Politico: Investors Ready For Dramatic Sell-Off If Democrats Win
About the Author: The Party of Kennedy is NOT the Party of Pelosi. The Democratic Party has radically degenerated into a socialistic and postmodern perversion of its former place in American political thought. In place of Judeo-Christian values they embrace secular humanism; in place of a strong national defense they embrace a reliance upon internationalism; in place of a strong family they embrace a radical abortion agenda that increasingly includes outright infanticide.
I can't sit idly by and watch the culture war pass me by. It is time to choose sides. As Joshua 24:15 puts it, "choose this day whom you will serve."
Polls have shown that the more committed one is to (any) religious belief, the more conservative one tends to be politically. One’s views toward religion profoundly affect one’s commitment to political, social, and moral issues. In my articles, I seek to argue in favor of a religion-friendly view of culture, morality, and politics. Read more from this authorYesterday’s Politico story puts it this way:
Generally, financial analysts say the stock market likes Republicans more than Democrats. And while predicting market movements is as difficult as predicting the winner of the World Series in August, some experts say the market is already anticipating an Obama win on Nov. 4 and has at least partially accounted for it.
“Potentially, you could see a one or two-day rally on a McCain victory, and not much of a reaction if Obama wins, because that’s what’s expected at this point,” said Justin Fishkin, a partner at The Cypress Group, a financial services company in Washington, D.C. Fishkin, who earlier in his career was a hedge fund manager specializing in political, regulatory, and legislative event-driven investments, said the key issue on Wall Street minds is corporate taxation — which is why the market might prefer McCain and his promised rate cuts over Obama.
In other words, a significant part of the massive sell-offs we’ve already seen were inspired by the belief that Obama would win the White House and start screwing up the economy with socialism.
This adds to the fact that CEOs overwhelmingly (74%) fear that “an Obama presidency would be disasterous for the country,” that Obama would “have a negative impact on business and the economy,” and that “some of his programs would bankrupt the country within three years, if implemented.” Oh, well, what do Chief Executive Officers know about business or the economy, anyway?
Politico isn’t the only major news source reporting on the fear of an Obma presidency by the people who understand money and finance. MSN has an article titled, “Why Wall Street Fears Obama“:
Investors this summer have been placing their bets on an Obama presidency, and for the most part that hasn’t been good for the market.
Without giving him a chance to explain himself in detail on the campaign trail or at the Democratic National Convention, they are voting with their shares by tossing financial, health insurance, manufacturing and high-dividend stocks into the ash can, and are growing skeptical about energy companies as well.
It’s not that major institutional investors don’t like the man — far from it. He has many backers among the financial elite, including multibillionaires George Soros and Ron Burkle. And it’s not that there aren’t many other reasons for investors to sell stocks now, as the global economy tangles with the terrible twin beasts of bank deleveraging and inflation.
It’s just that Obama’s rhetoric on taxes and health care is scaring common wealthy people with large capital gains from investments made over the past decade, and a lot of them don’t want to wait around to see whether it’s just populist fluff that might be set aside once he takes office.
The real question for investors after an Obama win is the extent to which Democrats assume control of the Congress, and the more there are the less they like it:
Joe Lieber, a political analyst at the consulting firm Washington Analysis who scrutinizes elections for his clients at hedge, mutual and pension funds, said an electoral lurch that gave the Democrats 60 seats could prompt a dramatic sell-off on Wall Street.
“We’re getting a lot more questions about the Senate than the presidential [race],” Lieber said, “because there’s almost nobody on Wall Street right now who believes McCain’s going to win.” A filibuster-proof Democratic majority (three-fifths of the chamber, or 60 senators) would not be well received by Wall Street traders, he added. “A lot of investment professionals don’t necessarily want to give one party the keys to the entire city. Free markets like gridlock.”
Ah yes, the thrill of one party domination, with the in-the-tank media determined to tell the Titanic that everything is fine no matter how fast the country plows toward the giant iceberg.
An interesting question is to what extent conservatives and Republicans believe we should try to forestall the disaster we think will occur under the Union of Soviet Socialist AmeriKKKa (because that’s how Barack’s Marxist/anarchist/terrorist pal and his preacher for 23 years spelled ‘America,’ after all) or just stand back and let the meltdown commence.
Obama will ruin America before he even gets in office.
Shoot. That’s a better title than the one I picked!
I think we all knew this. Had lots of conversations with my hubby about this, this past summer. Still didn’t get out of the market. Oh well…won’t sell!
We may even see a “Black Wednesday” on Nov. 5. It may be chaos for our economy if he is POTUS.
You conservative people, you just don’t want to learn! Obama is walking in economics on a well proven path, in the Rober Mugabe’s, Hugo Chavez, Ceaucescu’s and other eminent economists’ footsteps! It’s a luminous future ahead - just wait and you’ll see.
I realize this is off topic, but given recent events at RCP (where articles were getting deleted by someone) I thought I’d cross-post this reply from Radarsite.
As a former librarian, all I can say is Thank G_D for Special Collections and Archives! These incidents prove how easily a Ministry of Truth can change the truth. I’ve heard time and time again in different fields, “If you didn’t write it down, it didn’t happen.” What happens when the paper you write it on (the blogs) can be changed or removed without your knowledge or permission?
I’ve noticed a couple of the articles regarding Obama’s past mention that “such-and-such a newsletter by this-and-that socialist/communist organization at this time isn’t available on the web.” It’s because these newsletters were printed/ xeroxed/ mimeographed (try explaining a “mimeo” to anyone under age 19) and were then sent to different people and organizations. Some of the organizations were libraries, who preserved them for later research. We need to work out a way to have these blogs and online newsletters converted to hard copy, something that cannot easily be tampered with or altered.I hope all of you are keeping MULITIPLE printed copies of your blogs and seeing that they get archived with some organization, such as a local library or historical society. If you can arrange to have about 20 copies in geographically separate locations, there is almost 100% guarantee that at least one copy will survive any purging effort. Two examples of that:
1. We know about the discussions surrounding the implementation of the Final Solution as proposed at the Wannsee Conference, because of a copy of the Wannsee Protocol was found after the war. Of the 15 copies that were made, the other 14had been destroyed by the participants, but this one copy was overlooked.
