Kevin Warsh is one of the behind-the-scenes causes of this market crash. Trump wants: lower interest rates. Warsh wants: stricter balance sheet discipline. The market fears: only rate cuts, but no QE. The QE reversal era is no longer guaranteed, and the market is starting to price in this reality. Warsh is like a "butler who may give you the sweet taste of rate cuts but will also withdraw your credit card limit." That’s why the market reacted with panic selling immediately after learning of his nomination.

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