Hedge Fund Insights: A Briefing From Washington DC
The 'Hedge' (aka Anthony Scarramucci) was on assignment at the White House this morning. And he’s returned with a few interesting morsels.
Scaramucci of Skybridge sat down with Austan Goolsbee, chief economist of the President's economic recovery board. Following are what Scaramucci tells us are the main take-away points.
1) With health care now passed the White House will focus immediately on Financial Regulatory Reform. Day 1 after recess, they want legislation on the President's desk before Memorial Day.
2) Bank lobbyists are scrambling. The administration is out to prove that they are free market principled, but want to curtail some of the excesses brought on by bad or nor regulation and excesses.
3) Taxes will likely go up, but not in a restrictive or excessive way. The Administration wants “Mama Bear taxes" enough to start the debt pay down, but not too much to restrict growth.
4) Double dip a greater danger than inflation right now--still deflationary pressures in the economy, and despite government borrowing net overall borrowing is down.
5) Schumer Graham immigration bill -- needs to be bi-partisan but also needs a pro business section let the super smart stay in our country. 50 percent of the hot tech deals are started by people who weren't born here but now live here.
What’s the trade?
I’d be cautious of the money center banks, says Scaramucci.
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CNBC.com with wires