Monday, November 14, 2016

Market reaction to Trump's nomination

So far not much!

Everyone predicted that the market would drop 100 to 200 points (the S&P 500) and in fact nothing has happened.  So far Trump has made unsurprising nomination -- his real chef of staff will be Steve Bannon, whilst Reince Piebus will be the nominal chief of staff.  For starts RP is a good friend of the GOP, whiles Bannon is a sworn enemy of Paul Ryan.

Its not clear what Trump will do on Obamacare, while the GOP wants to abolish the thing, Trump has said that he will abolish Obamacare when Congress sends him a replacement plan...it could take a while since the GOP has never moved beyond a white paper that was very short on details (it had none).

The big moves now afoot are to pass Trump's agenda as fast as possible -- there are some ways it can be done, it seems that the GOP in Congress is keen to privatize Social Security and replace Medicare with vouchers (that would increase in value at the rate of inflation while medical costs are rising at three or four times the rate of inflation.

If they also abolish the EPA, the Education Department the government could be left with basically running the military and have, overall, very few roles.

I am almost certain that Americans are not too keen on seeing Social Security privatized -- after all, it would put the money in the hands of Wall Street, that has not covered itself in glory.  They like Medicare and don't want the project terminated.  Yet the agenda of the 1% is back in business with the abolition of most of the US Federal government.

Now there is a big difference between Congress' plans and the White Houses plans -- we know that Trump has some unfinished business with many GOP senators and congressmen/women and that Trump likes his revenge!  If Trump forces the GOP to produce a new ACA law to replace the current program...it is possible that this would be a good thing.  I am far from certain that Trump has the intellect to do the work, but time will tell.

In the meantime, the Democrats got exactly what they deserves, for while Trump was hated by a large segment of the population she was despised by many democrats who decided that they had better things to do than for vote for Clinton.  The next four years should be educational for Democrats and for America's population as a whole.


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