As I predicted on the day before the election, if Obama won, the Dow would fall to 7,500. Well, it did.
Of course, there are mega-financial pressures completely unrelated to Obama’s election.
But, he left some undetonated campaign grenades that unsettle the market. Will he raise taxes on businesses and investors next year? Last word from him: yes. Will he protect UAW jobs in Detroit with a bailout? Last word: yes. Who will be hisTreasury Secretary? Last word: hold your pants on.
At minimum, Obama should name Paulson’s successor and pledge to hold tax rates where they are until they expire naturally in 2010.
If he wanted to do something bolder, he should cut capital gains tax rates to zero for stocks bought from now until the end of 2009.
Regardless, he’s got to quit playing paddycake with Hillary, come out of hiding, and give investors some reason to believe.
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Note: I stand by my other market prediction: if Franken wins and Chambliss loses — the Dow will have it’s largest 1-day decline ever — at least 1,000 points. Hope this one goes unverifiable.
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November 21, 2008 at 12:07 pm |
Another question: where in the world is the current President? Besides skaking hands with the G20 on camera, there is nothing bold coming out of his office and he is the current President. His party helped create this shitstorm with a lack of policy and oversight. The market is clearly unsatisfied with the current bailout proposal. Obama is President-ELECT and now has the responsibility of dealing with a crisis that should have been dealt with during the real estate frenzy.
I don’t believe that now is the time to attack anyone who is stepping up to the plate to address this global crisis- whether it is Obama or McCain. This country is about to go through a major economic downturn that will effect everyone, but particularly pre/current retirees. We need to do what we do best and roll up our sleeves.
Yet Another Question: If McCain and Palin were elected would there really be a difference in the stock market yesterday? Would there nominations have stopped the job loss reports coming out? Doubt it.