February 11, 2020

Why Wall Street isnt freaking out about Bernie Sanders
If you're a fervent Bernie Sanders supporter who thinks America is finally ready for a political and economic revolution, take a breath and consider: Why isn't Bernie's steady rise totally freaking out Wall Street? Does Big Money know something you don't?Think about it: Voting starts in the New Hampshire primary today, and the self-described Democratic socialist is arguably now in the best position to win the Democratic presidential nomination. Head-to-head polls consistently show him defeating President Trump. A Quinnipiac poll out yesterday has Sanders beating Trump by a comfortable eight points.And yet the stock market keeps climbing. The S&P 500 is up nearly 15 percent over the past six months, gains that come after an already lengthy bull market run. Stocks barreled right though that Quinnipiac poll when it was released.Pity those poor, oblivious bankers, right? Spare a single pang of sympathy for them. Don't they know the Bernie Bros are coming for their loot? The early days of the Sanders presidency may not be exactly like those scenes in The Dark Knight Rises when the populist mob drags wealthy Gothamites from their Upper East Side apartments. But once Bernie's big wealth taxes hit and he smashes the megabanks, life in Manhattan might feel pretty different to the private equity guys and hedgies.Of course, that's not how Big Money sees things playing out. "A whopping 80-90 percent of participants at our client conferences thought that President Trump would win re-election in November," Goldman Sachs noted in a recent report. With the unemployment rate at a half-century low and economic confidence at a 20-year high, it seems inconceivable to many investors that voters wouldn't return Trump to office. For this crowd, prediction markets are as important, if not more so, than polling. And they show Trump as the favorite over the Democrats, with the exception of Mike Bloomberg. And nobody on Wall Street is going to panic if the next president is a guy who got rich selling data and software to Wall Street.So folks keep on investing. Four more years of Trump means four more years of an overall business-friendly economic agenda of low taxes and light regulation. Even Trump's trade protectionism isn't super scary since he seems willing to retreat every time stocks flutter a bit. Both Trump and Wall Street share a critical common interest: They want the Dow industrials to keep on climbing.Then again, most of these out-of-touch elitists probably thought Hillary Clinton would sweep to victory over Trump. Will they ever learn? Okay, fine. Let's assume America feels enough of the Bern to send the Vermont senator to the White House. Even then, Wall Street might not be too worried. "U.S. political institutions would still make dramatic policy changes unlikely if Sanders did become president," JPMorgan told its clients in a recent note. "We put the probability of major changes like Medicare-for-all or a wealth tax at less than 5 percent."Not only does Sanders need to pull off a stunning victory, but he probably needs Democrats controlling both houses of Congress. And even that wouldn't be enough for Sanders' most radical ideas to become law. As JPMorgan adds, "For Medicare-for-all or a wealth tax to become reality, it would require Democrats to sweep the presidency and both houses of Congress, and it would require them to assemble either a large-enough majority to avoid the Senate filibuster or a committed-enough majority to triumph in a bare-knuckled procedural fight." All that heavy lifting, then, to pass a health-care proposal that's become more unpopular the more people hear about it. Good luck. In the end, people might like Bernie more than they like Bernie-nomics.Or imagine if President Sanders were able to persuade congressional Democrats to go through with his $5 trillion in tax increases, including those on wealth and Wall Street. That would still leave Wall Street to cast its own de facto vote, just it did back in 2008 when Congress failed to approve the Bush administration's bank bailout plan. After the stock market tanked in response, Congress reversed course and passed the plan. A plummeting Dow might give Congress second thoughts about Bernie's war on wealth. In the end, Wall Street doubts the real-world application of Bernie's democratic socialism would look much different than the more pragmatic policies of Joe Biden or Amy Klobuchar.A people-powered revolution? The smart money would tell Sanders supporters it's a bad bet.Want more essential commentary and analysis like this delivered straight to your inbox? Sign up for The Week's "Today's best articles" newsletter here.More stories from theweek.com Elizabeth Warren didn't waste time before conceding in New Hampshire President Bloomberg? Colorado Sen. Michael Bennet exiting Democratic presidential race
Related Stories
Latest News
Top news around the world
Coronavirus Disease

Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus.

Most people infected with the COVID-19 virus will experience mild to moderate respiratory illness and recover without requiring special treatment. Older people, and those with underlying medical problems like cardiovascular disease, diabetes, chronic respiratory disease, and cancer are more likely to develop serious illness.

Around the World

Celebrity News

> Latest News in Media

Watch It
Tracy Morgan Hands Out Turkeys to Long Line of New Yorkers | TMZ
November 24, 2020
BW7UB1bkvxI
Chris Hemsworth Working On Body, Chris Pratt Pokes Fun | TMZ TV
November 24, 2020
2giqjWteb4Y
Kamala, Jill Should Pick American Designer For Inaugural Ball Dress, Michael Costello Says
November 22, 2020
cGsraoPqUzM
Dr. Phil's Trunk Troubles, "Bachelorette" Pillow Fight & Viral Lap Dance
November 25, 2020
JFIYEXAfWfE
Necessary Realness: Mornings With Morgan Stewart | E! News
November 25, 2020
gbBS9tYdqis
Kim & Kylie's Thirst Traps, "Bachelor" Teaser & Kate Beckin-Fail
November 24, 2020
EygyjRkU6pk
'Time' Director Garrett Bradley on Covering Incarceration, Why Black Family Archives Are Important
November 24, 2020
m7j3n7dPFOI
PinkSweat$ - Live from My Den
November 20, 2020
1UUzo53kpbY
'Saved By the Bell' Stars Show How Well They Know the Sitcom
November 18, 2020
3GLE5nZshtU
‘Drew Barrymore Show’ slammed after marrying teacher and his alleged former student | Page Six News
November 25, 2020
6U68yVRt0dk
Megan Fox's Brian Austin Green drama amid MGK relationship | Page Six Celebrity News
November 24, 2020
oaBEbeuVnH4
Pete Davidson to lead all-star version of ‘It’s a Wonderful Life’ | Page Six Celebrity News
November 24, 2020
cACtRtmRimY
TV Schedule
Late Night Show
Watch the latest shows of U.S. top comedians

