Skip to main content

Divided Congress = United America!

As predicted, US elections produced split congress with Democrats taking control of House of Representatives and Republicans keeping Senate (with increased margin). Pundits will analyze these results and comment on how nation is divided. I beg to defer! In my opinion,
Divided congress = United America!
People want their politicians (I refrain calling them leaders yet) to work together and implement policies and pass bills which both parties agree on. If divided congress produce complete gridlock, that's ok since at least nothing will happen. It also means no bad policies will be implemented. Time and again this has proven very effective. Some of the best years of 60s, 80s, 90s and recent Obama years had divided congress. Markets seem to agree that divided congress is good and hence all indices are up significantly.
Now that Democrats control house, let's look at 4 "i"s of Democrats:
Infrastructure, Immigration, Investigation and Impeachment.
If Nancy Pelosi and Democrats learn from past history, it would be best for them to focus on first two signature policies - Infrastructure and Immigration and work with President Trump in 2019 before politics of 2020 elections take over and nation gets fixated over last two - Investigation and Impeachment. If President Trump wants to leave legacy in his first term, it would be best for him also to work with Democrats on Infrastructure and Immigration. After all last major immigration bill happened under Republican president (Reagan) in 1986 and people remember him for that. President Trump already has lower taxes, strong economy, lowest unemployment in decades. He can add feather to his cap by working on Infrastructure and Immigration and leave a legacy behind!
Both Pelosi and Trump need to keep their "i" ego aside and focus on "we" to Make America Great Again!
Happy Diwali!
/Shyam

Comments

Popular posts from this blog

Clicks to Tokens: Will 2026 Echo 1998's Boom or 2000's Bust?

My "blogging" was in hibernation last 8 months due to my self-imposed restraint given the environment as well as built-in inertia to get started despite so many interesting events and markets reaching all time highs after taking a big dump around "Liberation Day" in Apr...Around that time I had the blog ready that it would be repeat of Mar/Apr 2020 panic and recovery during onset of Covid Pandemic. The hunch happened to be correct and I was glad that I could keep and take some positions which I am still holding especially around AI theme. But that was then...as 2025 is about to wrap up in 10+ weeks, let's look at what's in store for rest of 2025 and 2026. And what's better time than to start writing again just before one of the most important week on the calendar with multiple key events coming up next week... Fed meeting to decide the course of interest rates - it's almost guaranteed that Fed will cut rates by 25 basis points (2nd time in 2025) and...

2026: The Year of Convergence – Melt-up, Moonshots, or Mid-cycle Correction?

Happy New Year! After another period of self-imposed hibernation from the blog—partly due to the festivals, travel, intertia and partly to watch the dust settle on a chaotic 2025—I decided to use the quiet of this New Year’s morning to finally reboot.  Looking back at my October post,  “Clicks to Tokens,”  the hunch about the AI theme held firm. We spent much of 2025 debating whether we were in 1998 or 2000. As we enter 2026, the answer seems to be "neither and both." We have the roaring optimism of the 1920s fueled by "Silicon Spirits," but with the high-speed volatility of the 2020s. So, as the calendar flips, what is in store for 2026? Markets may experience melt-up (S&P touching 8000),  with some moonshots (like SpaceX and OpenAI) IPOs or even see mid-cycle correction bringing down S&P to 6000. That's a wide range and will be decided by Four R's... Here are my thoughts on the " Four R’s ":  Rates, Robots, Rotations, and Real Assets. 1. ...

Rockets, Relics & Roaring Markets: The $4 Trillion Crossroads of 1927 and 1999

Happy (almost) Summer! After watching Kevin Warsh get sworn in at a White House ceremony two days ago, tracking three S-1 filings that could collectively hoover up more capital than every U.S. IPO since 2022 combined, and watching 26-year-old stock charts finally break to new highs — it felt like the right moment to ask the uncomfortable question out loud. Are we at a party that ends gracefully, or one that ends with the furniture on fire? The market is simultaneously flashing the neon signs of 1999  and  the orchestral excess of 1927. Most commentators reach for the dot-com playbook. I think the original Roaring Twenties is the better map. Here's why... Assembly Lines to AI Clusters Ford's River Rouge complex was the largest industrial facility on earth in the 1920s — raw iron in one end, a Model T out the other. Steel, rubber, and oil became the picks-and-shovels of the age. GE and Westinghouse were electrifying factories and homes. The infrastructure buildout  was ...