So day two, not even on the job yet, and what happens?
The DOW drops again, almost as much as it did yesterday. It’s also worth noting that this has ushered in the largest stock sell off after a presidential election in the history of the stock market. This is not just investors and mutual fund companies selling stock folks… this means that businesses are starting to selling stock.
What does this mean? Well, looks like business America doesn’t have faith in its ability to pay all the promised tax increases that await them, and their trying to get what ever profit they have left out while they still can. If/When this socialistic tax system comes into full swing and these companies not only loose their tax breaks, but get their taxes increased… they are going to start costs. That means cutting research, development, and most importantly… jobs. This is most likely why Reuters said yesterday that we’re potentially looking at massive layoffs during 2009.
Looks like an international crisis (you know… the crisis’s that Presidential Elect Obama promised us) is starting to take shape. Russia ordered missile stations to be placed at the borders of some of our NATO allies. Cuban Missile Crisis? Anyone remember that? From the source:
President Medvedev ordered missiles to be stationed up against Nato’s borders yesterday to counter American plans to build a missile defence shield.
Speaking within hours of Barack Obama’s election, Mr Medvedev announced that Russia would base Iskander missiles in its Baltic exclave of Kaliningrad – the former German city – next to the border with Poland.
He did not say whether the short-range missiles would carry nuclear warheads.
Taking advantage of the world’s attention on the US elections, Mr Medvedev also canceled plans to withdraw three intercontinental ballistic missile regiments from western Russia by 2010.
Final thought… the news is just now (after he’s been elected) starting to voice real concerns over a President Obama. Well jumping Jimmy Cricket on a pogo stick! If you guys maybe asked him a tough question or two maybe we wouldn’t be staring down a messy four years. Here is the transcript of a conversation between Charlie Rose and Tom Brokaw discussing how they don’t know about his foreign policy, or where he draws his inspiration from. Two issue you think would have come up before the election.
ROSE: I don’t know what Barack Obama’s worldview is.
BROKAW: No, I don’t, either.
ROSE: I don’t know how he really sees where China is.
BROKAW: We don’t know a lot about Barack Obama and the universe of his thinking about foreign policy.
ROSE: I don’t really know. And do we know anything about the people who are advising him?
BROKAW: Yeah, it’s an interesting question.
ROSE: He is principally known through his autobiography and through very aspirational (sic) speeches.
BROKAW: Two of them! I don’t know what books he’s read.
ROSE: What do we know about the heroes of Barack Obama?
BROKAW: There’s a lot about him we don’t know.
America Voted for a whole lot of change two days ago… and I really think she’s going to see it.
For the Conservative Underground, here is your motivation for the day:
November 12, 2008 at 10:24 am
Hey Paul,
I’m confused when you say “Second day on the job.” President-Elect Barack Obama is not the president. These stock drops are happening under Republican/Conservative law. I really hope you’re not suggesting that this financial crisis is the fault of Obama’s financial plans? The cause is poor business management, poor leadership in the financial sector, and a lack of respect for honest business practices.
We have much higher taxes (and stricter regulations) here and Canada, and overall our economy is much more secure than the US. The Blackberry, for instances, is still growing, growing more in the consumer market now than ever before.
November 12, 2008 at 12:30 pm
Hey Pat,
Maybe some more clarification was needed on my part. The stock market dropping is not so much a result of Obama’s plan (as it can’t be, because he isn’t even sworn in yet) but rather an anticipation of what President Obama may do.
Very top level, the way the market is working right now, an increase in the business tax will most likey into a loss of profit for the business. A loss of profit will translate into diminished stock value. Diminished stock value, translates into a loss of money for people who hold that stock. A lot of people who see this are pulling out of the market now while there is still more money to be made from selling.
Hand to God, I honestly hope I am wrong about this. I know a lot of people personally who are going to feel some sting as a result of where things could potentially be headed.
Just to set partisan records strait, I am not a fan of either Republicans or Democrats. The lot of them appear to be corrupt. However right now any blame of predicted short falls, I have to lay at the feet of the Democrats as they are the ones who are going to be controlling most of the government in the very near future. As such it is what they are saying right now that is driving market predictions of the near future.