Thursday, October 9, 2008

Obama Presidency Could Bring Great Depression

Investing is all about confidence in the future. While we could argue that the polls have shifted against Senator McCain because of the bailout plan, most of the bad news is behind us. So why isn’t the Dow Jones Industrial Average going up? Why has it continued to slide?

Is Senator Obama's lead in the polls depressing the Dow Jones Industrial Average? The Dow should be coming up with news of Treasury Department's activities to stabilize the market. However, the Dow continues to drop. Is this due to Obama's current lead in the polls? Did we lose $1,000,000,000,000 (i.e., trillion) of the two trillion lost in the New York Stock Exchange because Obama is ahead in the polls? Most likely, investors don’t see a bright future if Obama wins. The Dow dropped 300 points on the day Obama clinched the Democrat nomination. Investors are afraid of his plans for the economy. Tax and spend. Tax and spend. Tax and spend. The Obama plan is mostly the same old gibberish about increased investment not leading to job growth and that only the Federal government knows what is best.

Is the Dow dropping partially due to Obama's continuing lead in the polls? Yes, there was a huge mess on Wall Street that is now getting cleaned up, and the financial markets are being stabilized, but why isn't the Dow Jones Industrial Average going up? Isn’t it at least partially due to Obama's lead in the polls? Could it be because investors fear Obama's stated goal to raise taxes sharply and grow government? Socialist policies always panic Wall Street. The message of Robin Hood is to steal from the rich to give it to the poor. But is class warfare good economic policy? Many of Obama’s economic advisers are already involved in the economy through the Democrat-controlled Congress. Can we afford to have a Democrat in the White House, too?

Will electing Obama for President send the U.S. economy into another Great Depression? The Dow Jones Industrial Average is down almost $1 trillion dollars lower than it should be ($2 trillion down total since the financial crisis) and this seems to be because Obama is ahead in the polls. Will an Obama presidency destroy what is left of investor confidence and send the U.S. into another Great Depression? Yes, a Presidential candidate can hold sway over the stock market. Electing a candidate who is hostile toward investors can have a devastating effect on Wall Street.

The financial markets are down for a multitude of reasons. If Obama was seen as a savior who could help, the stock market would have recovered substantially. If my estimate is correct, imagine what the Dow will do if Obama is elected. Can America afford to elect Obama President? No!

7 comments:

Pablo said...

This post is just hilarious!

Yeah, you totally convinced me, the stock markets are crashing because Obama is ahead.

Actually, wait, don't you see the relation, the crisis started because those unemployed black men did not pay their mortgages, and you know, as John McCain would say: You know who else is black? "That one".

With arguments like this one, it is no surprise the great job McCain did in the debate. Next time you should invite Sarah Palin to write a post, I am sure it would be as hilarious as this one.

Pablo said...

OBAMA PRESIDENCY COULD BRING A NEW ICE AGE

In the last 10 days, since Obama is ahead in the polls, the average temperature in the USA has been constantly decreasing.

Some retarded people would say is a matter of coincidence, and some smartass scientist may say that is because of the winter.
But here is the truth, Global Warming is running away because it sees Obama ahead in the polls.

Thanks to Obama and the scientific tree-huggers we are heading into a new Ice-Age, just imagine how cold it would be if Obama gets elected.

Can America afford to elect Obama President? No!

Ferny for McCain at Stanford said...

Pablo,

The funny thing is that Dave is more right than Obamaniacs like you might be willing to accept. David M Kennedy, a Stanford historian and Obama supporter (actually a maxed-out Obama donor) wrote in a book a few years ago,

"He also unleashes some convention-shattering theses, such as his revelation that "the most responsible students of the events of 1929 have been unable to demonstrate an appreciable cause-and-effect linkage between the Crash and the Depression" and his subsequent argument that, although it made order out of chaos, the New Deal did not reverse the Depression--that, he says, was the war's doing"

Which is ironic now that so many people begin to make parallels with 1929 and say that Obama is to this crisis to what FDR was to the 1929's one. No wonder people in the stock market might be terrified of an Obama-big-government type of presidency. Luckily for us, these are not FDR times. Thanks to the 22nd amendment, even if Obama wins, he will be kicked out in 2016 at the latest, maybe earlier (such as his spporter Carter was) if he screws up too much too early.

Oh, and BTW, at least you'll have to admit that without the crisis the chances of Obama winning would have been very, very slim!

Anonymous said...

I agree with you and appreciate your post. I also would point Pablo to the facts about Obama's support of Fannie Mae and Freddie Mac. The trouble with the truth is that...well...it's the truth!

FAQ Editor said...

Interesting comments, folks... Note that Obama candidacy is buoyed by perceived messianic, or at the very least, presumed superhuman properties. Whenever a speaker presents "kryptonite" before the candidate, the candidate's supporters engage in dissonance reduction, denying the authenticity of the "kryptonite" or that any such "kryptonite" exists, even as the candidate slumps... I hope we aren't going to be subjected to another cult of personality.

Brain said...

Your comment "The Dow should be coming up because of the Treasury Department's attempts to stabilize the market" is oversimplified. The market knows full well that there are significant costs and risks to the Treasury's actions and thus was hesitant to give the economy the go ahead. The market waited for actual signs of the bailout affecting the credit markets, which we're now seeing. It is true that McCain is likely better than Obama for stock market values in the short term but claiming Obama will send us into a depression is pure speculation at best.

Brain said...

To add one more thing, instability in the financial markets is only the tip of the iceberg. We still have at least 3-4 quarters to work through as the effects of the financial crisis are felt on main street. These concerns are continuing to weigh down the market, not Obama.