ISH.
>>> MARKETS OPENED MOMENTS AGO
UP ASH 300 POINTS NOW THAT
PRESIDENT IS POTENTIALLY
CHANGING COURSE.
VIA TWITTER, I GUESS.
THE WHIPLASH HE CREATED OVER
MORE COVID RELIEF SENDING SHOCK
WAVES THROUGH WALL STREET.
MARKETS TANKED WHEN THE
PRESIDENT CALLED OFF STIMULUS
RELIEF NEGOTIATIONS UNTIL AFTER
THE ELECTION AND HOURS LATER AND
AGAIN THISVERSED
COURSE A BIT SIGNALING AIRLINE
BAILOUT, SERVING WALL STREET AND
ANOTHER ROUND OF STIMULUS
CHECKS, CHECKS THAT WOULD LIKELY
HAVE THE PRESIDENT’S NAME ON IT
AND CLEARED BEFORE ELECTION DAY,
WERE STILL ON THE TABLE.
THIS WHIPLASH SHOWS THAT THE
PRESIDENT’S COVID DIAGNOSIS HAS
NOT CHANGED HIS STRATEGY.
IT HAS AMPLIFIED IT.
AS MY COLLEAGUE AND I REPORTED
THIS MORNING, MAYBE THE
PRESIDENT AND MITCH McCONNELL
CAN PLAY POLITICS UX, MAYBE THEY
CAN AFFORD TO WAIT.
YOU KNOW WHO CANNOT?
THE MILLIONS OUT OF WORK AND
NEED SUPPORT.
THE MORE THAN 30 MILLION THAT
FACE EVICTION AND THE HUNDREDS
OF THOUSANDS OF SMALL BUSINESSES
INCLUDING RESTAURANTS ACROSS
THIS COUNTRY THAT COULD CLOSE
THEIR DOORS PERMANENTLY.
JOINING ME NOW TO DISCUSS, JAKE
SHERMAN, AUTHOR OF POLITICOS
"MORNING NEWSLETTER," THE
POLITICAL PLAYBOOK AND ANTHONY
SCARAMUCCI AND FORMER WHITE
HOUSE COMMUNICATIONS DIRECTOR.
ANTHONY, I CALLED YOU WHEN I
WATCHED THINGS PLAY OUT WITH THE
PRESIDENT THEN PULLING STIMULUS
NEGOTIATIONS AND ASKED YOU TO
EXPLAIN THE PRESIDENT’S STRATEGY
FROM AN ECONOMIC AND POLITICAL
PERSPECTIVE, AND THE REASON YOU
ARE HERE THIS MORNING IS BECAUSE
THE FIRST THING YOU SAID TO ME
WAS, THE PRESIDENT HAS A
PRE-COVID MIND-SET.
WHAT DOES THAT MEAN?
>> BECAUSE HE’S IN DENIAL ABOUT
THE DISEASE, EVEN HIS OWN
DISEASE, HIM HAVING IT HIMSELF.
HE’S SEEING HIMSELF AS AN
ECONOMIC LEADER AND SOMEONE THAT
HAD GREAT STOCK MARKET SUCCESS
AND ECONOMIC GROWTH, AND HE
DOESN’T WANT TO TAKE IN THE
REALITY THAT HE AND HIS TEAM AND
THE EXECUTIVE BRANCH OF THE
UNITED STATES MISMANAGED THE
HEALTH CARE CRISIS THAT TOPPLED
THE ECONOMY AND PUT US IN THE
GREATEST RECESSION SINCE THE
DEPRESSION.
SO THAT’S WHAT HE’S COMING AT
IT, FROM THAT MINDSET.
I THINK PEOPLE MUST HAVE GOTTEN
TO HIM LAST NIGHT AND SAID,
LISTEN, YOU’VE GOT TO DO
SOMETHING BEFORE THE ELECTION.
ONE OTHER QUICK THING,
STEPHANIE.
THESE STIMULUSES DO WELL FOR THE
DEMOCRATS.
IT’S NOT CLEAR THAT REPUBLICANS
ARE IDENTIFIED WITH THE
STIMULUSES.
SO IT’S NOT CLEAR HE WOULD GET
CREDIT FOR SIGNING THAT, AND I
THINK THAT’S SOMETHING ALSO
FRUSTRATING HIM.
>> JAKE, DO YOU AGREE WITH THAT?
TAKE ME INSIDE.
BECAUSE THIS COULD HAVE BEEN A
WIN-WIN.
LOOK AT USNCA.
THE PRESIDENT NEEDED TO GET THAT
DONE FOR A POSITIVE NEWS CYCLE.
WHEN YOU ACTUALLY LOOK INSIDE,
DEMOCRATS GOT FROM A POLICY
PERSPECTIVE EVERYTHING THEY
WANTED IN THAT THING BUT A HUGE
WIN FOR THE PRESIDENT SAYING,
I’M RESPONSIBLE FOR USMCA.
COULDN’T WE HAVE SEEN THE EXACT
SAME THING HAPPEN HERE?
