At first glance, Clinton appears less favorable to both business and Wall Street. But it’s the opposite.
Clinton always chooses her words carefully when talking about financial firms and reforms. She gives herself a way out. “I would be willing to do X – if necessary.” Wall Street trusts Clinton will keep its best interest in mind no matter what she tells the public.
Clinton vs Trump
The Wall Street Journal reported this summer that roughly 14% of the total money donated to Clinton had come from hedge funds. Trump’s support from such groups at that time was almost non-existent. In recently leaked emails, Clinton said that people need to have both public and private positions. She proved that by saying in an October 2, 2008 interview on WNYC radio, “I think the banks of New York and our other financial institutions are probably the biggest winners in this [the Wall Street bailout during the financial crisis], which is one of the reasons why in the end, despite my serious questions about it, I supported it.”
My summary of the Clinton philosophy is “coddle the masses while cuddling the powerful.” That is acceptable to Wall Street and business. The single most important reason the former New York senator is good for business? It’s not because her policies are good for business. It’s because she’s predictable. I can take a punch—but I can take it a lot better if know where it will land and when it is coming. A Clinton presidency is a punch that corporations and markets have been expecting for months.
Markets won’t celebrate her victory, but they will sigh in relief.
For any business, knowing what to expect is priority number one. Corporate control freaks feel good when they feel in control. When you know what to expect, you can plan. You can invest, spend, hire and grow. Businesses feel in control when they believe they know what to expect. They know what she’ll say to the masses, but they also know what she’ll do in the end. Coddle then cuddle—she can play that song in her sleep.
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By Joshua I. Wilson, read the full article here.
