John Paulson, the hedge fund billionaire who made a fortune betting towards the housing market in 2007, has threatened to drag his cash from the market if Kamala Harris wins the election, boldly claiming that Donald “I simply don’t desire a poor particular person” Trump would assist the center class and Harris would trigger a recession.
Chatting with Fox Enterprise on Tuesday, Paulson—a significant Trump backer since 2016—said, “If Harris was elected, I’d pull my cash from the market. I’d go into money and I’d go into gold, as a result of I believe the uncertainty relating to the plans they outlined would create lots of uncertainty within the markets and certain decrease markets.” He additionally said: “I’d be very involved if Harris is elected and pursues the tax plans and different financial plans that she articulated. In the event that they do implement a 25% tax on unrealized good points, that may trigger mass promoting of virtually the whole lot—shares, bonds, properties, artwork. I believe it might end in a crash within the markets and a reasonably fast recession.” On the flip facet, after predicting the election would come all the way down to “who’s gonna do higher for the center class,” Paulson claimed, “Whenever you have a look at the information, the Trump insurance policies come out higher for the typical American.”
It’s a big-if-true declare! However what are the ideas of people that aren’t Trump mega-donors on the subject of the economic system underneath Harris versus underneath the ex-president?
For one factor, Goldman Sachs said earlier this month {that a} Harris win would supply an even bigger financial enhance than a Trump reelection would. For one more, economists have stated Trump’s tariff plan would cost Americans 1000’s of {dollars} a 12 months, successful that may be most acutely felt by the center class. Economists have additionally stated that tariff plans floated by Trump would make the lives of American households “way more costly” and put “tens of millions of individuals out of labor.” Different phrases used to explain Trump’s idea for an across-the-board 10% tariff embrace “lunacy,” “a catastrophe,” and “very, very unhealthy.”
After all, it’s not laborious to see why Paulson is pushing laborious for a second Trump time period, on condition that the ex-president’s signature tax cuts disproportionately benefited the richest of the rich and led to US billionaires paying a tax rate lower than that of working families. Naturally, Trump has promised to maintain taxes low for the wealthiest individuals within the nation—and made such a vow at a $50 million fundraiser hosted by, look ahead to it, John Paulson.
Not surprisingly, Trump has reportedly floated Paulson as a possible Treasury secretary in a second administration.
