The SIPA

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The Communist Revolution Coming to Wall Street?

Brokers better beware of the drum beat

The past two years has seen a return to somewhat normal regulations on Wall Street as Donald Trump has lifted and or modified many of the burdensome regulations strangling capital formation for much of the last 10 years. The market has responded with robust earnings, record unemployment and GDP numbers not seen since Ronald Reagan roamed the White House. However the growing chants for socialism and in some cases communism by the left should give some members of the financial community some concern. The democratic victory in the house in November was widely expected and was presumed to be a balance of power between the branches. However, the party that was always on the liberal side appears to have passed socialism and is right now passing “GO”, not collecting $200.00 and heading straight into full blown communism.

The leader of this movement has been a 29 year old congresswoman from New York who claims to be a graduate from Boston University with a degree in economics. Despite this lofty status and her proximity to the financial center of the world, Alexandria Cortez could only land a job bartending at the “Rusty Nail” in New York. Am I the only one who finds it odd that despite a booming economy and a economics degree, an attractive and articulate woman in New York City was earning less money than my 18 year old son did working in an Amazon warehouse? Something seems amiss in her story and I’m sure TMZ or the SIPA will eventually find the truth. While her little interviews and proclamations were amusing at first because of her lack of the most basic of economic facts, her ranting and pie in the sky ideas have now caught the attention of other democrats running the house. Instead of some of her childish ideas being politely dismissed, there is a growing group of lawmakers openly embracing some of these crazy ideas and we believe everyone in the financial world better take notice before the socialist/communist come marching into your office using the power of regulation to take what they want.

The left is now proposing 70-90% income taxes, a wealth tax based on your holdings and Welfare/Medicare for all. There are even crazier ideas about the climate and the environment but for now we will focus on this idea that your stock portfolio will be assessed for value and you will have to pay a tax on it. In another speech, Senator “Full of Bull” Warren is proposing a tax on your real estate holdings, while completely ignoring we have property taxes in place at record rates in the north east and California. Under her plan, this tax would be in addition to those already insane taxes. Of particular interest to Pocahontas and Cortez are hedge fund managers and the wealthy on Wall Street. This is very alarming to say the least because this is a typical communist manifesto that has been used for hundreds of years and has resulted in the confiscation of people’s wealth and the estimated murder of over 100 million people who were against this policy in places like China, Russia and S. America. While we don’t believe it will get this far, everybody on Wall Street and in particular FINRA better pay attention.

When the government wants something but can’t get it they find another way to obtain their goal. In this case, they want the Wall Street money and the best way to get it is to regulate, fine and confiscate assets by use of regulation. While many of you must be shaking your head and thinking they already do this, there is another avenue. FINRA is not a government entity and is able to take the money but then use it on operations, benefits, bonuses and investor education. To a leftist that is a waste of billions that could go toward extending healthcare to pets and wildlife and the best way to get total control would be to end FINRA , expand the SEC and have all those fines and assets plowed into government coffers. Senator Pocahontas has already floated the idea that FINRA should use the enormous fines they levy to pay off investor arbitrations, and you can bet your commie red shirt that Alexandria Cortez will be livid when she discovers how much FINRA’s top brass is making in compensation. Right now the bartender with an economics degree is making a paltry $174,000 as a congress woman while district directors of FINRA are making double that amount and the top brass in FINRA make ten times that amount in total compensation.

While we hope that this rhetoric dies down, we think it’s a genuine concern and many a country that ‘tried” socialism/communism is in tatters now as a result of it. Now might be a good time to become involved in your local politics and begin using the SIPA and other voices like the NIBA to express your concern.

*Editors note: We mean no ill will toward Native Americans, only toward Elizabeth Warren who recently revealed she is 1/1024th Native American. Ironically, in a recent ancestry DNA test it was revealed my wife is  4% Native American heritage. Yes, this is true.

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Date
February 8th, 2019

Author
jbusacca

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