Do you know what Wall Street did on Friday? Well, let me tell you.
They set out to scapegoat Donald Trump for a projected increase in the u.s. deficit, that's what they did.
That's according to some folks who swear to Christ that everything – everything, I tell you! – is a conspiracy designed to undermine the presidency.
And I'm serious, there are people out there today literally suggesting that Wall Street is now engaged in a meritless (and thereby deliberately nefarious) attempt to blame Trump for the ballooning deficit which apparently, isn't his fault.
The reason it's ridiculous to suggest that Wall Street's revised Treasury issuance projections (which of course cite the tax plan) are somehow an attempt to unjustifiably blame Trump is the same reason it's ridiculous to suggest that the media is out to get the President: Wall Street is simply stating facts about what the tax bill means just like the media is simply reporting what Trump actually said and/or did.
One of the banks out on Friday revising up their projections for Treasury issuance is Goldman and there's a super-ridiculous narrative floating around about how, by citing the tax plan, the bank is trying to shield the Fed from criticism for its role in effectively enabling fiscal irresponsibility over the years.
Anyone see what's ridiculous about that narrative? Yeah, we do too.
What's ridiculous about that narrative is that the architects of Trump's tax plan (Cohn and Mnuchin) used to work at Goldman. So if Goldman is out to shield former employees – like say Bill Dudley – from blame for a rising deficit, one imagines Cohn and Mnuchin are like “hey, what the fuck?” because after all, they're former Goldmanites too and Goldman cites their tax plan as the proximate cause for the forthcoming flood of new debt issuance.
So when you hear conspiracy theories about upwardly revised projections with regard to Treasury supply, just know that there is no conspiracy. There is just reality. And the reality is this, via Gary Cohn and Steve Mnuchin's former employer:
