The Dow Jones and stocks worldwide are off a cliff this morning, and it's not hard to see why. The politically correct explanation is that there are worldwide fears of a recession.
Uh, sorry, but the arrival of hard times was apparent weeks ago. I think the real explanation is somewhat different. Yes, folks, it's the Obama Crash. McCain's imploded, and it's clear Obama's the next president, or rather, the first Supreme Leader. The advent of Obama means the abandonment of the growth-oriented economic policies of the past twenty years, and a tax-hiking, regulatory friendly, union-oriented administration that thinks wealth redistribution by government fiat's a good idea. Dumping stocks and other paper is understandable, even if the dumpers have left it late. Chaos, wars and trouble, if they were stocks, would be good buys about now. Unfortunately, the US is not going to be a wise or safe place to park money for a long, long time.
3 comments:
El Jefe
I assumed that the Market(s) had discounted an Obama victory a long time ago. One of the benefits the county would get from a McCain victory would be the large scale change in direction of international investments to the US.
But things have changed in the past month or so, there is an even larger scale discounting haqppening.
Hank,
Not only is there the victory and its immediate consequences...but we have rising consequences among people with eyes to see about second order consequences. The bottom is falling out of oil prices. We have a weak president coming in, an inexperienced man, a new man, somebody with endless faith in talking and lawyers and networking, with an instinctive mistrust of hard power and the military.
I would expect that powers disatisfied with the international order as it now exists to act in concert to present and forward their demands to change it. Russia wants parts of the Soviet Union back, China wants a settlement over Taiwan in its favor and the US out of Westpac. The Iranians tell us daily they want an end to Israel, and they also expect to have dominance in the Gulf. Plus, we have Obama's promises to get out of Iraq, and deeper into an intractable war in Afghanistan that we don't have a prayer of winning -- particularly with the reduced military a Democrat administration is likely to give us.
Our erstwhile allies are going to see how the wind is blowing and make regional accomodations with reality as it now exists. We are going to be very, very alone.
Finally, we have Democratic economic policies -- Socialism, really, that are going to trash our economy.
Right now, the country just wants an end to Bush, and is in a sort of shock about the stock markets. But there will be a backlash. The backlash will have a hard time expresing itself once the Left and a filibuster proof majority get hold of the government. But it will still be there -- fueled by all this trouble, and an increasing flood of events amounting to national humiliation produced by a left administration. But all of these internal divisions will produce an inward focused country that can do nothing about its plight until we are able to vote the Left regime out however many years later it takes us. This means that Iran, Chavez, North Korea and the jihadists will, for a few years, have things their own way. Particularly with Obama's stooges in the media running cover.
Little wonder the markets are having a nervous breakdown. Hang on...post 20 January life is going to get really, really weird.
The Obama Crash?
No, this is the Bush/Cheney/Greenspan/and some bit of B Clinton Crash.
Hello? Housing bubble? Mortgage backed sevcurities? AIG? Fannie? Freddie? Lehman Bros? Etc
What the ---- does Obama and the purported forthcoming "natl humiliation" have to do w this? Nada, zilch.
Get a grip, EJM.
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