Biden's deterioration unnerved House Democrats as early as 2023, new book reveals

A new book by CNN's Jake Tapper and Axios' Alex Thompson details concerns among House Democrats regarding President Biden's fitness for office as early as 2023, citing instances where lawmakers observed his physical and mental decline. The book, based on interviews with over 200 Democratic insiders, suggests that while some Democrats recognized Biden's shortcomings, many remained silent until after his poor debate performance in 2024, fearing political repercussions, while a Biden spokesperson refuted the book's claims of a cover-up or that Biden failed to do his job.

Analysis

A new book, "Original Sin," by Jake Tapper and Alex Thompson, reveals that some House Democrats reportedly observed significant signs of President Biden's deteriorating condition as early as 2023, well before his 2024 reelection bid faced a critical juncture. The book, based on over 200 interviews primarily with Democratic insiders, details specific instances, such as Rep. Adam Smith finding Biden "completely out of it" at a White House Christmas party in 2023, and Rep. Seth Moulton noting the president looked "frail" and "lethargic." Rep. Mike Quigley's concerns reportedly arose even earlier, during an April 2023 trip to Ireland, where he observed Biden's rapidly diminishing energy and weak speech. Despite these early observations, many top Democrats, including White House officials and lawmakers, either ignored these signs or remained silent, a dynamic the book attributes to self-preservation. The turning point for many was Biden's "disastrous presidential debate" in June 2024, after which figures like Smith, Moulton, and Quigley publicly called for him to withdraw. The article highlights the internal panic within the Democratic party, with some fearing significant electoral losses, as exemplified by one House Democrat's exclamation, "I just lost my job," and warnings from former Speaker Nancy Pelosi about polling data indicating Biden could negatively impact dozens of House Democrats. In contrast, a Biden spokesperson refuted the book's claims, asserting that Biden was an "effective President" and that the book fails to show he neglected his duties or that a cover-up occurred, a sentiment echoed by Rep. Jim Clyburn who stated he "never saw anything that allowed me to think that Joe Biden was not able to do the job."

Key Decisions for Investors

• Investors should closely monitor the US political landscape for heightened uncertainty and potential policy shifts arising from the leadership concerns and internal Democratic party dynamics detailed in the report.
• Consider the potential for increased market volatility, particularly in sectors sensitive to government policy, if the described concerns translate into significant political changes or policy paralysis.
• Evaluate portfolio exposure to risks associated with political instability, as events like those described could influence investor sentiment and economic outlooks, even with the current low market impact score.