The American Spectator : The Spectacle Blog : Obama Kills the Economy

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So today the Dow is down about 500 points. Yet I bet not a single news story about it tomorrow will attribute the drop to a negative reaction to yesterday's elections. Not one. Well, I will do so. The market knows Obama-biden-Pelosi-Reid-Frank spell economic d-o-o-m. But here's what will happen: As the economy continues to tank into next year, Obama and the media will play it as all Bush's fault and it will just give Obama leave to insert government more and more into things and spread more and more wealth. And possibly curtail more freedoms while doing so.

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John Thacker| 11.5.08 @ 5:53PM

There are a few AP articles that bring it up as "investors ponder Obama Administration.

Captain America| 11.5.08 @ 6:28PM

But we were lead to believe through news reports that the market had factored in the potential damage to the economy from a President Elect Obama. Let's see what tomorrow brings.

Bob| 11.5.08 @ 7:01PM

Quin, the market is not like politics, investors had already priced in Obama's victory. Remember, there was a 93% chance that he would win according to the oddsmakers. Today they were just taking profits from the previous days run and heard about the loss of 100-200K jobs in advance of the report coming out on Friday. This kind of volatility is common these days. Please get a grip of yourself.

Blog Goliard| 11.5.08 @ 8:04PM

I would guess that we're going to have to wait somewhat longer than 18 hours for Obama to start being successfully blamed for bad economic news, instead of Bush.

Based on the experience of the outgoing President...I'd say check back again this time next year.

Based on the example of one Franklin Delano Roosevelt...I'd say give it another 40-50 years.

Liles| 11.5.08 @ 9:20PM

It is blatently obvious that the Obama presidency was already factored in. If the market was falling for that reason alone it would have fallen yesterday as it was pretty obvious what was about to occur.

Instead, the election is now over and the true crappiness of the economy is being factored in. No president-elect can do anything about the crap-hole we're in right now.

iamse7en| 11.5.08 @ 10:15PM

It's tough to single out one factor in the determinants of stock prices, but I can tell you this: if McCain had scored the upset, the DOW wouldn't have gone down 500 points...

Jay| 11.6.08 @ 6:50AM

Obama will be the best thing for the economy. He will increase taxes to slow investment; he will spend like a drunken sailor in a whorehouse; he will cut the military and we will be attacked again; he will double the amount of money in circulation and we can have inflation; he will increase unemployment up past 10% and he will have his "Civilian Homeland Defense Force" to make sure we're all happy and if not, beat us until we are. He will cause electricity prices to skyrocket; health care costs to shoot up like a rocket and the quality to plummet.

Americans have seen the promised land and are about to live in it.

Jason Smee| 11.6.08 @ 8:53AM

As someone w/ market experience I agree that Obama was already priced in. Funny thing is that in Chicago, the Tribune hands out a free daily newspaper that most young professionals read in the morning (combo of celeb news, sports and minimal news coverage). Today it mentioned that the market had fallen, but it mentioned by about 350 points, not the actual 486. In addition, you might want to look at what one analyst (one of the few who has been pretty correct throughout this whole mess) has to say about the near future. We're in for a mess and all we can do is pray that God guides this country and the world through this mess.
http://dealbook.blogs.nytimes.com/2008/11/05/whitney-fails-to-see-how-obama-will-help-banks/

WendyG| 11.6.08 @ 10:25AM

And he's stiffing his campaign workers too (see new story up at Drudge.) Too funny!

Ned| 11.6.08 @ 10:30AM

While listening to Rush yesterday, the top of the hour news report (ABC) the reporterette gleefully talked about the price of gas and energy prices being lower in the country. The last thing mentioned was the stock market, kind of like an afterthought. Pre-election this order would have been reversed and the price of gas and energy ignored.
I told my kids that things will start to look up now, at least people’s perception of things, since it is no longer necessary to bombard the casual listener of news with negativity.

J David| 11.6.08 @ 11:43AM

Apparently Obama was NOT *priced in* because the percentage drop so far today is getting progressively uglier, and projected employment cuts deeper...

J David| 11.6.08 @ 11:45AM

And why did the market rise sharply during the election day? I'm thinking that several optimistic articles from right-leaners had convinced buyers McVain might pull an upset...