Yesterdays News 10/19

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Monte Mader (1:00)

Hello everybody and welcome to Yesterday's News, Recovery Yesterday's News. In about 15 to 20 minutes, the goal of these videos is to help you stay informed and a little less overwhelmed. You can tell I'm in a different location. I'm in the airport. If you're watching this on video, I will be using my regular mic but not my light. While my voice is not disruptive to people around me, that light probably would be.

I'm doing this right before I head to my birthday trip to Scotland. As a reminder, Yesterday's News will not be every day. It will be at least 3 days a week. I'm shooting for Monday, Wednesday, Friday. Tuesday is my birthday so I'll be taking that day off. But I will still be getting you this information, especially as it relates to midterms since we are just a couple of weeks out. October 19th, 1987, Black Monday. The Dow Jones Industrial Average fell 508 points, 22.6% in a single session, nearly twice the worst day of 1929 and still the largest one-day percentage loss in history. Hong Kong fell 45% that week. Australia, where it was already Tuesday, lost more than 40 Nobody had died, there was no bank failure, no war had started. The cause was machines, what was called portfolio insurance, an automated strategy that sold stock futures as prices dropped, which pushed prices down and triggered more selling, a loop that the humans hadn't designed to run that fast, so the Fed flooded the system with cash the next morning and exchanges invented circuit breakers that could make sure that didn't happen in that way again.

39 years later, bankruptcies are up 11%.

Diesel is at a record high. The president has frozen sanctions on Russia to study their effect on, quote, the global economy. And on Saturday, an automated system at Metta flagged high-frequency activity, well, according to them, and switched off the No Kings account, both on Instagram and Facebook, as the protest was happening. The lesson of 1987 was that a system built to react faster than people think will eventually do something that gets out of hand. So Trump is waiving the Russia sanctions he signed into law last month, two days before they took effect. Rubio said he needs up to 60 days to think. The Lindsey O'Graham sanctioning Russia and Iran Act passed the Senate 86 to 11 in the House, 262 to 159 was signed by the president on September 18th, two months after the death of the senator it's named for. It authorized sanctions on Putin's cabinet and intelligence chiefs and tariffs up to 100 percent on the countries that buy the most Russian energy. Remember that last week he's suggesting that we buy that Russian energy.

Chiefly China and India were the intended targets of this. The measures were taken to effect October 18th. So as of this recording today, late Thursday, the president signed an executive order invoking the national law's national interest waiver and suspended all of it. On Saturday, Rubio explained that the president wants up to 60 days to analyze what imposing both sanctions and tariffs will mean to the global economy and the US economy. Sixty days from Friday is December 15th, and of course, the election is November 3rd. Zelensky called the waiver wrong and said it only helps the Russians, which has been pretty indicative of what the administration's been doing the last week or so. Foreign Minister Andrei Sebeha said the indecisiveness sends the wrong signal to the aggressors and only prolongs the war. Kirill Dmitriev, Putin's envoy, called it a truly important and truly historic moment. Republican and Democratic senators who voted for the law objected. The president who asked Congress for the authority used it nine days after agreeing to buy Russian diesel to make sure it would not be used. Section 115 of the Graham Act lets the president waive its provisions if he certifies to Congress that doing so is in national interest. Congress wrote that clause because every sanction law has one. It did not expect the first use to be a blanket suspension right before it starts.