I’m still in LA. West Hollywood to be precise. If ever there was a more blue (politically speaking) area in the US I’d like to hear about it.
I was at an opening of an exclusive real estate office in Beverly Hills yesterday. The group was Barnes International who have over sixty offices around the world (sadly none in Australia) and they specialise in luxury real estate and deal with ultra high net worth individuals (UHNW).
At the opening I met a banker and a broker. The banker works for Merrill Lynch in their private wealth area. His ability to provide funding is severely limited. I also met a broker – a former banker. He had no such limitations as his funding base were wealthy private individuals.
One of the principals of the real estate agency is a lady who was born in Iraq and emigrated to Australia in the 1960s. She then emigrated to the US in the eighties. Her family still lives in Australia. In the past when she wanted to visit her elderly parents (in Sydney) she simply booked a flight and travelled on her Australian passport. Now she has to make sure she can re-enter the US before she leaves – she has a US Green Card. Whilst I’m sure she will be fine (because she’s a Christian), this is the uncertainty and fear created by Trump’s executive orders.
Back in Australia, as ASIC investigates the broking industry and how it’s remunerated and at the same time the banking industry, it may just want to reflect on how it’s suggestions will play out.
Sure, we do vanilla home loans really well – and Thyme Financial does it brilliantly – but there is tremendous demand from small business out there that is not being met and it is holding back our economy.
The US just voted in a President that has promised to change that by repealing Dodd-Frank. It’s proper name is The Wall Street Reform and Consumer Protection Act of 2010. The act was constructed hastily in the political upheaval of the GFC.
In order to understand Americans’ decision to vote for Trump, you have to understand how its citizens think. In particular, Republicans. To us in Australia, they’re a bit of a weird mystery from the looney right of politics. I’ll confess that it’s still a mystery to me.
But they’re now in power and the world has to deal with them.
Republicans are sticklers for their constitution. Never mind that most have not read their constitution, there are an army of right wing commentators quoting relevant sections to make their case.
I have learned that I cannot win an argument on gun control with rational argument – by the way someone that argues for gun control may be carrying one so I would advise caution if you decide to enter a debate. The right is convinced that any small changes to their right to bear arms will be the thin edge of the wedge in diminishing their freedoms. Even when I compare deaths from gun crimes to deaths from terrorism (gun crime is much higher) and relate that to all the freedoms they have forgone to protect their citizens (from terrorists) – they will not be swayed. Why? Because they are very suspicious of facts.
You will learn that for every fact that you use to prosecute your argument they will counter with an “alternative fact” that the aforementioned right wing media has re-educated them with. It’s amazing how they’ve even found a PC label for a lie.
My Republican friends (and family) argue that this negation of people’s freedom is a small price to pay in the fight against terror. However, asking that a person with psychological issues undergo extra screening when applying for a gun appears to be a step too far.
As I write this, we’re on day eleven of the Trump presidency and he’s already passed a handful of executive orders that has shaken the world. There will be more.
The left wing commentators in the media are predicting Armageddon and a return to fascism. Bollocks. The right wing is jumping for joy. While the majority – the centre – is looking on with apprehension, ignoring the media and hoping for the best.
I leave for the airport today with my family and I’m a little apprehensive at what may greet us there (there are large demonstrations going on at LAX) but I still have faith in the US and what it has historically stood for.
As an aside, I’m currently reading a book about one of the authors of the US Declaration of Independence and its most famous words:
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.
When Thomas Jefferson wrote the above he was the owner of slaves and had fathered four children from one of them, Sally Hemings. Hemings and her children were the only slaves Jefferson freed despite being an advocate for the abolition of slavery his entire political life.
I highlight this not because I dislike Jefferson, I named one of my children after him (albeit as a middle name). I write it to highlight the hypocrisies that exist in many politicians. That doesn’t mean they can’t act for the greater good.
Before you get too excited, I’m not comparing Trump to Jefferson. That would be stupid. I’m just using Jefferson to make a point.
When Dodd-Frank is repealed I will be looking closely at what replaces it and whether or not small businesses around the world will finally have access to capital. In the meantime I’ll sit back and watch the two extremes of politics play their tug of war. In the end it will settle where it always does – in the centre – though it may take until the mid-term elections in a couple of years for that to happen.
Postscript
The above are some of my observations on the ground in LA and Boston. It is by no means representative of what’s going on in all of the US. In my two weeks there:
- I saw political demonstrations in Boston and LA.
- I watched the inauguration (on TV) but couldn’t help noticing the lead up to it. The parallels to a new Roman Emperor just can’t be avoided.
- Watched the New England Patriots make it to the Super Bowl with my family.
- I attended an office opening.
- I took my sons to burger joints (their favourites are In and Out, Five Guys and Shake Shack – possibly in reverse order).
- It had been four years since my last visit and I discovered LA’s air quality had improved dramatically (most people credit their smoke tests to register cars – I couldn’t help but notice the proliferation of all types of hybrid and electric vehicles due to generous government subsidies).
- To contradict the above point there is also a proliferation of muscle cars (Mustangs, Camaros, Chargers, Hellcats etc) as well as some of the largest SUV’s and trucks (utes) on the planet.
- My older son (a chef) noticed how the “on the side” culture in LA had now become ridiculous. He made this observation after having to construct breakfast for himself after he ordered a bagel with smoked salmon, cream cheese and other toppings. He expected it to come “assembled” – it didn’t.
- We observed how much more courteous drivers were in LA. My lovely Republican cousin quickly attributed this phenomenon to a series of road rage incidents ending tragically in shootings.
- I couldn’t help but notice how Americans make things easy for their citizens.
- Outlet Malls – oh joy oh bliss. Even with our currency at its current levels we had to buy.
- Their coffee had improved significantly – if you know how to order. Tragically you can still get a better coffee almost anywhere in our capital cities.
- I was very unhappy to leave my aunt/uncle and cousins but happy to be travelling back to Oz.
- American Airlines is a third world airline with fantastic staff. I will never complain about Qantas again.I noticed that no matter whom you voted for there was almost an obligatory requirement to despise the other side. I’m generalising as I didn’t meet everyone.