Why Wall Street Fears…
Investors this summer have been placing their bets on an Obama presidency, and for the most part that hasn’t been good for the market.
Without giving him a chance to explain himself in detail on the campaign trail or at the Democratic National Convention, they are voting with their shares by tossing financial, health insurance, manufacturing and high-dividend stocks into the ash can, and are growing skeptical about energy companies as well.
It’s not that major institutional investors don’t like the man — far from it. He has many backers among the financial elite, including multibillionaires George Soros and Ron Burkle. And it’s not that there aren’t many other reasons for investors to sell stocks now, as the global economy tangles with the terrible twin beasts of bank deleveraging and inflation.
It’s just that Obama’s rhetoric on taxes and health care is scaring common wealthy people with large capital gains from investments made over the past decade, and a lot of them don’t want to wait around to see whether it’s just populist fluff that might be set aside once he takes office.
Aside from the populist rhetoric, does anyone know what his policies actually are? It’s not a question of “giving him a chance to explain himself;” for god’s sake, the man is running for President. He should be laying out for us his plan.
And this is comforting:
Plus, the Democrats who run Congress know that a weaker economy favors their nominee — and they are loath to pass banking or trade legislation now to improve the nation’s industrial standing over fears that it could backfire and give comfort to the Republicans.
Because, obviously, the health of their Party is more important than the health of their country.
But don’t question their patriotism!
Politics | Mr. Bingley | 
July 14, 2008 8:22 am
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What part of self-serving….err, politician did you miss, dearest uncle?
A weak economy favors Democrats and a terrorist attack favors Republicans. Both sides are playing to win at all costs. It’s disgusting.
That’s for sure, Rob.
People paid attention when Obama said he would raise the capital gains tax even though it would likely significantly reduce revenue, among other negative effects. It’s a matter of “fairness” to Obama, not economic common sense. That’s the way he wants to implement economic policy. The man is a walking billboard for the law of unintended consequences.