on Chinese goods.

The new tariff will take effect shortly, intensifying the trade standoff between the world’s two largest economies. This move follows a series of tit-for-tat tariff increases, further souring the already strained relations between Washington and Beijing.

"The U.S.’s practice of escalating tariffs on China is a mistake on top of a mistake, which seriously infringes on China’s legitimate rights and interests,” the Chinese finance ministry stated.

In addition to the new tariffs, China has blacklisted 18 companies and imposed new restrictions, marking a significant intensification of its economic pressure on U.S. businesses. The European Union also joined the fray, approving retaliatory tariffs on U.S. products, including soybeans and motorcycles, in response to Trump’s steel and aluminum tariffs. The escalating trade war could have profound implications for global markets.

Source: Politico

Trump Administration Freezes Federal Funding to Top Universities Amid Controversial Lawsuit

In a surprising move, the Trump administration has frozen federal funding to two prestigious universities, Cornell and Northwestern, following a controversial lawsuit.

The freeze is a part of broader scrutiny over universities' handling of funds and allegations related to misconduct. As tensions rise between the federal government and higher education institutions, this development marks a significant turn in university funding politics.

The lawsuit, which has gained national attention, claims that both universities have mishandled federal funding, leading to accusations of fraud and financial mismanagement. The decision to freeze funding impacts a wide range of university programs and could affect research projects, student grants, and faculty salaries.

"This action underscores the need for accountability in the use of taxpayer dollars," a government spokesperson said.

While the freeze remains in place, the universities are challenging the decision, arguing that it is a politically motivated attack that could have far-reaching consequences for academic freedom and the integrity of research. The outcome of the case could set a precedent for how future funding disputes are handled.

Source: AP News

This administration is petty beyond belief. It is these petulant acts of retribution that will fully tear down our institutions. It’s only a matter of time until the US is irrelevant.

New Social Security Policy Forces Seniors and Disabled Americans to Travel or Apply Online for Benefits

Starting Monday, Americans seeking retirement or survivor benefits from the Social Security Administration (SSA) will no longer be able to apply over the phone. Instead, they will be required to either use online services or visit a local SSA field office in person.

So get your gramma set up on her smartphone!

According to a new analysis by the Center on Budget and Policy Priorities (CBPP), this policy shift will require some 6 million seniors to make a "45-mile trip" to access services, significantly impacting those in rural areas. But remember, the Trump admin is closing a slew of offices, so this will get WORSE.

The CBPP argues that this change "will close off an important mode of service for millions of people" who rely on phone applications.

"More than 4 in 10 retirees apply for their Social Security benefits by phone, as do most spouses who are eligible for benefits," the CBPP stated, emphasizing the disruption this new policy will cause.

Additionally, the change affects bereaved family members who have traditionally applied by phone after the death of a loved one. Nope, you get to grieve in an overcrowded office for hours. America!

While the policy was announced last month and partially rolled back after criticism from disability groups, SSA officials say it is intended to combat fraud and improve identity verification for applications.

Advocates for seniors and people with disabilities argue that the new requirements create significant barriers to services, particularly for those in more isolated areas. Kathleen Romig of the CBPP highlighted the burden this places on the elderly and disabled, many of whom face difficulties in traveling or navigating online systems.

"Not everyone drives, particularly seniors or people with disabilities," Romig said, emphasizing that in-person appointments can be physically challenging for many of the SSA's most vulnerable clients.

Make no mistake: The Trump administration KNOWS THIS. They want people to just give up. “Take your beating with grace, okay, Grampa.”

Source: NPR

Outrage as Idaho Police Shoot Autistic Teen in Pocatello

In a tragic incident that has sparked national outrage, Idaho police officers opened fire on a 17-year-old autistic boy, Victor Perez, after he allegedly approached them with a knife.

Perez, who also has cerebral palsy, was critically injured in the shooting and remains in the hospital with multiple gunshot wounds.

The incident occurred in Pocatello, Idaho, where the police, arriving within minutes, shot the teenager from behind a chain-link fence, raising questions about the use of force and the lack of de-escalation efforts.

Witnesses, including Brad Andres who recorded the video, expressed their shock at the officers' actions. Andres described the police as acting like a "firing squad" and criticized the lack of communication with Perez.

The police have been given even more permission to shoot first and (maybe) ask questions later by the lawless Trump administration, who will simply pardon any cops found guilty of murder (Derek Chauvin is being considered for a pardon).

The police officers did not appear to use less lethal options or attempt to back away from the situation, despite Perez’s apparent mental disabilities and the lack of clear immediate danger.

As his aunt Ana Vazquez shared, "They just said get back and they just, they shot to kill."

The Pocatello Police Department has promised a full investigation, but community members and advocates for the disabled have raised concerns over the way the situation was handled. There is a growing call for better training in identifying and interacting with individuals who have developmental or intellectual disabilities. The incident has prompted protests and discussions about police tactics and their interactions with vulnerable populations.

Source: CNN

Sorry, y’all, this is not about poor or improper training. It’s about hotheads who are given legal authority to kill if they feel threatened. I bet we find these cops have had prior issues. Just a guess!

BONUS Article

Venezuelan Migrants Challenge Deportations After Supreme Court Ruling

Following the U.S. Supreme Court's decision to lift a ban on expedited deportations of Venezuelan migrants under the 1798 Alien Enemies Act, two detainees have filed a fresh challenge in New York.

The case represents a continuation of the legal battle over the use of the controversial law, which allows for deportations of alleged gang members without standard judicial review. The migrants, identified as G.F.F. and J.G.O., are seeking to prevent their removal while their broader legal challenge unfolds.

The two men, both Venezuelan nationals, argue that they were not given a fair opportunity to contest claims they are members of the Tren de Aragua gang, a group the U.S. considers a foreign terrorist organization.

The ACLU, representing the detainees, has expressed concerns that innocent individuals may be wrongfully deported under the law, noting the "unacceptably high risk" of errors in such cases.

In a statement, Trump-appointed U.S. Attorney General Pam Bondi confirmed the administration’s commitment to deporting alleged terrorists, while the Supreme Court ruling permits the deportations to move forward with some restrictions, including the requirement for detainees to challenge their cases in the state where they are being held.

Source: Reuters

Yes, you read that right. The plaintiffs sued in the wrong jurisdiction, according to the SCOTUS. So they have to do all this bullshit again in a much more rightwing state (Texas). And this doesn’t even begin to address the 300 or so people already deported. Our country is a mess.