Obama Makes History Twice in Two Days

That’s right Mitch, the Market didn’t exactly endorse Obama’s victory. In fact, Barack Obama made history two days in a row: the largest post-election stock market plunge in history.

Nov. 5 (Bloomberg) — The stock market posted its biggest plunge following a presidential election as reports on jobs and service industries stoked concern the economy will worsen even as President-elect Barack Obama tries to stimulate growth.

Apparently the market has a different idea as to what will stimulate growth. Does the market not think that raising taxes and expanding government are good things? Is the market wondering why Liberals and their followers haven’t learned their lesson yet?

History

Year Dow President-Elect

2008 -5.05% Barack Obama

2004 +1.01% George W. Bush

2000 -0.41% No decision: G.W. Bush v Al Gore*

1996 +1.59% William Clinton

1992 -0.91% William Clinton

1988 -0.43% George H. W. Bush

1984 -0.88% Ronald Reagan

1980 +1.70% Ronald Reagan

1976 -0.99% James Carter

1972 -0.11% Richard Nixon

1968 +0.34% Richard Nixon

1964 -0.19% Lyndon Johnson

1960 +0.77% John Kennedy

Draw your own conclusions…

28 thoughts on “Obama Makes History Twice in Two Days

  1. The best you can do? A five percent drop in the Bush economy is a good day. Next week you kooks will be pushing wheelbarrows full of cash around and investing in lottery tickets.

  2. St Paul paper has a Wash Post story. In the first paragraph they say:
    A) The economy is the worst since the Great Depression
    B) Obama can therefore spend money like crazy and everyone will be fine with it.

    Sigh. Now that the Messiah and San Fran Nan are in charge, deficit spending is cool again.

  3. So what you’re telling me is things like
    -Forces unionization
    -Trial lawyers gone wild
    -Forced health care subsidizes 100% by the employers
    -Higher corp income tax
    -Higher captial gains tax
    -More Sarbanes-Oxley type legislation
    -Higher energy prices (no drilling, no coal fired plants, no nuclear energy)
    -Spread the wealth instead of grow the wealth

    How does this make it hard to do business in the US?

  4. My broker is EF Huton and EF Hutton didn’t believe all those MSM polls showing a 90+% chance of a Hussein Obama maladministration, so in the three days leading up to the election when the DOW rose 400 points, we were selling short.

    As soon as the Obottom drops out, we’re gold, baby.
    /jc

  5. You’re reading too much into it. Most people had a good idea that Obama would win before the election. The political financial markets gave him a 90% chance. The financial markets had already absorbed the information that Obama was highly likely to win.

    On the other hand if McCain had pulled off the win, then you would have been justified in claiming that some of the price changes the next day had been due to the results of the election due to the fact that a McCain win was unexpected by the markets.

  6. 2008 -5.05% Barack Obama/ 1976 -0.99% James Carter

    So you are saying this is not like 1976 after all. 🙂

    I figured the drop to be associated with the unknown quantity that is every new president, combined with the unknown quantity of who exacty is Barack Obama.

    That was until I saw this:

    2000 -0.41% No decision: G.W. Bush v Al Gore

    Talk about an unknown quantity.

    Of course, in all fairness, the last month has been plagued with massive drops & increases. Perhaps it was going to happen anyway, & Obama’s effect was negligible… sort of like the internet economy of the 1990’s, it would have happened if a sock puppet was in office.

  7. “it would have happened if a sock puppet was in office.”

    There’s a joke there somewhere. Something something Cynthia McKinny something something.

  8. Lordy Roosh, you normally write decent stuff, but you’re straying into Mitch land now.

    As others pointed out, the markets were well aware Obama was going to win, and the fall yesterday had little to NOTHING AT ALL to do with Obama and you know it. Are you putting this out there because you only care about spin? I mean, you work in the industry, you should know this stuff. I expect it from Mitch, he’s both clueless and unwilling to cease with the drivel, but come on Roosh, you can do better than this. As I understand, this has to do with overall senses of unease, including concern about the European banking market with LIBOR running 350 Bps above FFE. There is a liquidity/credit crisis in Europe in part engineered, as Europe attempted to keep it’s troubled banks from overborrowing.. so the manufactured a credit shortage. Yesterday they cut LIBOR 150 bps, because they’re seeing that they have overreacted.

    The bottom line is, any tax policy change won’t happen for at least 8 months, probably not til FY2010, and candidly, profit is profit, whether you get it in Bonds or in Stocks, unless you’re going into Tax Free Bonds – and we’re seeing that of course, but hardly because of Obama’s victory, but rather due to the stock collapse (.

    I like you Roosh, but let’s be real and honest, this isn’t Obama.

    BTW, Shirt, I agree with your comments about Clinton and the 1990 internet boom, it’s good to actually see someone on this blog who grasped that.

  9. I realized that my comment about Bonds/Stocks wasn’t complete – apologies – the point is, people get profit in stocks or bonds (with a few exceptions), they are abandoning stocks because they are too volitile, not because of tax policy. Bonds pay much better right now, so the money is there, and they’ll be taxed on those bonds, just as they would have on the stocks. If they go to Municipal bonds, they’ll do it for safety, not tax avoidance (normally), but they sure as hell aren’t jumping out right now becuase of tax fears – that’s silly.

