“Giddy”: Politico Would Like You to Know that the Plutocrats are Ecstatic Over a Biden Presidency

Well-known socialist rag and spokespuppet for the oppressed, Politico, lets us know that As Trump warns of economic disaster, Wall Street grows giddy about Biden: Many investors are betting on a Democratic sweep. But some other scenarios could create an unsettling environment for markets:

President Donald Trump loves to say that if Joe Biden wins the White House, stocks will crash, retirement accounts will vanish and an economic depression “the likes of which you’ve never seen” will engulf the nation.

But much of Wall Street is already betting on a Biden win — with a much different take on what the results will mean.

Traders in recent weeks have been piling into bets that a “blue wave” election, in which Democrats also seize the Senate, will produce an economy-juicing blast of fresh fiscal stimulus of $3 trillion or more that carries the U.S. past the coronavirus crisis and into a more normal environment for markets.

Far from panicking at the prospect of a Biden win, Wall Street CEOs, traders and investment managers now mostly say they would be fine with a change in the White House that reduces the Trump noise, lowers the threat of further trade wars and ensures a continuation of the government spending they’ve seen in recent years.

“The market is focusing on an end to the uncertainty around the Trump administration, and that in many respects is what underscores the pricing action around a possible Biden scenario and a blue wave,” said Joseph Brusuelas, chief economist at consulting firm RSM US. “Firms and investors crave stable expectations and that is how the Street is interpreting a likely Biden victory.”