Markets here and around the world are convulsing. At the time of this writing (Monday morning) all three markets are nearing bear market territory.

Japan’s market crashes overnight and commodity prices are tanking with the biggest fall in two decades.

Whether this is a temporary blip or the start of a crash is indeterminable right now.

But what is knowable is that nearly every policy out of Washington is bearish. We’ve been saying this for a long time. Deficit spending is now $2 trillion annually. The budget is now $7 trillion. Regulations are tumbling out of the Biden administration at a record pace.

And we have a new presidential nominee who is even more anti-business than Biden. Kamala has been rising in the polls over the past week.  Trump’s odds of winning fell from 61% to 51% over the past two weeks.

We’ve mentioned before that there has been an apparent relationship between Trump’s odds of winning and stock market performance.

There are always many reasons for stocks to fall. But Scott Bessent of Key Square is calling this a Kamala Krash. He may be right.