I find it curious that re-electing the President, which was supposed to encourage the entie civlized world, has resulted in a rout on Wall Street.
Maybe that's what he wants.
And do you know why it tanked?
"But the main reason given by investors for the sharp decline was that Wall Street began yesterday to focus in earnest on the looming austerity measures that are set to go into effect at the end of the year. Current law dictates that the Bush tax cuts for all taxpayers will expire, as will the temporary payroll tax cut which was extended by President Obama and Congress in 2011. In addition, a round of cuts in military and so-called discretionary spending will begin in January.
Economists predict that if something isn’t done to modify these plans, it will suck as much as 4 percentage points of GDP growth out of the economy in 2013, enough to force it back into recession. ”The minute such a deal is cut, we’ll boom. If one is not cut – and soon – we may well double-dip into recession,” Robert L. Reynolds, president and chief executive of Putnam Investments told Reuters.
Read more: http://business.time.com/2012/11/08/ele … z2BeEN3QUo
Most of it brought about by the US Congress.
Blame congress if you like but the reason it tanked is because there is absolutely no reason to think that this president is capable of doing the job he was elected to do! We will never know but I guarantee the stock market would have shot up if Romney would have won.
Many have said that Wall Street would have preferred Mitt Romney to President Obama, But if you research it a little you will see that the stock market has flourished under the president — and under Democratic presidents generally. Since 1900, it has returned 7.1 percent annually when Democrats have occupied the White House, and only 3 percent under Republicans.
Mr. Carter was an exception. The market declined 0.3 percent in his first 1,368 days in office — a performance more than 68 percentage points worse than that for Mr. Obama.
Yesterday morning it was reported that even after Obama's fairly resounding victory stock futures were rising. They only started falling when it became clear that Europe's perpetual economic crisis was starting to affect German economic growth. European Central Bank President Mario Draghi also warned about the European economy. And investors started to get nervous again about the prospect of a Greek exit from the euro zone. All of those things helped conspire to send stocks down by a bunch in early trading.
The Dow collapsed 468 points on the day after Obama's election in 2008,
It went on to virtually double in value in the four years of his first term.
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