>> I HOPE WE HAVE THE REST OF
THE HOUR HERE, STEPHANIE.
A FEW THOUGHTS HERE.
NUMBER ONE, THERE WAS A DEAL TO
BE HAD.
NO QUESTION ABOUT THAT.
IT WOULD HAVE REQUIRED THE
PRESIDENT TO PUT IN A LEVEL OF
LEGISLATIVE ELBOW TO GET THROUGH
IN A WAY THAT HE HADN’T BEFORE.
HE’S NEVER REALLY DONE THAT.
HE DIDN’T DO IT ON USMCA OR THE
TAX CUTS.
ALMOST NEVER IN ALMOST FOUR
YEARS AND FIRST YEAR AS
PRESIDENT.
TWO, SENATE REPUBLICANS AT $1.3
TRILLION, NANCY PELOSI AT $2.4
TRILLION.
A BIG GAP AND NEITHER WILLING TO
COME DOWN FROM THAT.
I DON’T CARE IF WALL STREET
ANALYSTS WHO LARGELY NO NOTHING
AND THE DON’T UNDERSTAND THE
POLITICAL LANDSCAPE SAY THERE’S
A NUMBER IN THE MIDDLE.
OF COURSE THERE’S A NUMBER IN
THE MIDDLE.
ALWAYS A NUMBER IN THE MIDDLE OF
TWO NUMBERS.
THAT NUMBER WAS IMPOSSIBLE TO TO
REACH BECAUSE OF POLITICAL
DYNAMICS.
EVEN IF THEY MET IN THE MIDDLE
OF THAT AMOUNT, DOESN’T MEAN
THERE WOULD HAVE BEEN A DEAL.
SENATE REPUBLICANS WERE VERY
WARY OF THIS.
I KNOW BECAUSE I’VE TALKED TO
DOZENS OF THEM IN THE LAST
COUPLE WEEKS AS THIS UNFOLDED.
TRUTH IS THEY’VE BEEN IN THESE
TWO POSITIONS NOW FOR 12 TO 15
WEEKS’S HAVEN’T
WEEK.
THEY HAVEN’T MOVED.
MARKETS ARE WOEFULLY UNEDUCATED
ABOUT WASHINGTON.
REPUBLICANS HAVE SAID WHAT THE
PRESIDENT HAS SAID ABOUT A
PIECEMEAL DEAL SINCE JULY.
I WAS JUST THINKING THIS
MORNING.
I TALKED TO MARK MEADOWS IN JULY
ABOUT A PIECEMEAL DEAL.
SAYING IT FOR THREE MONTHS.
THIS IS IDIOCY.
THE PEOPLE ON WALL STREET SHOULD
SPEND A DAY IN WASHINGTON AND
TALKING TO PEOPLE, BECAUSE THEY
ARE JUST COMPLETELY OUT OF THEIR
MINDS.
>> THEY SHOULD NOT -- SHOULD NOT
DO THAT.
SHOULDN’T SPEND A DAY --
>> HITTING YOU WHERE IT HURTS.
>> DON’T DO THAT TO MY FRIENDS
ON WALL STREET.
THEY SHOULD NOT DO THAT.
>> IT’S UNBELIEVABLE THAT PEOPLE
ARE IN CHARGE OF MONEY WHO DON’T
UNDERSTAND THE BASICS OF
POLITICS AND LEGISLATIVE --
LEGISLATIVE POLITICS.
HE’S PEOPLE IN ANY OTHER
BUSINESS, WALL STREET ANALYSTS
PUTTING 90% ON A STIMULUS DEAL,
ANY OTHER BUSINESS WOULD BE PUT
AWAY FOR FRAUD.
I MEAN, IT’S COMPLETE NONSENSE.
ANYBODY WITH A BRAIN UNDERSTOOD
THIS.
>> OKAY, JAKE.
ON THOEN
ANTHONY, TO THAT POINT.
THE PRESIDENT SAYS LOOK AT THE
STOCK MARKET AND THE GREAT
ECONOMY.
OF COURSE THE STOCK MARKET HAS
DONE REALLY WELL OVER THE LAST
FEW YEARS.
HE CUT CORPORATE TAXES IN HALF,
AND BASICALLY SAID, NO
REGULATION IS COMING YOUR WAY.
IF I SUDDENLY HAD TWICE AS MUCH
CASH ROLLS AROUND MY HOUSE I’D
BE DOING A LOT BETTER, TOO.
HOW CAN THE PRESIDENT CONTINUE
TO SAY, I’M THE ECONOMY GUY.
I’M MR. MARKETS, WHEN IN THE
LAST FEW WEEKS ALONE YOU’VE GOT
THE LIKES OF GOLDMAN SACHS,
MOODY’S AND JPMORGAN SAYING, AH,
THINGS MAY BE A WHOLE LOT
BETTER, STRONGER AND SMARTER
WITH JOE BIDEN?
>> WELL, ALSO THE POLLS NOW
REFLECT THAT.
