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\nThey awakened the sleeping giant, the great middle class of America. On this historic night, the average citizens of the United States roared and joined Brexit in voting against globalism and in favor of nationalism. To empower Trump, the middle class also handed him a completely Republican-controlled congress.<\/p>\n
They tore down President Barrack Obama\u2019s legacy. Obamacare will be repealed. The Iran nuclear agreement, which was established only by executive order, can be easily ended by executive order. Numerous legacy achievements that Obama thought he could do unilaterally by executive order can now all be undone in a day. (Though I\u2019m sure Trump will give them much more careful thought that that, but such are the possibilities when you ignore the people\u2019s house and act on your own.)<\/p>\n
For liberals and globalists, for the establishment on Wall Street, the world is a different place at the end of the day than it was at the dawn. Many liberals scoffed derisively at the notion that Trump could win. Democratic talking heads like Alan Colmes brazenly told Trump supporters to call him after the election because Hillary was going to win for certain, and they could eat their words; but Trump destroyed the Democratic establishment, giving the entire GOP a victory that even the GOP didn\u2019t believe was coming its way. It wound up being a good thing for them that Trump was on their side.<\/p>\n
Establishment Republicans and Democrats alike failed to perceive the rage of the forgotten middle class as certainly as they failed to see the Great Recession coming. This was not a vote for the man. It was a vote for revolution. Many of the swing voters who proved essential to Trump\u2019s victory could barely stomach voting for Trump because of his arrogance, his trickle-down tax plan, his often expressed attitudes to women, the fact that he is the one percent and always has been. I\u2019m not saying most Trump supporters had those concerns about Trump. Not at all, but the swing voters who made this victory possible in polls that were tight in much of the country. The one thing they all saw in Trump is that he was their only hope for a candidate who could grab the establishment by the shoulders and shake it up.<\/p>\n
It is the people who were concerned that Trump is too much of a loose cannon and to reckless in speech who\u00a0did have those concerns who came out of the closet and voted for him at the last moment \u2014 supporters in the end the even the Trump campaign didn\u2019t know about. And it is those voters that I\u2019ve been saying are the likely hidden voters that pollsters were not seeing \u2014 people who were not willing to say to anyone they would vote for Trump because there was so much they disliked about him, but who would vote for him at the end of the day because they are so thoroughly disgusted with the establishment. These\u00a0sleeper votes turned a questionable win into a strong win.<\/p>\n
Whether their hope will be well invested, I don\u2019t know. I certainly hope it will. Trump has so far, picked purely establishment people to be his team (Larry Kudlow and Stephen Moore for his tax team, a Goldman Sachs VP as his likely Treasurer, and Pence and his VP), but he hasn\u2019t chosen many yet, so I can hope that doesn\u2019t represent the course he will take. \u00a0Or maybe he has some miraculous ability to work with the establishment in order to change it, rather than throw it out. I don\u2019t know.<\/p>\n
If you look at a map of all county\u2019s, colored by which candidate that county voted for, the Unites States is a sea of red, even greater than Reagan had. If you look at the popular vote, it was a thin victory of only about 1.5%.<\/p>\n
I can hope the sea of red thatTrump received in support\u00a0and the knowledge that it was not catering to those establishment leaders and advisors that got him to victory\u00a0but those millions of Middle Class voters looking to him in hope \u2026 I can hope that even humbles the great Trump and crystalizes in his mind that he has been chosen to work for the Middle Class. I think the magnitude of this election could very well do that, and his victory speech showed a man who appeared humbled by the victory \u2014 a good thing to see in someone who has spent most of his life telling the world how phenomenally great he is.<\/p>\n
Trump also would never have won, except that Hillary was so horrible that numerous Democrats couldn\u2019t stand voting for her. She may hold the record for being the candidate most disliked by her own people. Even her campaign managers wrote about her \u201cunlikability factor.\u201d She was a hard-fighting opponent, but she had to be because she came with so many liabilities.<\/p>\n
Stock market dive is certain<\/h3>\n
The stock market will nosedive in the morning. Futures in the market show that, so it\u2019s not a hard economic prediction to make. There is, in fact, no\u00a0surprise in that for anyone, as nearly everyone\u00a0has said it will\u00a0happen; but will this be the cataclysmic crash I\u2019ve predicted, or will it be like Brexit where the market\u00a0plunged in shock for a few days and then found its balance?<\/p>\n
The stock market was a rickety scaffolding built up to the clouds anyway. So, it was\u00a0certain to fall soon, regardless of who won. However, a Trump win assured it will drop immediately because Trump\u2019s victory\u00a0strikes fear in the hearts of Wall Street that his gracious victory speech is not likely to overcome.<\/p>\n
The market had priced itself for a Hillary win, particularly in the past two days after Comey backed out of investigating Hillary a second time. So, now it has to correct itself. The problem is that, if it really corrects itself, it has a lot of correcting to do. I can\u2019t say if it will\u00a0turn out to\u00a0be like the the Brexit plunge \u2014 a brief release of shock realigning to a new reality \u2014 or the crash I\u2019ve been predicting for this year.<\/p>\n
My conviction\u00a0has been that the Federal Reserve and others will just let it fall so they can blame the failure of their false recovery on Trump. I\u2019m not sure they will even have a choice\u00a0, as the market\u00a0may gain enough momentum when it starts falling that it cannot stop. The first plunge can contribute business collapses that bring more decline. Global stock markets may fall even harder in fear of what they perceive as isolationism and lack of support for allies like NATO. Whether those perceptions are valid is irrelevant, as the markets rise and fall on perceptions.<\/p>\n
I am certain the establishment will not get it. They will blame the market\u2019s fall on Trump, saying it is proof that he\u2019s an economic disaster, rather than on the fact that this market was ready to fall at any moment. That\u2019s why the government and Federal Reserve appeared to be barely able to hold the market up. It flatlined for months, even with a huge increase in government spending and with the Federal Reserve repeatedly holding off on it promised interest increases.<\/p>\n
The establishment fear factor<\/h3>\n
I\u2019ve pointed out several times that Trump\u2019s tax plan is the greatest gift Wall Street, corporations and stockholders have\u00a0ever seen. Those tax savings\u00a0could easily make up for the losses corporations\u00a0fear in Trump\u2019s promised renegotiation on free trade. So what is the Wall Street\u00a0\u00a0establishment afraid of?<\/p>\n
Change, and lots of it by a loose canon they cannot control<\/p>\n
Loss of control over other politicians who gravitate toward Trump\u2019s popularity.<\/p>\n
Prison.<\/p>\n
More than anything, the 90%.<\/p>\n
If Trump takes this Middle-Class revolution deeply to heart and the Republican Party trembles in fear at the rising of the Middle Class and moves with it, then this night has the power to be\u00a0a game-changer for the elite. Real power has always rested in the 90% \u2026 in the people \u2026 if they would wake up\u00a0and realize they do have the power because they have the numbers to\u00a0force changes; but until now they didn\u2019t know they had the numbers. I am hoping they have risen to say, \u201cFrom now on, look out for the Middle Class\u00a0first \u2026<\/em>\u00a0in your tax breaks and everything else you do.\u201d<\/p>\n