“U.S. stocks continued their sharp decline on Tuesday, fueling talk of a worst-case scenario for both Wall Street and the broader U.S. economy heading into 2016. And it is one that could make it all but impossible for Hillary Clinton or any other Democrat to win the White House,” Politico reports.
“Under this scenario, a further collapse in China reignites fear in U.S. markets. A strengthening dollar hurts exports while job growth, which is already slowing, stalls out completely. Meanwhile, Janet Yellen and the Federal Reserve make a huge policy mistake and raise interest rates too soon, choking off what little growth we have. If all this comes to pass, markets could return to free-fall, the U.S. economy could tip back into recession and voter attitudes about the direction of the country — already highly negative — could hit historic lows.”
