Noam Chomsky has warned the Donald Trump-fuelled rally in capital markets is coming to a close and another financial crash is on the horizon.
The economist, historian and linguist said the Presidentís ďanti-estabishmentĒ status was a ďjokeĒ given his establishment appointees and anti-regulation policies, which have encouraged the stock market.
ďWhat's anti-establishment?Ē he asked, as reported by AlterNet.
ďThis [cabinet] is drawing from the billionaire class, largely financial institutions, and military and so on; in fact, take a look at the stock market, that tells you how anti-establishment he is.Ē
He pointed to cabinet members such as Treasury Secretary Steve Mnuchin, a Goldman Sachs alumnus. Gary Cohn, his Director of the National Economic Council, was the COO at the same bank.
ďAs soon as Trump was elected, and since, stock values in financial institutions escalated to the sky,Ē said Mr Chomsky.
ďInvestors are ďdelighted he's going to eliminate regulations, let them make more profit; of course, it'll lead to another crash, but that's somebody else's problem. The taxpayers will take care of that.Ē
After almost eight years of a bull run during former President Barack Obamaís administration, pundits expected financial turmoil under President Trump Ė a lot of the anticipated negative reaction was due to the element of uncertainty as Hillary Clintonís victory had been priced into markets.
Despite jitters around his Muslim ban executive order and his tweets targeting certain companies, causing them to temporarily plunge in value, the US stock market reached a record high after the November 8 election and continues to rise - for now. Stocks like pharmaceuticals, banks and prisons have all soared under the promise of tax reform and less regulation.
For example, the President signed an executive order to review the Dodd-Frank Act, signed under Mr Obama after the financial crisis to ensure banks hold larger capital buffers and limit risky investments to protect consumers. He also scrapped the impending Fiduciary Rule, which, if made into law, would have forced financial advisers to put the best interests of their clients first.
Noam Chomsky predicts Donald Trump (external - login to view)