Quote:
Originally Posted by Tyrone Slothrop
It's a good question. Financial stocks have been doing very well, out of an expectation that Congress is going to deregulate. More generally, I think a lot of people in the business world don't quite take Trump at his word, and take the benefits of the current system for granted.
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Under either Clinton or Trump, easing of regulation on banks was coming. I think that's been priced in for some time. The Trump bump, I'm guessing, is a factor of the delta between the anticipated rollback under HRC and the more significant rollback we'll get under DJT. Also, as Trump was a surprise win, this icing on the cake wasn't priced in previously.
The current bank system is, at least for small businesses and consumers, a fucking disaster. Loan officers are now of the mindset, compliance first, profit second. Trump's going to be excellent for small to mid business lending. I've got a couple situations where clients can't give personal guarantees (for other regulatory reasons). Last year, that required one to go into the private lending market. This year, banks are asking for a few months time, at which point their compliance department expects to be able to much more liberally negotiate terms.