THE PRESIDENT DID HAVE A SIX,
SEVEN-POINT MARGIN.
IT’S NARROWED.
BASICALLY EVE ON THEN ON THE ECO
DISASTER AT COVID-19 BUT EVEN ON
THE ECONOMY.
I GET JAKE’S POINT ABOUT
KNOWLEDGE OF THE LEGISLATIVE
PROCESS AND SO FORTH.
TRUTH OF THE MATTER IS, WE’VE
GOT TO GET THE DEAL DONE FOR
SMALL BUSINESSES, AND FOR LOWER
AND MISSION INCOME PEOPLE
BECAUSE THEY ARE REALLY
STRUGGLING AND HOPE WE CAN GET
THE DEAL DONE AND HOPE THEY CAN
STOP THE NONSENSE.
YOU’RE MISSING ONE OTHER PART OF
THE PRESIDENT’S PERSONALITY.
THE UNBELIEVABLE LEVEL EF
INSECURITY.
HE’S IN THE WHITE HOUSE AND
WANTS TO FLEX HIS MUSCLES BY
PUTTING A TWEET OUT THERE LIKE
THAT LAST NIGHT.
HE KNOWS IT’S GOING TO HIT THE
MARKET.
WANTS TO INFLICT THAT PAIN TO
SHOW PEOPLE HOW POWERFUL HE IS.
AND THAT’S ONE OF THE WEIRD SIDE
EFFECTS OF HIM.
COULD BE ALSO THE STEROIDS HE’S
ON.
MAKING HIM EVEN MORE CRAZY.
SO WE’LL HAVE TO SEE IF THEY CAN
GET THIS DEAL DONE.
I HOPE THEY CAN FOR THE AMERICAN
PEOPLE.
MORE SO THAN FOR THE STOCK
MARKET.
>> JAKE, THE PRESIDENT HAS SAID
HE WANTS -- PLEASE.
>> I WANT TO SAY ONE THING HERE.
ANTHONY’S RIGHT, BUT CONGRESS
RARELY DOES WHAT IT SHOULD DO.
I MEAN, PUBLIC SENTIMENT ON A
WHOLE HOST OF ISSUES, GUN
CONTROL, HEALTH CARE REFORM,
IMMIGRATION REFORM.
I MEAN SOME OF THESE THINGS ARE
90% ISSUES.
CONGRESS DOESN’T OPERATE IN A
UNIVERSE WHERE SWING TO LOGIC.
YOU KNOW THIS, ANTHONY.
WHERE DOING THE LOGICAL THING IS
THE DEFAULT.
IT’S ACTUALLY THE DEFAULT TO DO
THE ILLOGICAL THING WHY THEY’RE
NOT PASSING A PPE THAT WOULD GET
VOTES IN THE HOUSE OR AN AIRLINE
BILL SIMILAR IN BOTH CHAMBERS.
I WISH IT WEREN’T SO CONGRESS
IGNORED THE WILL OF VOTERS, BUT
IT IS.
>> WELL, SEEMS THERE’S NO PLACE
FOR PRAGMATISM IN WASHINGTON.
ANTHONY, LAST POINT TO YOU.
THE PRESIDENT HAS SAID HE WANTS
TO EXTEND PPP, GET STIMULUS
CHECKS OUT BUT NOT SAYING
ANYTHING ABOUT HELPING STATE AND
LOCAL GOVERNMENTS.
THAT MEANS WE COULD SEE
FIREFIGHTERS, POLICE OFFICERS,
TEACHERS HURT.
TALK ABOUT DEFUNDING THE POLICE.
THAT’S HOW YOU’RE GOING TO DO
IT.
STARVE STATES OF SUPPORT RIGHT
NOW.
IS THAT REALLY WHERE THE
PRESIDENT WANTS TO GO HERE?
>> WELL, HE, THE BLUE STATES,
BLOATED TO BUREAUCRACY, IT’S THE
WRONG POSITION.
NEW YORK, MASSACHUSETTS,
CALIFORNIA, THEY ARE THE ENGINES
OF ECONOMIC GROWTH, AND THEY ARE
THE GATEWAY FOR IMKBRANTS,MIGRAN
LED TO GREAT PROSPERITY FOR REST
OF COUNTRY.
HE SHOULD TAKE A MORE HOLISTIC
APPROACH.
US VERSUS THEM STRATEGY ALWAYS
WITH THE PRESIDENT.
HE’S A DIVIDER IN CHIEF.
NOT A UNITER.
HE WANTS TO PUNISH THOSE BLUE
STATES THAT HAVE BIG
INFRASTRUCTURE AND IT’S A HUGE
MISTAKE.
THERE SHOULD BE NO PUNISHING IN
A COVID-19 CRISIS.
THERE SHOULD BE NO BLAMING
ANYBODY FOR A HEALTH CARE
PANDEMIC.
THIS IS WHAT THE GOVERNMENT WAS
PUT IN PLACE FOR, STEPHANIE.
IT’S TO HELP PEOPLE IN A CRISIS