While we await the State Of The Union on Tuesday as well as Feb. 15th deadline on the House bill for border wall funding, it appears the Democrats are lining up their new target.
Wall Street appears to be in the cross hairs of more than the Sen. Elizabeth Warren, Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez.
On Sunday Sen. Chuck Schumer and Sanders penned an Op-Ed in the NY Times suggesting that corporate stock buybacks need to curtailed as firms have changed to be solely focused on shareholder value at the detriment of workers.
The opinion piece cited this statistic without any attribution.
Between 2008 and 2017, 466 of the S&P 500 companies spent around $4 trillion on stock buybacks, equal to 53 percent of profits. Another 30 percent of corporate profits went to dividends. When more than 80 percent of corporate profits go to buybacks and dividends, there is reason to be concerned.
I believe this is significant that Schumer, who has bankers as his top supporters, comes out against the hands that feed him. It appears the democrats are searching for a new cause that can resonate with American people.
This marks an important change with the liberal left. Of course it has more gravitas than Ocasio-Cortez slamming Wall Street with uninformed rhetoric.
I’m more interested to see if this gets any traction with the Limousine Liberals in New York, Chicago and Los Angeles, who have profited from these share buybacks in their portfolios.
So looking into my crystal ball, are the Democrats about to cave on the wall and will move to Wall Street as its next cause?