PHILADELPHIA (CBS) — Financial Television Host Lou Dobbs addressed this week’s market volatility, pinning the blame for most of the stock losses on China and warning investors to be cautious.
Dobbs told Dom Giordano on Talk Radio 1210 WPHT that, while the markets are finding their footing, now is the time to tread very carefully.
“We lost $2.2 trillion in market cap over the past three days. Think about about, $2.2 trillion. You’re going to hear a lot people urging investors to jump back in the market, get in before it’s too late, and I’m begging, take it easy. Relax. This is not a time for heroics or for greed to take control and say, that’s got to be a bargain.”
He believes an imbalance in our trade relationship with the Chinese puts the US in an unnecessarily risky position.
“They have $1.3 trillion in our reserves. We owe immense sums of money too them. We have, still, a $300 billion trade deficit, the largest deficit we run in trade with any country. It’s time to create a mature responsible trade relationship. I think it’s ten years past time.”
Dobbs stated he supports greater market controls on imports from China, because their government puts the same restrictions on our exports.
“We have idiots running around talking about free trade. They don’t even know what they’re talking about. It sounds good and people attach themselves to the label, but free trade means that we have tariffs imposed against our goods, services that we bring, the level of investments that we can make in China, while they unfettered access to the world’s greatest consumer market. It’s utter stupidity.”