When Trump being bad is good

The news cycle over the weekend was dominated by multiple shades of outrage about the Republican Party’s candidate for the American presidency behaving like a complete sleazebag. Various prominent Republicans have been declaring it a terrible thing – but no, they’re wrong.

Also read: Trump could 'disrupt' Aust-US alliance

Well, wrong from a markets and economic point of view anyway. It’s a wonderful and very fine thing because it looks like this final expose of the real Donald Trump should be enough to ensure he loses the election – and that is good news for everyone. It should help steady markets that otherwise could have remained jittery right up to November 8.

Trump’s “banter” has already had an effect on the markets ahead of today’s second presidential debate. The market that reflects Trump’s presidential hopes most closely (in reverse) is the Mexican peso. It picked up one per cent to reach its best level in a month as the odds on Trump winning lengthened. I’d wager it’s also a factor in our stock market opening higher this morning.

Also read: Why Trump had to be self-funded

It is still a little disturbing that a significant proportion of likely American voters apparently didn’t mind Trump being a racist, sectarian, bullying braggart and liar, that it’s taken his braggadocios sex talk for people who should know better to finally cut him loose.

But the biggest surprise about Trump being a scumbag is that some people were surprised he is a scumbag. His persona has been screaming it forever.

There are still people who will vote for the creature and it won’t be totally safe until receives the political equivalent of a wooden stake through the heart – an overwhelming rejection by voters in four weeks.

Also read: "President Trump" would be a surprise

And there is the slight danger that if Clinton has a big lead in the polls, people might think they don’t need to vote if the weather is bad on November 8 – the equivalent of what some would-be remain voters did on the Brexit vote.

Nonetheless, assuming Hilary Clinton makes the best of it in today’s debate, we can get back to more normal concerns this week – what the NAB business conditions survey tells us about the local economy tomorrow and how the Federal Reserve is nudging closer to lifting American interest rates in December.

Michael Pascoe is one of Australia's most respected finance and economics commentators with over four decades in newspaper, radio, television and online journalism. He regularly appears on Channel 7's Sunrise and news programs and is a regular conference speaker, MC and facilitator.