Dear Commons Community,
President Trump’s former White House Communications Director Anthony Scaramucci is making the rounds on the talk shows and is the latest Wall Street name to issue a dire warning on the markets should Warren ascend to the White House. In fact, ‘The Mooch’ is making a more aggressive call than many of his peers up and down Wall Street. As reported by Yahoo News.
“Well, I think she would halve the markets,” Scaramucci said on Yahoo Finance’s On the Move when asked about Warren’s potential market impact. “Just don’t go by me, go by Lee Cooperman and Paul Tudor Jones. The reason why the market is up is because we had a 35% corporate tax go down to 21% and propelled about a 45% to 50% move in the markets. She [Warren] is talking about reversing all of that and then a wealth tax.”
Recently, investing legend Paul Tudor Jones said the stock market could plunge 25% if Warren wins. Billionaire investor Leon Cooperman also said in early October the markets could drop by 25% amidst a Warren win.
Cooperman has since waged a public battle on Warren, who questioned his efforts to improve society on Twitter. Cooperman is largely seen as one of the more charitable top figures on Wall Street.
Pick your poison as to why Warren could be bad for markets.
To Scaramucci’s point, Warren has made taxing the wealthy and pushing an expensive Medicare for All health care plan, the foundation of her climb to the top of the Democratic primary polls.
Meanwhile, Warren’s plans to deal with China trade imbalances could be equally as destabilizing for the U.S. economy and asset markets. Some on Wall Street think a President Warren could be tougher on China than Trump.
“They [institutional investors] are very worried,” former Trump administration official Stephen Pavlick told Yahoo Finance’s The First Trade.
This is a dilemma for the Democrats. Their first priority in 2020 has to be to beat Trump. They have to put forward a candidate who has a broad appeal. Elizabeth Warren is not likely that candidate.