Wall Street Warms Up to Warren, Who Sees A Crash Coming

Say Contributor

When Senator Elizabeth Warren announced her Presidential run earlier this year, it took time for her to catch on. But after introducing plan after plan, Warren began winning people over. Surprisingly, she’s even beginning to win the respect of Wall Street. A Little Respect Warren would not be the Street’s first, second or third pick. (Those would be former Vice President Joe Biden, Senator Kamala Harris and Mayor Pete Buttigieg.) But increasingly Wall Street people are coming to the conclusion that, sure, they can live with the idea of President Warren. Gonna Regulate It’s easy to understand why Warren ruffles financial feathers, as she’s called for tough regulation of the industry after the 2008 crash, and then created the Consumer Financial Protection Bureau. She’s already called for a Wealth Tax to help alleviate economic inequality and recently unveiled the Stop Wall Street Looting Act of 2019 — which aims to reform the private equity industry and the way companies are bought and sold, giving more protection to workers. A few years ago some Wall Street donors said that would not donate to Hilary Clinton’s campaign if Warren was named her running mate, but Warren’s deep knowledge of the financial industry (which she studied as a Harvard professor) and her history of being right about things like the Subprime mortgage bubble has won her respect. It helps that she’s seen as less scary to the Street than either Senator Bernie Sanders or President Trump. Looking Ahead While Warren should have a lot to feel good about, she’s worried about an impending economic crash, theorizing that households and companies are at record levels of debt, leaving the economy vulnerable to shocks, such as the trade war with China. But as ever, she has a plan for that. -Michael Tedder Photo: Elizabeth Frantz/REUTERS