Source: WallStreetOnParade.com
Both Bloomberg News and the Wall Street Journal have now reported that it’s not just presidential candidate Donald Trump that is proposing a U.S. Sovereign Wealth Fund, but that President Joe Biden’s administration is also exploring the idea.
The Wall Street Journal reported as follows on the Biden plan late Sunday night:
“It isn’t clear how far the White House plan, overseen by national security adviser Jake Sullivan and his deputy Daleep Singh, is from completion, or whether Vice President Kamala Harris, the Democratic presidential candidate, supports it. A Harris spokesman didn’t respond to a request for comment.”
The advisor on Trump’s plan for a U.S. Sovereign Wealth Fund is John Paulson – a hedge fund billionaire not particularly known for putting the national security interests of America ahead of his own greed. (See our reporting yesterday for background on Paulson’s shorting of the U.S. housing market, becoming a billionaire as millions of families lost their homes to foreclosure in the worst financial crisis since the Great Depression.)
The advisor on Biden’s plan – as reported by both the Wall Street Journal and Bloomberg News – is the National Security Advisor Jake Sullivan. For the National Security Advisor to be investigating putting more government money into businesses engaged in critical national security areas, means there are very serious problems that market forces on Wall Street are failing to address. Investors on Wall Street want to see ongoing proof of profits, rather than engage in patient long-term investing to ensure the national security of the United States.
Three such problems come to mind immediately: Intel, Boeing and U.S. Steel.
As the chart above indicates, in less than nine months, Intel has lost 60 percent of its market value; Boeing has lost almost 40 percent; and U.S. Steel has lost over 30 percent. All three companies play key roles in U.S. national security….