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Legendary linguist Noam Chomsky has a warning for Donald Trump’s supporters; the Trump bump in the market is waning.
“Anti-establishment is kind of a joke,” Chomsky concluded. “Take a look at Trump and take a look at who’s appointed for the cabinet.”
Treasury Secretary Steve Mnuchin, for example, “comes from Goldman Sachs, a major investment firm where he was for almost 20 years,” Chomsky observed.
“What’s anti-establishment?” he asked. “This [cabinet] is drawing from the billionaire class, largely financial institutions, and military and so on; in fact, take a look at the stock market, that tells you how anti-establishment he is.”
“As soon as Trump was elected, and since, stock values in financial institutions escalated to the sky,” he said. Investors are “delighted he’s going to eliminate regulations, let them make more profit; of course, it’ll lead to another crash, but that’s somebody else’s problem. The taxpayers will take care of that.”
Chomsky is not the only one predicting a market crash. Even the right-leaning Wall Street Journal reported Thursday that “a revival in fortunes for hedge funds that trade across global assets, sparked by Donald Trump’s election victory, has hit trouble.”
“Wall Street hailed Trump’s triumph on November 8 as the dawn of a pro-business, growth-spurring revolution,” Shawn Tully, Fortune Magazine’s senior editor-at-large, explained earlier this week.
Vowing to roll back regulations, slash taxes and invest big in infrastructure, Trump created a rare post-election bull market.
However, Tully also warned that “given the high levels where stock prices stood pre-election, and the astounding run-up since then, investors have raised the bar for corporate performance so outrageously high that even if Trump does deliver on what he has promised, rich returns may still be out of reach.”