The blog has numerous factual errors: 1. Nobody - nobody - blamed the contraction of trade on tariff and non-tariff measures (these, of course, increased in prevalence as an attempt to address popular concerns about rising unemployment). 2. Others may have pointed out that the decline in trade is larger than the decline in U.S. GDP; does this make any sense to even point this out? Has absolutely no economic meaning. Of course trade can rise or fall faster than GDP. 3. Last but bot least, the trade finance channel is by now clearly shown to have had a negligible impact on trade. Trade collapsed as demand and prospects for investment collapsed. Firms continued to manufacture with available inventories, as manufacturing ground to a halt more slowly than trade. Given the predictions of an armageddon in late 2008, it is not hard to see why companies would not want to have a ship full of cars sent to a customer who two months down the road may not be able to pay.