Wall Street goof on Trump deals could lead to another 2008 meltdown: Fox analyst

Reacting to the financial markets staying strong despite Donald Trump's on-again off-again trade policies, Fox News business analyst Charles Gasparino suggested their bullishness could be setting the U.S. up for a fall.

On the same that the president posted on Truth Social about his negotiation difficulties with China, where he wrote, "I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!" Gasparino pointed out the entire trade war could collapse into a "big bowl of nothing" and that some financial analysts are placing their bets on that.

On X, the market analyst wrote, "BREAKING: Stock market is pricing in Trump's tariffs as one big bowl of nothing; that he and Bessent will negotiate them down to a meaningless level. If that's the case, Trump would have wasted months of political capital and our trade relations are back to square one, though the economy dodges a bullet."

Having said that, he admitted that, if the analysts are wrong and the markets are hit with a delayed reaction to the tariffs because the damage is already done, there could be financial devastation on the horizon by writing, "But even worse: If the market is somehow misreading Trump or not fully factoring the extent of his tariffs and what they will do to the economy in terms of inflation or maybe stagflation."

"I saw this misread in the run up to the 2008 financial crisis," he noted before explaining, "Recall how the stock market hit then historic highs in Nov. 2007, just before the bottom fell out early the following year beginning with bond insurers imploding, then subprime lenders, Bear Stearns, Lehman Bros., and all the rest by September. The correction was more pronounced since the initial read was so far off."

When a follower on his feed responded, "The 2008 financial crises wasn’t caused by 'mis-reading the market.' It was caused by fraudulent selling of a made up financial product - derivatives trading of another fraud - an over inflated housing market, which, as far as we know, by the way, Wall Street still does. They just call it something else," Gasparino shot back.

"Lets be clear--much of the 2008 financial crisis was a liquidity crisis made worse by a lack of confidence in the banking system's health. Many of those MBSs at the center of the crisis were money good but trading at pennies on the dollar because of a run on the bank. The loss in confidence was clearly responsible for much of the intense downdraft. How do I know? I covered it, literally from the vantage point of the trading desks all the way up to the C-suites. That while this guy was reading my stuff and trying to sound smart," he replied on his social media.

You can see his feed here.