Thursday, November 8, 2012
Dropping Dow and Increased Amusement
As of closing this afternoon, the Dow has dropped 121 pts; it is at 12,811
And yesterday it dropped another 300pts or so..
So since Obama was elected, Wall St has responded with a sell off of 427pts and counting in just two trading days..
Perhaps it wasn't so bad after all that he won re-election.
More funny stuff:
On October 5th, was thus far the high mark for Wall Street regarding post QE3 trading when the Dow closed at 13,610. So that means in the span of one month and a couple days, the Dow has thus dropped 799 pts and counting...
So why are investors fleeing (besides being greedy little cowards)?
We can only assume they are fearful that a 2nd Obama term will mean paying higher taxes for the wealthy and a higher stock dividend tax.
Who can blame them right? Who wants to put anything back into a system or society that one rigs and takes n' takes from? "Taxes? Bah Humbug!.. Make the poor pay them.. Give us a good ole' flat tax By Jove!"
Now we all know how this game is played by now... drop the market low enough to either A) force more Fed assistance, B) artificially create a 'dip' where to attract new buyers by next week or C) scare Washington into compromising whatever principles they have to agree to a combination of spending cuts and tax increases that will avoid this overblown fiscal 'cliff' while doing the most minimal of harm to Wall St and Investors.
We sincerely hope now that President Obama has won a second term and being that he can never run for a 3rd, that he will demonstrate a lack of need for Wall Street's contributions and influence, and thus put them in their place... and of course punish them Hard.
Certainly Obama must know he doesn't need Wall St in order to secure a most impressive Presidential Library after his term in office is complete. That dangling carrot usually holds most second-term Presidents back from treating Wall St with the harshness it richly deserves.
So we can certainly hope Obama part deux will be different than what we've gotten so far...
Then again, if Obama is anything like former British Prime Minister Tony Blair, who bent over backwards to accommodate the banks then secured a highly paid position with Citibank after leaving office, then its going to be one ulcer-filled second term on the financial front.