Heres something you dont see on Wikipedia every day
Its all great theater, but pointless in the final analysis: Trump will appoint a permanent successor, who can win confirmation with a simple majority in the Senate.
[Missing from the mainstream financial medias coverage is this context: Cordrays term didnt expire till next July. If he was serious about manning the ramparts against Trumps deregulation steamroller, he could have stuck it out till the last possible moment. But Cordray evidently places a higher priority on running for governor of Ohio next year.]
Its no secret that Trumps economic agenda is likely to help the U.S. financial industry, says our income specialist Zach Scheidt stepping back to examine the bigger picture.
Not only is Trump planning to cut corporate taxes (helping banks keep a larger portion of their earnings and giving banks corporate clients more money to spend), but Trump has also been a very big proponent of less regulation for the mega-banks.
I have mixed feelings about some of these changes. While I agree that unbridled profit-seeking in the financial sector helped to create a toxic situation for the global economy in 2008, I also believe that too much regulation can stifle growth and keep banks from lending capital that would actually help our economy grow.
There needs to be a balance between giving banks freedom to lend capital to good businesses and individuals in a way that stimulates growth as well as regulation against situations that encourage predatory lending and excessive risk taking.
Thank goodness its not my job to figure out exactly where that balance should lie. Instead, its my job to help you profit from market opportunities as regulators and legislators continue to adjust the market that businesses operate in.
Regards,
Dave Gonigam
forThe Daily Reckoning
