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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsGoldman Sachs: A Democratic sweep would mean faster economic recovery
https://www.cnn.com/2020/10/06/business/economy-election-blue-wave-goldman-sachs/index.html
New York (CNN Business)President Donald Trump is once again warning voters that Democrats would "shut our economy and jobs down" if they win in November.
Goldman Sachs is telling its clients the exact opposite.
Just hours after Trump's all-caps Monday morning tweet predicting economic disaster, Goldman economists pointed out that polls "suggest a 'blue wave' in which Democrats gain unified control of Washington is becoming more likely" -- and they're not suggesting investors dump stocks.
In fact, "all else equal, such a blue wave would likely prompt us to upgrade our forecasts," Goldman Sachs chief economist Jan Hatzius wrote in a Monday report.
It's true that if Democrats sweep into power early next year, it would likely translate to higher taxes and regulation. Such a reversal from the Trump agenda could eat into corporate profits and the earnings for affluent families.
But Joe Biden is also promising a bonanza of government spending that, coupled with extremely low interest rates, would likely speed up the economy.
Goldman Sachs wrote that a blue wave would "sharply raise the probability" of a fiscal stimulus package of at least $2 trillion shortly after the January 20 inauguration. The bank also cited Biden's longer-term spending plans on infrastructure, climate, health care and education.
New York (CNN Business)President Donald Trump is once again warning voters that Democrats would "shut our economy and jobs down" if they win in November.
Goldman Sachs is telling its clients the exact opposite.
Just hours after Trump's all-caps Monday morning tweet predicting economic disaster, Goldman economists pointed out that polls "suggest a 'blue wave' in which Democrats gain unified control of Washington is becoming more likely" -- and they're not suggesting investors dump stocks.
In fact, "all else equal, such a blue wave would likely prompt us to upgrade our forecasts," Goldman Sachs chief economist Jan Hatzius wrote in a Monday report.
It's true that if Democrats sweep into power early next year, it would likely translate to higher taxes and regulation. Such a reversal from the Trump agenda could eat into corporate profits and the earnings for affluent families.
But Joe Biden is also promising a bonanza of government spending that, coupled with extremely low interest rates, would likely speed up the economy.
Goldman Sachs wrote that a blue wave would "sharply raise the probability" of a fiscal stimulus package of at least $2 trillion shortly after the January 20 inauguration. The bank also cited Biden's longer-term spending plans on infrastructure, climate, health care and education.
Republicans destroy the economy and Democrats rebuild it. Rinse and repeat. Lets not forget the trillions that were given away in tax cuts and stimulus without actually helping much.
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Goldman Sachs: A Democratic sweep would mean faster economic recovery (Original Post)
IronLionZion
Oct 2020
OP
lagomorph777
(30,613 posts)1. Golden Sacks is experienced in these matters; I think they are spot-on.
spooky3
(34,445 posts)2. Wait! No! Goldman Sachs is evil!
I think they are correct here that a Dem wave will be good for the economy. I think they are WRONG that it means more spending. Biden et al. will have to dig us out of the hole that Trump et al put us in.
Lucky Luciano
(11,254 posts)3. Infrastructure spending would be likely under Biden.
CrispyQ
(36,461 posts)4. From Goldman Sachs' mouth to the one percents' ears!
DUMP TRUMP
IronLionZion
(45,433 posts)5. We need the Senate too
that's the key part to this whole strategy so we can pass Biden's regulations and policies while overcoming GOP obstruction.
Wounded Bear
(58,648 posts)6. It usually does...Repubs tank the economy and screw things up.
Dems come in and clean up.
Lather, rinse, repeat.
NewJeffCT
(56,828 posts)7. Haven't a slew of Goldman people been in Donny's cabinet?
Mnuchin for one
Steve Bannon for another
pecosbob
(7,538 posts)8. I don't think much of Deutsche Bank or Bear Stearns prospects under a Democratic administration
One would like to think we won't repeat the eighties capitulation to Wall Street.
IronLionZion
(45,433 posts)9. Bear Stearns ceased to exist a decade ago
Deutsche Bank was lending Russian money to Donny dipshit
pecosbob
(7,538 posts)10. Didn't know...thank you