The DSA Takeover of the DNC & Optimism Reigns Supreme – Top 3 Takeaways – August 5th, 2026
Takeaway #1: The DSA takeover of the DNC
If there’s one thing that’s increasingly clear, it’s that the distance between the DSA and DNC is rapidly diminishing. At first the establishment left said...oh it’s just Bernie and he’s an ‘independent’ anyway. Then from Bernie it was just AOC. Then the mainstream Democrat Party said it was just the Squad. Then it was just a mayor in Seattle...and then just another in Chicago. Then it was only supposed to be the Commie Mandani in NYC... and then it was only the 3 Mandani endorsed candidates in and around New York City that knocked off the establishment picks in the primaries this year...but if you’ve noticed the trend, socialism is now a significant wing of the Democrat Party...and it’s rapidly growing. The greatest example of this during the primary process this year popped up in Maine of all places. As I pointed out at the time with the primary win of an actual tattooed Neo Nazi socialist... Maine isn’t exactly the kind of place most people think of when it comes to whackadoo leftist's states. I also mentioned at the time that it was likely a sign of more DSA’s candidates to come for the Democrat Party. That’s do to this reality... Over the past twenty years findings by Gallup and Pew Research show those who identify as “liberals” within the Democrat Party rising by about 1% per year. Or in other words the Democrat Party of today is about 20-points to the Left of where it was twenty years ago today. More to the point, a majority of Democrat voters now identify with the hardest left factions of policy today. This shift explains for example why the standard Democrat position twenty years ago was opposed to same sex marriage and illegal immigration...and today the most commonly Democrat supported position is in favor of government funded sex change operations for children and open borders for illegal aliens. But it’s not just radical social policies that are being advocated for.
Takeaway #2: Its that increasingly socialists are knocking down the DNC’s door
And never has that been clearer than what went down in Michigan yesterday. While Maine isn’t what comes to mind when you think of a deep blue radical state...It nevertheless is a blue state. Maine hasn’t voted for a Republican for President since Kokomo by the Beach Boys was #1...that’s since 1988. But Michigan...it’s a quintessential swing state won by Trump twice. And while Detroit is Detroit, it’s certainly not one of the first states that comes to mind when you think of left-wing commies...although for a number of years many have watched what Dearborn has become as it became the first Muslim majority community in this country in 2023. But yesterday’s primary win in the U.S. Senate race in Michigan was the most significant example to date that what happens in Dearborn hasn’t stayed in Dearborn as DSA supported Islamist Abdul El-Sayed is the Democrat’s Senate primary candidate. And next door in Wisconsin, a state which holds its primaries next Tuesday, the Democrat’s leading gubernatorial candidate, the DSA’s Francesca Hong, has previously called for Thanksgiving to be canceled. The DSA takeover of the DNC is here. As has been my theme throughout this year...this version of the Democrat Party is the most dangerous yet and with the DSA becoming the Democrat’s base across the country it’s on full display.
Takeaway #3: Optimism reigned supreme
If you want to feel good about something, look at your 401k today. Yesterday was a blowout day with records set for the S&P 500 and for a myriad of different companies. Massive money is being made by those continuing to invest into the teeth of this booming AI age. So here’s the thing... I put my faith in Jesus not in people...which is to say that when it comes to potential peace in the middle east...I will need to see it to believe it. However, on Tuesday, optimism reigned supreme on Wall Street. All it took were continued strong earnings reports and seven words from Treasury Secretary Scott Bessent to CNBC on Tuesday morning... We are in talks with the Iranians. That did the trick as did this... There is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict. He added this for color... It would be freedom of movement. So, you’re telling me there’s a chance... There’s arguably a better chance that Lloyd still ends up with Mary in the end in the end than there is a peace deal worth the paper it would be written on coming together with Iran. As an aside...it somewhat pains me to drop a Dumb and Dumber reference. It goes into my Nirvana bucket, which is to say I look back on the early to mid 90’s wondering what the heck was wrong with me that I actually once liked those things...but nevertheless Scott Bessent’s word carried enormous weight and it brought about a massive rally for stocks for a second day while oil dropped significantly for a second day – dropping prices back to $75 by the close which was the lowest price in just over three weeks. In fact, we’re now only 7 bucks a barrel from the lows during the peak of optimism during the MOU and 8 bucks from the lowest prices since prior to President Trump agreeing with Bibi that it was worth taking out the first, second and most of the third string well Imaming mullahs in Iran. So...clearly the deal didn’t come together yesterday...so that must mean to today’s the day...? So, here’s the deal. Part of the reason so much optimism was priced into Scott Bessent’s words yesterday is that he operates with a different type of Street credibility. Yes, he’s the Treasury Secretary but previously he was well known as a highly credible hedge fund operator and real estate empire creator that led to his billions. Unlike President Trump he doesn’t have a proclivity for just saying things... But that still doesn’t mean that Iran’s a more reliable actor than they were over the weekend. So, this is the key going forward. Can the incredible gains be maintained...and how low can oil and thus gas go? We’re about to enter a particularly important couple of days. Either a minor miracle occurs and the Islamic terrorists in Iran (as opposed to the Islamic terrorists who are Democrat candidates – just want to be clear) really do agree meaningfully to open the Strait of Hormuz...or we’re about to be tested significantly. That’s due to the massive run for stocks and the big drop for oil. Simply sustaining this progress regardless of what does or doesn’t happen in Iran would be major wins...with significantly lower gas prices on their way. Or...markets reverse quickly in a potentially violent way. And that’s independent of the super important jobs news that’s on tap with the ADP Report today and government jobs report on Friday. Stay tuned for news...