The Irony Is That Both Wall Street And Silicon Valley Went All-In To Get Biden Elected

More importantly for markets, US President Biden launched another stimulus package.

No, not the USD1.9 trillion bill that already went through; and not the USD2.25 trillion infrastructure bill than redefines social spending as infrastructure, and is planned to be funded by higher corporate taxes; instead, a new USD1.5 trillion spending bill aimed at helping American families to be funded by raising capital gains tax from 23.8% to 39.6% for those earning more than USD1 million, alongside a matching top marginal income tax rate of 39.6%. The 3.8% tax on investment income to fund Obamacare would also stay, meaning a top rate of 43.4% for some.

Obviously, US markets sold off anyway, and there was a rush for safety as US 10-year Treasury yields dropped below 1.54%. The message which echoed in the press and social media from Wall Street to Silicon Valley was clear: "Reflation, please: but not redistribution!".

The irony is that both Wall Street and Silicon Valley went all-in to get President Biden elected, and two elections in a row have seen the guy they put in the White House lead US policy in a direction they don't like at all.

Talk about putting down the Doge, making Bitcoin worth just a bit, and sending Ethereum into the ether; and again, what an irony - death via taxes, the two eternal truths Silicon Valley seems busiest trying to avoid.

Wall Street and Silicon Valley are perhaps going to have to live with the same "Disruption" - and loss of income - that US workers in most other fields have experienced at their hands for decades.

Wall Street might move to Miami to save a few percent on taxes, but can it fight the current political momentum from both Republicans AND Democrats? Silicon Valley will have a tantrum, and there may be threats to work in China instead: but ask Jack Ma about how that is working out.

https://www.zerohedge.com/markets/rabo-irony-both-wall-street-and-silicon-valley-went-all-get-biden-elected