Wall Street is not much of a fan of President Obama, or of Democrats in general. They’re not happy with Democrats’ calls to break up the big banks, or with the possibility (however remote) of reinstating Glass-Steagall. They don’t like hearing that they’re evil fat cats who wrecked the economy for their own gain, even though they did. Despite Wall Street’s general sentiments, though, there is a hedge fund manager who doesn’t agree.
He believes that Obama has done a great job, and thinks it’s time everyone stops bashing him.
Jim Chanos, a billionaire hedge fund manager on Wall Street, said in no uncertain terms to CNN’s Poppy Harlow, that “the strides we’ve made the last eight years are pretty amazing.”
He’s wondering what Wall Street has to complain about, because companies are raking in record profits, the stock market has reached record highs, the federal deficit has shrunk considerably, and gas prices are even down. Wall Street is doing fantastic under Obama.
So, brass tacks, why does Wall Street hate Obama then?
Simply put: he allowed tax cuts for the wealthiest among us to expire as part of the 2012 fiscal cliff deal. He’s supported regulations that help mitigate risk, but also limit profitability. He also has a major beef with the pay that investment bankers receive, too.
In short, their problem with him boils down to one thing: he won’t let them be as greedy as they want to be.
If they wreck the economy again, so be it. They’ll have theirs and screw the rest of us. Obama should not interfere with that.
CNN notes that Chanos doesn’t follow the crowd. However, he did predict Enron’s collapse, along with China’s current economic problems. Perhaps he knows what’s what because he doesn’t play the game. He also believes that the wealthier should pay more taxes, and that the carried interest exemption should disappear, because it allows people like him to pay a lower tax rate on their millions in profits.
Chanos isn’t the only billionaire that gets this. Nick Hanauer is another that gets it, he’s written letters, and hosted TED talks to that effect. Sadly, though, billionaires like Chaos, Hanauer and Warren Buffet are a rare breed. Most of them seem to want to be allowed to do what they want, when they want, how they want, without consequence or accountability. If this weren’t true, then the big banks could self-regulate, and we wouldn’t even be having a discussion about whether to reinstate Glass-Steagall, or find other ways to rein in Wall Street.
Featured image by United States Senate. Licensed under Public Domain via Commons