Elizabeth Warren Announced a Plan to Ban Private Prisons. Then Their Stocks Tanked.
On Friday morning—at 9:17 a.m., before markets opened, to be precise—Warren tweeted out her newest proposal, which would ban the use of private prisons in the United States.
One key thing to note about this plan is that Warren wouldn’t need Congress to execute all of it—after all, federal contracts are handled by the executive branch. If you’re trying to price in the possibility of a Warren presidency (or a Democrat who is likely to follow Warren’s policy lead), this is the sort of proposal you really need to pay attention to.
And it appears Wall Street was, in fact, reading. As Bloomberg notes, stocks for private prison companies such as CoreCivic and Geo Group Inc. tumbled Friday.
Good.
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