As prediction markets showed the probability of Sanders winning the Democratic nomination going up earlier this year, the probability of Trump winning reelection in November went up, too. That means people betting on the election don’t think Sanders can win, and it’s a comparable crowd to the Wall Street world.
“He is audibly laughed at at work for his repetitive stream of hippie grandpa platitudes that serve as his ‘platform,’” said Emma Johnston, a vice president at asset manager State Street Global Advisors. “Gauging Sanders’s electability has effectively become guessing how many jellybeans are in the jar. Can he break even on the centrists he loses versus those he pulls from Trump’s base? People at my job don’t seem to think he can, and they certainly will not be voting for him.”
“Bernie likes to complain about billionaires, but he never really accomplished any particular policy or regulation that really got in their way, and I wonder if Wall Street folks kind of think of him as somewhat harmless,” said Charlie O’Donnell, a venture capitalist at Brooklyn Bridge Ventures. “It’s not clear that financial regulation is going to be something that he has a leg up on.”
“Broadly speaking, yes, I know Sanders loathes investment banks, but his subscription to the entire liberal orthodoxy is baked in, versus Warren who speaks with more precision about what she would do to Wall Street,” Johnston said. Though she also noted that in focusing so much on the details, some in the industry might be missing the point: “Bernie is popular precisely because he is imprecise.”
Many in finance can’t imagine a world where Sanders is in the White House, but even if they do, they think there’s a strong chance he’ll be restrained.