Posted on 10/06/2008 5:53:28 PM PDT by hecht
McCain Speaks, DOW Rises
The DOW was down over -800 points until John McCain started his hard-hitting speech today attacking Barack Obama on everything from his Palestinian campaign contributions, the economy, to Fannie and Freddie. The DOW ended down -334.91, which is very bad but certainly not as bad as -800.
I thought the financial situation was supposed to be saved by the $850+ billion bailout that just had to pass last week? Now we are hearing that the bailout was just the beginning, that there will be at least two, maybe three, more bailouts.
From the New York Times, September 30, 1999:
... will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits. [snip]
In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.
As I have said before, I'm certainly no expert in the economy and never claimed to be. Could it be that the stock market was responding to John McCain's strong speech today?
This is silly.
The market did not rise bc of McCain.
So, is this like the seas will calm at the word of Baraq Husyan, The One (piss be upon him)?
How many advisers are having meetings with their conservative clients that want to harvest their gains before the anointed one takes over, and can also offset these gains it in this market with harvesting losses.
My guess is the smart money has been out or is on a systematic way out before the cap gains rates are retroactive. Just my 2 cents....
Let the McInsane worship begin! /sarc
I find that plausible. Capitalist are afraid of a far left socialist winning the election. It would be interesting to see if when McCain rises in the polls the stock market falls and vice-versa.
The bailout wasn’t intended to make the stock market go up, it was intended to save the system from complete collapse. One can argue whether that was/is hyperbole, but it was essentially a giant airbag.
Post hoc ergo propter hoc
John The Light And The Way McCain to you.
It's a long shot but my dream idea to save this election addresses those issues:
Could President Bush make a speech after the next debate (where McCain hopefully brings up those very concerns about taxes) declaring, through executive order, a temporary halt to cap gains and dividend taxes for a 3 month explorative period to see if, and show how it positively affects the stock markets? The only caveat would be that it would apply only to new investments that are held for at least six months (to prevent a mass sell-off of existing holdings and excessive volitivity) If successful and the market goes up dramatically the day after the speech the Dems would look bad objecting to it and would be pressured to keep it no matter who wins the election. Also, in the unfortunate event that Obama is elected he would be reluctant to take responsibility of undoing any gains. Also McCain could look to be on the right side of an economic recovery without actually embracing Bush and President Bush could boost his legacy on the way out.
Is it even possible?
No need to state the obvious.
Could it be that the stock market was responding to John McCain's strong speech today?
No.
Great Idea, I am well versed in exec orders enough to know. This one treads on Congessional turf, i.e. tax policy, "The Supremes" may have a big problem with it....
Actually I DO think some of the recent downward movement of the DOW the last 2 weeks IS because of the presidential election.
I KNOW that businesses secretly behind the scenes are very worried about an Obama presidency, and what it will do to the faltering economy. These business leaders I talk to are holding everything close to the vest in public. But behind the scenes and off the record, they are very very concerned. They believe Obama’s tax and spending hikes will kill off and delay any economic recovery for years. Also very worried about the Union “free choice” act which would eliminate private union voting.
As Obama has risen in the polls the last 2 weeks, Wall Street has gotten worried about him possibly being elected.
That is a message that needs to get out there. That part of these falling stock numbers are concern over an Obama presidency.
Someone needs to get this out to Hannity and Rush Limbaugh.
By the time the Supremes get to it the effects will be out there, the point will be made and the election over!
Still, I realize I'm probably just dreaming ;)
What does Obama's telepropter have to do with this?
Thank you for your insight.
I think Hannity has hinted about this already at the edges or maybe it was Rush. Send a copy of your post off to them. Good Luck !
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