{"id":301334,"date":"2026-01-24T13:08:06","date_gmt":"2026-01-24T13:08:06","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/301334\/"},"modified":"2026-01-24T13:08:06","modified_gmt":"2026-01-24T13:08:06","slug":"taco-trump-greenland-and-the-slow-erosion-of-us-market-trust-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/301334\/","title":{"rendered":"Taco Trump, Greenland and the slow erosion of US market trust \u2013 The Irish Times"},"content":{"rendered":"<p class=\"c-paragraph paywall \">Amid all the hullabaloo about <a href=\"https:\/\/www.irishtimes.com\/tags\/donald-trump\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/donald-trump\/\">Donald Trump<\/a>, <a href=\"https:\/\/www.irishtimes.com\/tags\/greenland\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/greenland\/\">Greenland<\/a> and his latest <a href=\"https:\/\/www.irishtimes.com\/tags\/us-tariffs\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/us-tariffs\/\">tariff<\/a> threats, the Taco trade \u2013 Trump Always Chickens Out \u2013 continues to rule markets.<\/p>\n<p class=\"c-paragraph paywall \">Almost every flare\u2011up from tariff threats to territorial fantasies has been met with murmurings of fright followed swiftly by relief rallies once Trump has softened his stance. Even before Trump\u2019s tariff climbdown, Rosenberg Research\u2019s David Rosenberg was noting that belief in the Taco trade \u201chas proven time and again to be very difficult to break\u201d. <\/p>\n<p class=\"c-paragraph paywall \">BCA Research\u2019s Marko Papic was similarly nonchalant, framing the bond market as the \u201cconstraint mechanism\u201d that ensures the Taco trade sticks, rather than turning into a \u201cmessy enchilada\u201d.<\/p>\n<p class=\"c-paragraph paywall \">Markets treated the subsequent retreat from Greenland\u2011by\u2011force as exactly that: another Taco moment, with stocks rebounding and volatility easing. Not that volatility was ever that escalated; note that the Vix, Wall Street\u2019s fear index, barely exceeded its long-term average of 20.<\/p>\n<p class=\"c-paragraph paywall \">All this shores up the short\u2011term view that political noise doesn\u2019t necessarily translate into sustained market damage. However, beneath the surface, the narrative is shifting. <\/p>\n<p class=\"c-paragraph paywall \">Swedish economist Anders \u00c5slund says the US has become \u201cout of bounds\u201d and that no one can take the country seriously or trust in any kind of agreement as long as Trump is president.<\/p>\n<p class=\"c-paragraph paywall \">Bond giant Pimco is more polite, saying we are in \u201ca multiyear period of some diversification away from US assets\u201d, referring to \u201cunpredictable\u201d policies.<\/p>\n<p class=\"c-paragraph paywall \">Even firms that remain overweight in the US admit the biggest danger isn\u2019t earnings but political risk, with Goldman Sachs saying the greatest threat to the US is the \u201cdegradation of the rule of law and the system of checks and balances\u201d.<\/p>\n<p class=\"c-paragraph paywall \">The danger is this becomes a \u201ccumulative process, a little bit like a mound of sand\u201d, says high-profile Allianz economist Mohamed El-Erian. \u201cYou keep on adding particles of sand, nothing happens \u2013 and then suddenly, the shape of the mound changes completely.\u201d<\/p>\n<p class=\"c-paragraph paywall \">Investors may still be comforted by the Taco trade, yet with each added grain of sand, the US\u2019s once\u2011taken-for-granted reliability edges closer to a reckoning. <\/p>\n","protected":false},"excerpt":{"rendered":"Amid all the hullabaloo about Donald Trump, Greenland and his latest tariff threats, the Taco trade \u2013 Trump&hellip;\n","protected":false},"author":2,"featured_media":301335,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[79,140613,356,18,17768,19,17,1411],"class_list":{"0":"post-301334","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-davos","10":"tag-donald-trump","11":"tag-eire","12":"tag-greenland","13":"tag-ie","14":"tag-ireland","15":"tag-us-tariffs"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115950236725574427","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/301334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=301334"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/301334\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/301335"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=301334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=301334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=301334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}