Sports

Latest sport results, news, videos, interviews and comments
Latest Events
25
Nov
ASIAN CHAMPIONS LEAGUE: Group Stage
Guangzhou Evergrande - Vissel Kobe
25
Nov
ASIAN CHAMPIONS LEAGUE: Group Stage
Shanghai SIPG - Yokohama F. Marinos
25
Nov
ASIAN CHAMPIONS LEAGUE: Group Stage
Jeonbuk Motors - Sydney FC
24
Nov
ENGLAND: Championship
QPR - Rotherham
24
Nov
ENGLAND: Championship
Stoke City - Norwich City
24
Nov
ENGLAND: Championship
Bournemouth - Nottingham Forest
24
Nov
ENGLAND: Championship
Preston NE - Blackburn
24
Nov
ENGLAND: Championship
Luton - Birmingham
24
Nov
ENGLAND: Championship
Wycombe Wanderers - Huddersfield
24
Nov
ENGLAND: Championship
Barnsley - Brentford
23
Nov
ENGLAND: Premier League
Wolves - Southampton
23
Nov
SPAIN: La Liga
Athletic Bilbao - Real Betis
23
Nov
ENGLAND: Premier League
Burnley - Crystal Palace
22
Nov
ITALY: Serie A
Napoli - AC Milan
22
Nov
ENGLAND: Premier League
Liverpool - Leicester City
22
Nov
ENGLAND: Premier League
Leeds - Arsenal
22
Nov
ITALY: Serie A
Inter Milan - Torino
22
Nov
ITALY: Serie A
Roma - Parma
22
Nov
GERMANY: Bundesliga
Koln - Union Berlin
22
Nov
SPAIN: La Liga
Alaves - Valencia
22
Nov
ENGLAND: Premier League
Sheffield United - West Ham United
22
Nov
ITALY: Serie A
Udinese - Genoa
22
Nov
SPAIN: La Liga
Granada CF - Real Valladolid
22
Nov
ITALY: Serie A
Verona - Sassuolo
22
Nov
SPAIN: La Liga
Cadiz - Real Sociedad
22
Nov
ITALY: Serie A
Sampdoria - Bologna
22
Nov
GERMANY: Bundesliga
SC Freiburg - Mainz
22
Nov
SPAIN: La Liga
Eibar - Getafe
22
Nov
ENGLAND: Premier League
Fulham - Everton
22
Nov
ITALY: Serie A
Fiorentina - Benevento
21
Nov
SPAIN: La Liga
Atletico Madrid - Barcelona
21
Nov
ENGLAND: Premier League
Tottenham Hotspur - Manchester City
21
Nov
GERMANY: Bundesliga
Hertha Berlin - Borussia Dortmund
21
Nov
GERMANY: Bundesliga
Bayern Munich - Werder Bremen
21
Nov
ENGLAND: Premier League
Newcastle United - Chelsea
21
Nov
ENGLAND: Premier League
Manchester United - West Bromwich Albion
21
Nov
ITALY: Serie A
Juventus - Cagliari
21
Nov
SPAIN: La Liga
Villarreal - Real Madrid
21
Nov
GERMANY: Bundesliga
Eintracht Frankfurt - RB Leipzig
21
Nov
ENGLAND: Championship
Stoke City - Huddersfield
21
Nov
ENGLAND: Championship
Preston NE - Sheffield Wednesday
21
Nov
ENGLAND: Championship
Millwall - Cardiff City
21
Nov
SPAIN: La Liga
Sevilla - Celta Vigo
21
Nov
ITALY: Serie A
Spezia - Atalanta
17
Nov
UEFA NATIONS LEAGUE A: Group Stage
Spain - Germany
14
Nov
UEFA NATIONS LEAGUE A: Group Stage
Germany - Ukraine
08
Nov
ENGLAND: Premier League
Manchester City - Liverpool
08
Nov
ENGLAND: Premier League
Arsenal - Aston Villa
08
Nov
SPAIN: La Liga
Valencia - Real Madrid
08
Nov
ITALY: Serie A
AC Milan - Verona
08
Nov
ITALY: Serie A
Bologna - Napoli
08
Nov
ITALY: Serie A
Genoa - Roma
08
Nov
ITALY: Serie A
Atalanta - Inter Milan
Find us on Instagram
at @feedimo to stay up to date with the latest.
Featured Video You Might Like
zWJ3MxW_HWA L1eLanNeZKg i1XRgbyUtOo -g9Qziqbif8 0vmRhiLHE2U JFCZUoa6MYE UfN5PCF5EUo 2PV55f3-UAg W3y9zuI_F64 -7qCxIccihU pQ9gcOoH9R8 g5MRDEXRk4k
Copyright © 2020 Feedimo. All Rights Reserved.