Why. Obama will still be President.
Gridlock!
bttt
But he wont have access to his congressional box of matches to start anymore fires.
Just barely.
Don’t count on the market surging the day after. That is why the market has been climbing to new highs before the election in anticipation of a Republican win. The market tends to discount events in advance of the actual news.Although if the unforeseen happens and Republicans do not capture the House, the market may just unravel the day after elections.
The market will go up no matter how the vote turns out as long as the buying desk at the New York Fed continues to pump money into the market.
In fact the market will probably go up even more in nominal (i.e. non-inflation adjusted) terms if the Rats win. As the great economics writer, Henry Hazlitt, pointed out, "The stock market went up billions of times under the Weimar Republic. Unfortunately, the cost of everything else went up billions of more times."
True, but what has kept business on the sidelines is uncertainty. With Democrats fully in control, business had no idea what wacky socialist idea they were going to pass next, so why invest?
Gridlock, while not ideal, means Obama won't be able to get through the most extreme parts of his Marxist/socialist agenda so there will be more investment, more jobs and more recovery, even if the GOP can't actually pass much of what they want - the Democrats won't either.
The irony is that, once the economy starts to recover thanks to this huge GOP win, it will be Obama and the Democrats who will rush to every microphone to claim credit and say their policies worked but that they just took a little longer than they thought.