In general, congressional Republicans and Wall Street couldn’t be much closer. Financial industry lobbyists keep GOP leaders’ cell-phone numbers on speed dial, and Wall Street has grown to hate President Obama and his team with “an almost irrational passion,” as bankers and their lobbyists regard the administration “with a disdain so thick it often blurs to naked loathing.”
What’s more, it was the Republican Party that huddled with hedge fund managers and industry lobbyists to try to kill Wall Street reform, and later offered to trade campaign contributions for weaker layers of accountability.
Over the last month or so, however, it appears the GOP and its Wall Street allies are no longer on the same page. Wall Street executives and their Washington lobbyists, for example, have been pleading with Republicans not to play games with the debt ceiling, and so far, the GOP is ignoring their appeals.
Yesterday, Reuters found another break between the two buddies.
A majority of top Wall Street bond dealers and money managers say spending cuts alone cannot solve the U.S. budget problems and tax increases must be part of the mix.
In a Reuters survey conducted on Tuesday, 17 out of 29 fund managers and economists representing major Wall Street bond dealing firms said the Republicans’ favored option of spending cuts alone would not a work.
Are we to assume, given GOP rhetoric, that much of the financial industry is made up of socialists who are opposed to economic growth? Or is it more likely these industry leaders realize a balanced approach preferred by Democrats just makes more sense?