Wall Street Sees the Light

“Most of Wall Street, it seems, is happily preparing for a Joe Biden victory in November. “The majority of my friends on Wall Street would like to see Trump lose to Biden,” one very senior investment banker tells me. “They’re saying, ‘We’d like to see Biden crush Trump.’” And that is without knowing exactly what Biden and the 117th Congress—to be elected on November 3—will do about such important economic topics such as the corporate tax rate, the capital gains tax rate, or taxes on the wealthiest Americans. The consensus on Wall Street seems to be that a Biden presidency will mean an overhaul of the Trump 2018 tax law. That means higher tax rates for the very wealthy, for corporations—likely an increase in the tax rate to 28%, from 21%—and on capital gains.”

““THEY’RE SAYING, ‘WE’D LIKE TO SEE BIDEN CRUSH TRUMP’”: FOR SOME ON WALL STREET BEATING TRUMP IS MORE IMPORTANT THAN MONEY”, Vanity Fair, William D. Cohan, July 9, 2020.

OMG, thank you! Some on Wall Street get it. This is really great news. Yes, they understand that things cannot continue as they have with the constant tax cuts. They understand that they are going to have to give back a little if they don’t want everything to be swept away.

We need to change capitalism, but we don’t need to throw it away.

But if things don’t change, the young ones will push for changes that may end up being too extreme. Some are already attracted to socialism and communism. If the socialism is like the Denmark/Norway/Sweden kind (those countries merge in my mind; they may have different government systems) where the socialism is combined with the capitalism (keeping the best of both), then we should be safe because that combination appears to be working for the greatest number of people as opposed to working for a small sliver of the population. But a move towards total communism, like Russia had, or a socialism like Venezuela, that’s bad news. They haven’t been too articulate on what they are looking for.

The coronavirus pandemic is really highlighting the problems of our unbridled free markets. There is too much inequity in our society.

“…what has been revealed by the COVID pandemic and the faltering economy is “income inequality, health inequality, and racial inequality…”

““THEY’RE SAYING, ‘WE’D LIKE TO SEE BIDEN CRUSH TRUMP’”: FOR SOME ON WALL STREET BEATING TRUMP IS MORE IMPORTANT THAN MONEY”, Vanity Fair, William D. Cohan, July 9, 2020.

And here’s the thing, ALL Republicans need to go (well, all of the Republican Senators running in this election). They are the ones who support the insanity that is going on and have been supporting the kind of capitalism we have now. At this point, I don’t think the Republican congressmen understand the damage that our current shareholder/free market philosophy has caused. And to be frank, I think some on Wall Street still don’t wholeheartedly believe the kind of capitalism we have is a huge part of the problem; they just recognize that there are serious inequities in our country which if not addressed will lead to the whole “system” sweeping away.

From here on out, until November and then maybe onto January, it’s going to be an dreadful summer.