The Democrats’ Leftward Lurch Isn’t Confined to Impeachment
Author: Greg Valliere
September 27, 2019
A FRIDAY RANT AFTER A VERY LONG WEEK: It’s remarkable, in our opinion, to see many top Democrats lurch sharply to the left, in what appears to be pandering to activists, especially in Iowa. We offer as evidence not just the impeachment bandwagon — but what appears to be an all-out assault on Wall Street.
HIGHLY RECOMMENDED READING: This morning’s Washington Post reports that Joe Biden, slipping badly in Iowa and New Hampshire, may join the pack in proposing a steep new tax on Wall Street transactions. And with Elizabeth Warren and Bernie Sanders supporting a “wealth tax,” Biden may propose one as well. He already is calling for much higher individual and corporate tax rates.
NOT ONLY COULD THIS CAUSE WALL STREET to back away from supporting a challenger to Trump, it may prompt many financial firms to sit out the 2020 race or actively support Trump. What a lost opportunity — the Democrats had a good chance to win support from Wall Street, and now that’s in doubt.
ON ISSUE AFTER ISSUE, Democrats would pay for huge new programs by raiding what they consider is a Wall Street piggy bank. Apparently the way to please the activist base is to demonize Wall Street firms, which of course paid back every dime — with interest — from the emergency bailout a decade ago. That gets lost in the rhetoric, aimed at young activists who have been seduced by Warren and Sanders — and Biden apparently thinks he has to join the chorus. (The moderate Sen. Michael Bennett, an opponent of such ideas, will not qualify for next month’s debate.)
JUST AS MODERATES HAVE BEEN EXCLUDED from the Republican Party, a similar purge seems to be underway among the Democrats. Nancy Pelosi didn’t want to begin impeachment proceedings; she believes this could backfire, and we agree. But the party’s vocal left wing forced her hand, so she will speed up the process, hoping for a vote before Christmas.
THAT WILL BE A MONTH BEFORE THE IOWA caucuses, which Biden is in danger of losing. He can’t win by preaching a moderate message, so he will join other candidates in pandering to left wing activists, (who are unlikely to abandon Warren).
SO A DEPRESSING TREND WILL CONTINUE: The hollowing out of the American center, with roughly 30% on the left and 30% on the right leaving the vast middle disenfranchised. We thought a year ago that Michael Bloomberg would make a first-rate president, presiding over a pragmatic, centrist agenda. But that won’t happen — the primary system won’t allow it — and the sad truth is that Bloomberg couldn’t
possibly get nominated by either party, as the center collapses.
The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.
AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), Highstreet Asset Management Inc. (Highstreet), AGF Investments America Inc. (AGFA), AGF Asset Management (Asia) Limited (AGF AM Asia) and AGF International Advisors Company Limited (AGFIA). AGFA is a registered advisor in the U.S. AGFI and Highstreet are registered as portfolio managers across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. AGF AM Asia is registered as a portfolio manager in Singapore. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
For further information, please visit AGF.com.
© 2020 AGF Management Limited. All rights reserved.
