By James Kwak
Remember when Steve Schwarzman said that taxing carried interest was “like when Hitler invaded Poland in 1939”? Or when Lloyd Blankfein said he was doing “God’s work”? Apparently, titans of finance can’t stop themselves from giving good copy. The latest is in Max Abelson’s Bloomberg article in Bloomberg on Wall Street’s search for a Republican presidential candidate who will wave their flag: low individual taxes and a rollback of financial regulation. John Taft, U.S. CEO of RBC Wealth Management, “likened his fear for the country to ‘hiding under my desk during air-raid drills because of the Cuban missile crisis,’ when ‘literally the future of humanity hung in the balance,'” before beginning a suggestion, “If I were God.”
More seriously, the financial sector expects to be able to choose the next Republican presidential nominee. In the words of one political strategist, with Chris Christie on the rocks, “The establishment is now looking for another favorite. . . . And by the establishment, I mean Wall Street.” At the moment, the big money is desperate enough to be looking at fringe candidates like Rand Paul, Ted Cruz, and Marco Rubio (although what they most long for is the third coming of Bush). Basically, there are huge piles of cash looking for a friendly political home, and the level of hysteria is likely to surpass what we saw in 2012. We should at least get some entertaining quotes out of it.