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November 21st, 2008

Stock Market Down Record Drop after Election

The stock market was crashing in October with the expectation of an Obama Presidency. After Obama and the Democrats were elected the market fell by the most ever after an election falling over 2,000 Dow points or 20+% in 2+ weeks. A stock market fall after an Obama win was predicted here before the election.

The stock market is saying there is no confidence in Obama and the Democrats. Who would have confidence when they call for economic destructive policies of tax, spend, socialist programs and deficits. A stagnant economy that will result from Obama and the Democrats policies of higher taxes and anti-business policies will mean less tax revenues ballooning the deficits. The government at all levels from federal to local cities and states will go broke causing them to ask for federal bailouts and forced to cut jobs and other spending.
The Federal Reserve is now in a desperate situation. The Federal reserve will need to finance the federal deficit, states and cities deficits and keep the economy from collapsing by expanding the money supply. This will cause money to lose value causing high inflation. Investors and consumers will want to get rid of the devalued money before it devalues more and will buy what they can get their hands on. This will likely help stocks, real-estate and gold. We will likely see a period of stagflation like the Carter days or even much worse.

Posted by admin as Economics, General, politics at 6:03 PM UTC

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November 11th, 2008

How bad will the economy be under Obama?

Usually when a new President wins there is optimism that there will be improvements. But before Obama won and was only leading in polls, the stock markets fell sharply and business activity including loans came to a sharp decline. Consumer confidence declined and after the election consumer confidence declined even more sharply.

There is expectations of a declining economy in future months by evidence of the stock market decline. People sell when they expect a bad economy. The economy grows when investors have confidence and consumers have confidence, but all hope is only held by the ones that think they will get some kind of handout under increased government spending. The deficit is certain to climb to record amounts as government spending increases and tax revenues decline as the economy declines. When confidence is lost, investors, banks that would make loans, and businessman cut back to hold on to what they have to survive the coming economic down turn. Obama and the Democrats calls for higher taxes and sharp increases in social spending including billions for healthcare and other welfare spending and resulting deficits causes sharp declines in confidence. While it’s too soon to predict massive increases in the money supply to prevent an economic collapse and inflation the economy will likely continue downward in a deflation until the so called money printing presses are working over time. If the money supply is not increased sharply, which will also be destructive, a deflation depression will be on it’s way. After a short reprieve as the money supply is increased, inflation will hit the economy and peoples savings as money is devalued.

Posted by admin as Economics, General, politics at 5:14 PM UTC

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November 6th, 2008

Obama Wins and Stock Market Falls as Predicted

As predicted here, an Obama win did result in a stock market fall. It was a sharp fall of about 10% in 2 days. The McCain bounce in the stock market we saw last week as McCain gained in the polls came to a crushing stop when the important states of Pennsylvania and Ohio were called for Obama.

Posted by admin as Economics, General, politics at 6:49 PM UTC

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November 1st, 2008

Stock Market Has Best Week In Years as McCain Gains in the Polls

Just 2 weeks ago I wrote, McCain Gaining in the Polls, Stock Market Likely to Rise, this week polls showed the election getting closer and the stock market rallied for the best week since 1974. If McCain wins the stock market will likely continue to rally. However, an Obama win, the stock market may fall next week but it will be grave for economy and stock market for a long time. A McCain win may result in a stock market surge next week as people are relieved that a socialist didn’t take over.

Posted by admin as Economics, General, politics at 3:24 PM UTC

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