2. The destruction of the Library of Alexandria was a cultural disaster. It was one that did not have to happen. Rather than having different books and scrolls copied, the Library bought entire collections. They saved money this way, but it often meant that sole copies of some works were only available at the Library. If their purchases included works the Library already owned, the extra copies were destroyed. When the Library was destroyed, so were the works.
Keep up the good work, people. And remember … Let’s be careful out there.
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I believe you are correct in your assessment of the marker once a democrat takes office with a super majority in the senate.
Great article and I could not agree more. But I do have one question: Might it be that the CEO’s are against Obama’s tax plan not because they are business professionals but because they are the individuals that will get the personal tax raises? Perhaps this should have been mentioned and refuted…it would have made your article only that much stronger.
Well, well, well. So, the closing argument of the right is now:
Yes, people, we had Republican one-party rule from 2000 to 2006 and we understand that Republicans were thoroughly repudiated and butt-whipped in 2006. And, yes, we understand that the voters are not done yet. They are poised to give us an even BIGGER butt-whipping this time around, with even more losses in the Senate and House than “disastrous” 2006 gave us.
BUT, you MUST believe us. You think that Republicans have messed up this country royally, that we are on the brink of disaster because of us, defitits and debt spiralling out of control, markets crumbling all around us. But, we are here to tell you that with the other guys IT WILL BE EVEN WORSE.
Yep, great argument, folks. “We know we have failed you for a decade, we have totally mismanaged everything we could possibly have, but, give us one more chance, we will not screw you over this time.”
That is not a winning argument. It is not even a good attempt at blame shifting or fear mongering. Utterly sad what has become of the once proud fiscal-responsibility and budget-balance party.
Nov. 4 is the day of reckoning for the excesses, lies, obfuscations and corruption from the right.
Ladies and Gentlemen. I give you the culmination of 40 years of the Scum of the 1960’s, running ths EDUCATION system in this country. Think about how many of those Weather Underground TERRORISIS, are TEACHERS in SCHOOLS and UNIVERSITES, right now. Barak Obama? You want change? Here it comes. If you liked David Dinkins’, New York City, you’re gonna love this.
….the scary part and the part that has allowed obama to come this close to the presidency is that MOST common folk did not know this and don’t know this (then of course there are the truly indoctorinated volvo driving types who refuse to know it)
…which is where Joe the plumber and common sense start to kick in… A TILLION DOLLAR DEFICIT…people are starting to think “do I really think obama won’t raise my taxes” and “even if I am not a small business owner I do have something in common with Joe the plumber and not much in common with Obama or Warren Buffet (who will find good value under obama or mccain)
…I think there is still hope…I read that there has been a 20% swing in the catholic polls…as the word gets out in parishes that barack not only is an ardent supporter of partial birth but also refuses to defend live births where the abortion didn’t achieve its end..
..the man who won’t defend a new born maybe just maybe won’t defend the average guy on main street either let alone joe’s retirement fund
An era of Obama will be a redo of the Carter years; business will run for cover and our international enemies will have their way. It will be amusing, in a tragicomic sort of way, watching Obama explain why he can’t deliver on the ostentatious promises he has made. Just as Carter made possible the Reagan Revolution Obama will make possible the Next Conservative Era. We now become the Loyal Opposition.
You gotta love that MSN line: “Without giving him a chance to explain himself in detail.” The man has three broadcast networks, two cable networks, and every major big city newspaper grovelling at his feet; he can say whatever he wants, whenever he wants, without fear of follow up questions, and it makes the front pages, and the lead story on the national news — but those mean, nasty investors won’t let him explain himself. Maybe the problem is that he has explained himself too well - to Joe the Plumber.
CEOs understand that when you raise corporate taxes, income taxes, capital gains taxes, windfall profits taxes, and inheritance taxes, you undercut the incentive to invest and punish productivity. It is fact that lowering tax rates INCREASES revenues collected by encouraging investment and productivity.
http://www.opinionjournal.com/columnists/pdupont/?id=110010798
http://taxprof.typepad.com/taxprof_blog/2005/12/growth_in_feder.html
http://www.nysun.com/business/bush-tax-cuts-increased-tax-base-study-says/84823/
The problem is that the media covers bad economic news for Democratic administrations positively, and good economic news for Republican administrations negatively.
http://www.foxnews.com/story/0,2933,343671,00.html
I wrote an article about that:
http://startthinkingright.wordpress.com/2008/05/17/demagoguing-down-the-economy/
Muzhik’s point is not off topic at all. I can find positive stories about Clinton going back to 1992 by news sources that routinely purge positive articles on Bush and Republicans.
If I find a powerful article that really nails Dems, I copy it. Because I’ve learned it won’t be there long before it either gets “revised” or purged.
Not good. Investors should sell now in advance of the odds-on favorite Obama winning. If Obama should do what the New England Patriots did in this year’s Super Bowl and lose, then investors can promptly buy back in.
Although if McCain wins, expect riots and voter fraud lawsuits from Obama supporters.
The spin from “responsible” pro-Dem investment folk is that Obama won’t be able to do most of what he’s promised due to the budget woes. The fact is that the dishonest media will begin to positively spin the economy if Obama is elected, and the Democrats will buy their own propaganda. And Dems will spend and spend. And spend this country into collapse.