Wednesday, November 05, 2008
Stocks Plunge as Investors Ponder Obama Presidency; Dow Down 500- AP
A case of post-election nerves sent stocks plunging Wednesday as investors, again anxious about a recession, began questioning what impact a Barack Obama presidency will have on business and the overall economy.
And so it begins. I hope this market reaction isn't indicative of the future. I suspect people will be selling off their investments now in anticipation of higher taxes later. I read somewhere today that this was the largest ever Dow drop the day following an election. I really can't blame this on our President-Elect though, the market has been yinging and yanging like crazy lately and hundred point swings have become the norm.
I also won't blame Obama if the markets continue to dive the next couple years. I really believe that the President has little control over the economy. If Congress raises taxes and unemployment goes up, inflation increases and the economy gets a lot worse, than I'll comment on that aspect. Because taxpayers create jobs, not the President or the government. Who's more likely to start a business and employ people, a guy making $500K a year or a guy making $50K a year? So why would we raise taxes on the first guy to give money to the second guy? The first guy might be employing ten people making $50K. If his business goes south, that's a problem.
A case of post-election nerves sent stocks plunging Wednesday as investors, again anxious about a recession, began questioning what impact a Barack Obama presidency will have on business and the overall economy.
And so it begins. I hope this market reaction isn't indicative of the future. I suspect people will be selling off their investments now in anticipation of higher taxes later. I read somewhere today that this was the largest ever Dow drop the day following an election. I really can't blame this on our President-Elect though, the market has been yinging and yanging like crazy lately and hundred point swings have become the norm.
I also won't blame Obama if the markets continue to dive the next couple years. I really believe that the President has little control over the economy. If Congress raises taxes and unemployment goes up, inflation increases and the economy gets a lot worse, than I'll comment on that aspect. Because taxpayers create jobs, not the President or the government. Who's more likely to start a business and employ people, a guy making $500K a year or a guy making $50K a year? So why would we raise taxes on the first guy to give money to the second guy? The first guy might be employing ten people making $50K. If his business goes south, that's a problem.
