Dow Jones falls 500 points after election

Is it a realization that we now have a socialist government, or just profit-taking from the recent bear-market rally? Only The Shadow knows...
  • grandpamike
    Comment from: grandpamike
    11/05/08 @ 09:02:10 pm

    Ah, Chicken Little lives .......

  • Keith
    Comment from: Keith
    11/06/08 @ 11:07:23 am

    Ross, Both. The market rose with a hope that McCain might possibly pull out a win, so it was better to be in than out if that event happened. Therefore, we had a slight gain in the market. With the results coming across Tuesday night, you could see the futures starting to go South. Profit taking occurred and continues to do so as everyone is heading for the door anticipating an exact opposite scenario of the previous 25 years of phenominal economic growth. Welcome back to an era similar to 1966 through 1982. They have lost confidence in the market as the outgoing President hands the keys to the country's finances to a socialist Democrat that wants to redistribute wealth; not based on hard work, but on income or lack thereof. Not only does Obama want to eventually raise taxes (I do not see him doing that untill 2010 when Bush's cuts go away), but he wants to cripple industry with a bogus cap-and-trade system that will ultimately lead to higher energy costs and eventually to manufacturing losses as companies leave the States in droves. If you were a drinker of the Union Cool-Aid regarding Nafta and the loss of US manufacturing jobs that supposedly brought, you ain't seen nothing yet. The final nail in the coffin is the fact that Bush is also handing Obama equity stakes in the top 25 major US banks which does not bode well for capital creation. And that is what is important to any economy: capital flow. So we are getting increased social spending, increased taxes and a cap-and-trade tax that will deplete everyone's spending power. Oh, and with the trillions of greenbacks entering the market, you can expect a big round of inflation similar to the late seventies and early eighties. The only thing going for us is a vote in 2 years and at that point, the Dems can't hide behind Bush. The only thing changing in the country will be prosperity or the lack thereof. Keith