Prof G Markets
00:00:00 · S0, S1, S2, S3, S4, S5, Anthony Scaramucci, S7
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00:01:15 · Anthony Scaramucci, Ed Elson
[00:01:15] S6: Something's gonna break. Forget about it. [00:01:17] S8: Welcome to Prof G Markets. Democrats had a historic night at the polls in what many are calling a blue tsunami. The party won control of both the house and the senate, marking a major shift in the balance of power in Washington. The results are widely seen as a referendum on the Trump administration, and the economy obviously played a major role. Diesel prices are up 77% year over year. Inflation remains well above the Fed's 2% target, and workers are still seeing no real wage growth. Taken together, those pressures have clearly fueled a desire for change. So what exactly drove the results, and what do they tell us about the state of the country? With Democrats now in control of Congress, what can they realistically accomplish? And what might this agenda mean for the economy and for markets? Here to help us make sense of all of it, we are joined by one of our absolute favorite guests. This is our conversation with Anthony Scaramucci, founder and managing partner of SkyBridge Capital. Anthony, great to see you. I saw you very recently. We just did an excellent show on your podcast, The Rest is Politics U. S, which I encourage everyone to go check out. But this was historic on multiple different dimensions, Iowa, Kansas, South Carolina, Texas. Let's just start with your reactions to what happened.
00:02:38 · Anthony Scaramucci
[00:02:38] S6: Well, first of all, you were terrific this morning, and I appreciate you being with me. I... I'm I'm gonna I'm gonna say something meta and then say say something micro. I think I think the meta thing is total repudiation of Donald Trump. That word's been overused today. But I would say the micro thing is if you go candidate by candidate, particularly the senatorial candidates for the Democrats, they were decent. They were reasonable. They were in the consensus. Didn't see a lot of Democratic socialists in that mix. And that's why they were able to break some norms, Talarico, the one in Kansas. I mean, it came close there in Mississippi. You and I were laughing about it this morning. I mean, so I just wanted you think of the magnitude of this and guys just for one second, you've got 55 Senate seats and you've got two fifty house of representative seats for the Democrats. I mean, that is staggering in what has typically been a fiftyfifty country since the year 2000. And Ron DeSantis said it better than me, so I'm gonna say it to you. Take a look at the calendar, take a look at the states that are up in 2028, 2030, and 2032, and look at the magnitude of that victory. And it seems impossible over the next six years that the Democrats will lose the House and the Senate. Now, listen, crazy things happen. If they get a Trump like figure in the Democratic Party, there'll be a resounding trouncing, of course. But they really did seismic meteoric damage to the Republican Party. We can talk about the aftermath of it, but it was a combination of the electorate said enough of Trump. And then the other piece of this thing, which I think you know, Ed, is that if you bring the moderates to the game, or as your colleague Scott Galloway says, raging moderates, they're gonna win elections in The United States right now.
00:04:41 · Ed Elson, Anthony Scaramucci
[00:04:41] S8: We'll get to the democratic strategy going forward, but let's just linger on what the Republicans are supposed to do now, because this was a condemnation of Trump. He can say it didn't have to do with me, but it did. We know that from all of the polling. We know that from the approval ratings. This was a referendum on him. And so the question for Republicans at this point is, what is the identity of the party? This guy has defined the past more than a decade of Republican politics. And I look at what's happened here. It seems to me like this is the end. It seems to me like this is people recognizing, okay, we've had all fun, but this is the end of MAGA. Would you agree? [00:05:22] S6: I agree, but then I want you to point to me to a leader that wasn't MAGA. Tell me one leader that you and I could point to, household name, somebody that people could recognize, national figure or projudice, mini local figure wasn't MAGA. They all went into the bucket for MAGA. Now, if you wanna bring Chris Christie back, you wanna bring Lynn Cheney back, you wanna bring Paul Ryan back, Okay, that's differentiating, but who are you gonna bring? They're all MAGA, MAGA adjacent, MAGA light. Now they'll distance themselves. They'll burn their red hats and they'll try to get themselves photoshopped out of the thumbs up picture with Donald Trump. But to point to the person that you could go to and say, okay, MAGA's done, Trump blew it, but you're now the person, he or she, representing the non MAGA side of the party.
00:05:22 · Anthony Scaramucci, Ed Elson
[00:05:22] S6: I agree, but then I want you to point to me to a leader that wasn't MAGA. Tell me one leader that you and I could point to, household name, somebody that people could recognize, national figure or projudice, mini local figure wasn't MAGA. They all went into the bucket for MAGA. Now, if you wanna bring Chris Christie back, you wanna bring Lynn Cheney back, you wanna bring Paul Ryan back, Okay, that's differentiating, but who are you gonna bring? They're all MAGA, MAGA adjacent, MAGA light. Now they'll distance themselves. They'll burn their red hats and they'll try to get themselves photoshopped out of the thumbs up picture with Donald Trump. But to point to the person that you could go to and say, okay, MAGA's done, Trump blew it, but you're now the person, he or she, representing the non MAGA side of the party. [00:06:15] S8: Well, wonder if it would be someone like a Chris Christie. Of course, these people aren't in power, Could be. That to me was what we learned from this election is, you know, the only the only MAGA people who are in power now are the people who... It was it was essentially layups. And so it seems to me that there's gonna have to be some sort of reckoning. And so I wonder if... And and I'd be curious to know if you think that this is what will happen. You will see a swing back to a Chris Christie, Paul Ryan type in the Republican Party or maybe a candidate that we've never even heard of. Someone just comes out of nowhere. I mean, is that the direction, or do you think that they will stick with the MAGA guns?
00:06:56 · Anthony Scaramucci, Ed Elson
[00:06:56] S6: Well, listen. I think it's gonna be very hard for guys like Rubio and JD Vance. They are dipped in ruby red Donald Trump. I don't know how they get out of it. David McCormick, I think he's adjacent. He'll try to say that he is in, he'll try to use his veteran status. I think he's somebody that could run for president. He's a good guy. I like David McCormick, but I'm just saying he is MAGA. He can't pretend otherwise. He curried favor to Donald Trump to win the election in 2024, and some of Trump's coattails in Pennsylvania helped him. Glenn Youngkin, I would say he's probably the least MAGA of the MAGAs, but he was still pretty MAGA when he was governor of Virginia. He's a talented guy. But then again, you know this, and I know this, you need the Riz Ed Elson, you need a little bit of the Riz. Any of those guys have the Riz? Chris Christie's got the Riz. [00:07:51] S8: Chris Christie's got the Riz.