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Pop! Why the Obama Bubble Has Collapsed
U.S.News & World Report (Capital Commerce blog) ^ | 9-10-2008 | James Pethokoukis

Posted on 09/10/2008 11:11:41 AM PDT by Schumpeter

The Obama campaign seems to have experienced a "Minsky Moment." That, as any financial bubblologist worth his weight in tulips knows, is the particular point in time when no more "greater fools" can be found to support a bubble and a Great Deflation finally begins. Sssssss. (The financial phenomenon is named after economist Hyman Minksy.)

Now Obama's Minsky Moment is morphing into the McCain Moment. The evidence? Here goes: 1) The final 10 national polls in June had Barack Obama up by an average of 7 percentage points. The past eight polls this month have John McCain up by a bit more than 2 points, according to RealClearPolitics. 2) Right around the same time that Obama's polling lead was entering landslide territory in June, his odds of victory over at the Intrade betting markets were hovering at a sky-high 70 percent. Today, Obama's chances are right around 50-50 vs. McCain. 3) And now, according to a New York Times story yesterday, the deluge of donations has started drying up: "Pushing a fundraiser later this month, a finance staff member sent a sharply worded note last week to Illinois members of its national finance committee, calling their recent efforts 'extremely anemic.'"

Speculative bubbles have come in many different varieties: flowers, railway shares, Florida property, Beanie Babies, comic books, technology stocks, exurb McMansions. Does Candidate Obama qualify? Well, the candidate does sound a bit like a lot of the hot Internet companies back in the late 1990s. Not much of a track record. Lots of media hype. Parabolic ascent. And now a stomach-dropping decline.

(Excerpt) Read more at usnews.com ...


TOPICS: News/Current Events; Politics/Elections
KEYWORDS: mccainpalin; obamabiden
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To: Schumpeter

His bubble popped because it was supported solely by.. hot air.


61 posted on 09/10/2008 1:35:08 PM PDT by Mr Inviso
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To: ExTexasRedhead
“The emperor of the world has no clothes.”

He also has no soul, no morals, no honor, no patriotism, no guts.

More to the point...No experience, no achievements, no resume, no record, no references.

62 posted on 09/10/2008 3:06:33 PM PDT by Wil H
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