Remember Smoot-Hawley


I'm not saying this is a sure thing, but look for the equity markets to tank tomorrow on news that the U.S. will impose new restrictions on Chinese exports of men's and boy's clothing.

Markets had rallied on news that the Treasury Department, while calling on China to cease yanking the yuan around like a White House reporter at a press briefing, had stopped short of actually doing something about the yuan yanking, like imposing trade sanctions.

When governments signal that they intend to stop markets from working, markets tend to respond.