Are the Dems about to cave on the wall and move to Wall Street

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?

Advertisements

Random thoughts on job numbers, Super Bowl

Here’s some random thoughts on today’s news.

January’s jobs numbers blow away estimates. New jobs at 304K vs. 165K estimate with average hourly earnings rising 3.2% in line with estimates.

Labor Department says unemployment rate ticked up to 4.0% on the government shutdown.

Look for stocks to soar as job growth gains while the Fed is dovish on rate rise.


Why is now a Super Bowl week tradition that news comes out about people being arrested for human sex trafficking at the site of the game? The last four years or so I have seen these stories.

It’s disturbing on so many levels because it’s not limited to just adult women being imported. Disgusting.


Democratic presidential hopeful Sen. Elizabeth Warren called out Sears/Kmart owner Eddie Lampert for what he has done to the once iconic retail chain.

The Massachusetts senator wants the billionaire hedgie to answer eight questions by Feb. 14 about his plan to buy Sears out of bankruptcy.

Now of course Warren is grandstanding, since Lampert is not compelled to answer to Warren about anything. And of course Warren is so out of touch since the federal bankruptcy court in White Plains, NY is likely to decide the fate of the retailer on Feb. 4.

While Warren says she is sticking up for the workers, if Lampert does not take control again of the retailer, then the creditors will liquidate the chain and no one will be working.

But don’t let that business mumbo-jumbo stop Warren from pounding the table for a cheap sound bite.


This is for some of my new readers. Deutsche Bank is teetering on the brink of a huge reorganization in order to wind it down.

Take a look at this award-winning video I did on this long-time troubled financial firm.