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Goldman Sachs and Moody’s turn away from Trump for a speeder economic recovery …

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Oh Snap!

Is Donald Trump and the Republican’s seeing the money people beginning to jump ship?

Wall Street advisors are turning to Joe Biden….

 

Donald Trump’s strength has been the economy…

Has he lost THAT also?…

What’s left?

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 isn’t the only Wall Street firm to point out the positive benefits of a blue wave.
Moody’s Analytics found that Biden’s economic proposals, if enacted, would create 7.4 million more jobs than would Trump’s. The economy would return to full employment in the second half of 2022, nearly two years earlier than under Trump’s plan, Moody’s said….
…
The prediction markets are also pointing to a blue wave, though it’s no slam dunk. A bettor on PredictIt can pay 58 cents to win $1 if Democrats win the White House, Senate and House in 2020. That’s up from 43 cents in late August.
Note…

Every four years a Democrat runs for president on a platform that includes higher taxes for the wealthy. And every four years a group of people predicts that the sky will fall if those plans are implemented. Yet every time their plans have been implemented, the sky hasn’t fallen—if anything, economic growth and business investment have been stronger under Democratic than Republican presidents.

Joe Biden’s proposals to raise taxes on households making more than $400,000 annually, and on corporations, are broadly consistent with the tax systems under the successful economies of Presidents Clinton and Obama. The Biden plan also includes a few innovations that would improve on its predecessors. It would devote revenue to an ambitious set of proposals to expand economic growth and ensure it is shared more broadly….

More from Jason Furman….

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