Treasury Secretary Scott Bessent criticized California Gov. Gavin Newsom after Newsom mocked Bessent’s comments at the World Economic Forum about how the Trump administration could restrict large investors from buying single-family homes. The back-and-forth played out in social media posts and televised remarks from Davos, where Bessent also tied the dispute to California’s budget outlook.
At the World Economic Forum in Davos, Treasury Secretary Scott Bessent appeared on Fox Business to discuss the Trump administration’s interest in limiting or banning large institutional investors—such as private-equity firms and large corporate landlords—from purchasing single-family homes.
In the interview, Bessent said any policy would need to distinguish between smaller “mom-and-pop” owners and institutional buyers, offering an example that drew attention online: “We’re going to give guidance, at some point, to see, what is a mom and pop. Someone, maybe your parents for their retirement have bought 5, 10, 12 homes. So we don’t want to push the moms and pops out; we just want to push everyone else out.” (dailywire.com)
California Gov. Gavin Newsom responded on X on January 20, 2026, posting: “Could this smug man be more out of touch?” with a link to the clip. (dailywire.com)
On January 21, 2026, Bessent hit back in comments shared by Fox Business correspondent Edward Lawrence from Davos. In the remarks, Bessent compared Newsom to “Patrick Bateman meets Sparkle Beach Ken,” said Newsom “may be the only Californian who knows less about economics than Kamala Harris,” and criticized Newsom for attending Davos “with his billionaire sugar daddy, Alex Soros.” Bessent also referenced Newsom’s COVID-era restrictions, saying he had people “arrested for going to church,” and concluded: “Shame on him. He is too smug, too self-absorbed, and too economically illiterate to know anything.” (dailywire.com)
The exchange comes as Newsom’s office has said California faces a $2.9 billion budget deficit this year—its fourth consecutive multibillion-dollar shortfall—despite revenue growth tied in part to stock market gains and investments connected to artificial intelligence. (nbcbayarea.com)
The Daily Wire’s account of the dispute also pointed to Newsom’s long-documented ties to the Getty family and Gordon Getty’s early backing of Newsom’s PlumpJack business ventures. Past reporting by the San Francisco Chronicle described Gordon Getty investing in Newsom’s early businesses, including the initial PlumpJack wine shop. (dailywire.com)
