Markets are amoral and won't complain about autocratic behaviour if it produces economic growth.
SAT, OCT 05, 2019 - 5:50 AM
WALL Street has long existed as a parallel universe, where leaders cast by critics in the media as autocratic villains can be feted as heroes if their actions bode well for the economy.
Lately, this split has reached new extremes.
In the critics' view, we live in an increasingly illiberal age, populated by dangerously erratic strongmen. Leading examples include President Jair Bolsonaro of Brazil, who at the United Nations defiantly defended his government against charges that it is turning a blind eye as the Amazon burns; President Abdel Fattah el-Sisi of Egypt, whose tough, military-backed regime has been the target of protests over the past week; and Prince Mohammed bin Salman of Saudi Arabia, widely reviled for the assassination of the journalist Jamal Khashoggi by Saudi operatives.
Yet global investors view the same trio as promising economic reformers, following a mainstream playbook that could have been written (indeed is sometimes written) by analysts at the International Monetary Fund (IMF).
Markets reward them accordingly. For much of their recent tenures, Brazil under Mr Bolsonaro and Saudi Arabia under Prince Mohammed have all ranked among the world's hottest stock markets. Until this week, this year's top-performing market was Egypt.
More:
https://www.businesstimes.com.sg/opinion/why-wall-street-loves-strongmen
at140
(6,110 posts)people are fat and happy with their 401-k's. But danger lies ahead.
I am very close to liquidating my stock portfolio, and hold the nose and pay the capital gains tax which will kill me. This market has been held up by low interest rates and the obscene tax cut to corporations which was insanely high 40%. What did the middle class get? Just a bone.
empedocles
(15,751 posts)the wealthy are promised more wealth no matter what.
MiniprotesterTodd
(38 posts)The Trump/GOP tax scam delivered 83% of the cash to the 1% and corporations. Todays GOP is made up of #CORPservatives who are in servitude to those corporations and billionaires.
To break the cycle, we need to pass HR1, the campaign finance and election reform bill sent from the House to die on McConnell's desk. If he wont bring it to the Senate floor, lets make every single Democratic candidate bring up this fact, and how the Senate Majority Leader chooses NOT to allow actual democracy in America.