Today, CNBC aired a segment titled “When it comes to the market, is the Tea Party good news or bad news?” Hugh Johnson of the investment firm Hugh Johnson Advisors and Andy Busch of BMO Capital Markets joined hosts Larry Kudlow, Trish Regan, and Melissa Francis to discuss Republican radical Christine O’Donnell’s Senate primary victory in Delaware.
All the guests and hosts appeared to agree that O’Donnell’s victory was a good thing for Wall Street because she supports policies favorable to the financial industry. Although both guests conceded that O’Donnell’s nomination might be bad for Wall Street because it could enable a Democrat to win the Delaware seat, there was a general consensus that the string of Tea Party victories has sent the right “message” that Americans are drifting to the far right. The talking heads rattled off a variety of Tea Party and O’Donnell positions — like extending the Bush tax cuts for millionaires and opposing regulations — that they agreed with:
REGAN: So when it comes to markets, is the Tea Party and this victory in Delaware good news or bad news?
JOHNSON: You know in a strange sort of way, I think it’s good news because it first of all indicates passion but its passion on the part of the Republican Party. The passion is, we’re kind of tired, we’re fed up with big government and raising taxes. [...]
BUSCH: Well certainly the stance by the Tea Party candidate of a capital gains elimination for two years is wonderful for the markets! I think the central point or the salient point of the victory is not that this candidate is flawed. A lot of candidates are flawed as human beings are. But the point is, there is an energized base that is pulling the conversation this stance of fiscal responsibility but also business-friendly and market-friendly policies. [...]
KUDLOW: I totally agree, and we’re looking at a configured, conservative Congress. We don’t know if Republicans can take the Senate, that’s going to be close. It looks like they’re going to take the House, big time. That’s a conservative Congress. And as Andy said, that’s going to be pro-growth, pro-business, anti-spend, anti-tax views.
Generally, Kudlow and his associates have been proud partisans hoping for a Democratic defeat this November. But O’Donnell’s opponent Rep. Mike Castle’s (R-DE) was one of the few members of the GOP caucus to vote for financial reform. Notably, CNBC’s Kudlow is also a Tea Party movement funder through the attack group Club for Growth.