…for investors to notice that pretty much everything Barack Obama wants to do will hurt the economy. Today, the stock market plummeted around five percent on Obama’s election. At least, that’s how it was being reported this morning as the collapse occurred. Later in the day, accounts softened to downplay Obama’s election as a cause of the market slide.
Actually, I think–more important, my broker thinks–that the prospect of an Obama administration is one factor that has contributed to the sharp decline of the stock market in recent months. Obama wants to increase taxes on capital gains and dividends, which will instantly reduce the value of every company in America and drive more jobs overseas. And that’s before we even get to “windfall” profits, increased regulation, empowerment of union thugs, higher tariffs and reduced trade, and so on.
Barack Obama is a rather mysterious figure: despite the fact that every policy he advocates will hurt the economy and the stock market, he has been the darling of Wall Street. Employees of securities firms have been among the biggest contributors to his campaign. I’m not sure how to explain that, and I don’t really think that today’s steep drop represents a case of buyer’s remorse. That will come, I think, but not for a while.
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