  10. Wait a minute!

    Penigma, do you realize that if you agree with me about the 1990’s internet economy & sock puppets, you are agreeing that free market essentials are what brought us the good economic times of 1995-2000?

  11. If they go to Municipal bonds, they’ll do it for safety, not tax avoidance (normally), but they sure as hell aren’t jumping out right now becuase of tax fears – that’s silly.

    That’s true for now. The Dems can’t raise taxes until Inauguration Day. selling stocks now & buying munis for tax avoidance now would indeed be silly.

    The same assumption can’t be made after January 20th.

  12. OK Maligna, I’m game. Let’s pretend you know something about the market and what moves it, and I don’t.

    they are abandoning stocks because they are too volitile

    Why are they volatile right now? What is weighing on the market yesterday and today that wasn’t weighing on the market three days ago?

  13. So, you’re not at all embarrassed to be this obviously biased?

    What caused the crashes last month? Welfare mothers and immigrants? Sex education? Gay marriage?

    Hello? I know you probably can’t hear me, but if you understand that we were already in a massive recession before the election, just blink your eyes.

  14. While interesting, the market movement probably had less to do with the election and more to do with market volitility.

    The markets have been moving this much on a regular basis even before Election Day.

    While it’s true that markets dislike uncertainty and often cause sharp declines, as much as I’d like to I’m not sure one can blame Barack 100% on this one.

    The election may be A factor, but it’s not THE factor.

    Furthermore, for the most part looking at one day in the market is meaningless.

    It would be like coming to Minnesota for one day in July and thinking that the weather here is sunny and 85 every day.

    Whether it’s yesterday or forty years ago, one needs to look at the days around it and look at the trends, and the trends are downward.

  15. One can argue whether the now 7% drop in the stock markets is statistically significant, but we can’t really argue whether they’re correlated pretty darned well with Obama winning. Let’s face it; prior to Wednesday, nearly half the nation was persuaded that McCain might pull it out. Now we know we’re wrong.

    And we are not buying stocks until we see whether he leaves well enough alone, or pushes the envelope.

  16. Bonds pay much better right now, so the money is there, and they’ll be taxed on those bonds, just as they would have on the stocks. If they go to Municipal bonds, they’ll do it for safety, not tax avoidance (normally), but they sure as hell aren’t jumping out right now becuase of tax fears – that’s silly.

    Peeve, are you sure you understand finance? I don’t think you do.

    A capital gains tax is nearly inevitable with BO and the Dem Congress. Such a tax would go in effect next year, so NOW is the time to sell anything you expect a capital gains tax on in the next 4 years.

    Running to Muni bonds is the right thing to do if you expect Federal taxes to increase! McCullough v. Maryland made muni bonds not subject to Federal taxes which is why they’re where the super-rich dump much of their assets to avoid taxes. Yes, the state can get you with state taxes, but you’re safe from Federal taxes. And right now it looks like open season on Federal taxes.

    Silly? That’s listening to you for financial advice.

  17. J – one comment – there really is no chance Obama can fix this situation – (meaning the economy) – certainly not by himself – I hope you all are willing to help right the country, and aren’t just going to create false expectations.

  18. there really is no chance Obama can fix this situation – (meaning the economy)

    that may be true but it was liberal fiscal policy that caused it and it is crazy to think that more of the same will fix it

    I believe one of the factors effecting the market of late is that investors think it unlikely that Obama possesses the ideology or courage to do what it takes to stimulate the economy (to the extent that government can and should).

    I think the market rather thinks it likely he will make it worse

    Pelosi and Reid aren’t helping much either and Obama hasn’t even been sworn in

  19. Joshua Norton II said:

    “So, you’re not at all embarrassed to be this obviously biased?”

    Embarrassed because of obvious bias? No. Perhaps if we spent our professional lives hawking our lack of bias, but no. What are each of our biases? You don’t know, but that doesn’t stop you from assuming much. *shrug*

    Now what caused the crash last month? You could go back and check because I think we discussed it, but I don’t think it involved any of your “interesting” suggestions.

  20. 9-10% down over 2 days now. Hopefully Obama breaks some campaign promises and listens to some people actually running a business before he acts.

  21. Joshua Norton The Deuce–

    It’s called a blog. You know, a place where people express their OPINIONS. Been around for six-seven years now. Have you heard about these phones that we have now that don’t need a cord?

  22. “She [Pelosi] said Democrats had no choice but to chart a centrist course. “The country must be governed from the middle,” she said.”

    Oh, gee that doesn’t sound so bad, does it. Maybe the party of Scrubs learned a lesson from CLinton’s first two years in office….ya think?

    “But Ms. Pelosi said Democrats could open the 111th Congress in January with efforts to adopt measures blocked by President Bush, including ones to expand the State Children’s Health Insurance Program and embryonic stem cell research.”

    pfffft. This is gonna be good!

    I’m going to be sending congratulations to the successful GOP congress critters, which will include the advice that the only time we want any of the reaching across the isles is to slap a moonbat.

  23. “there really is no chance Obama can fix this situation – (meaning the economy) – certainly not by himself – I hope you all are willing to help right the country, and aren’t just going to create false expectations.”

    And certainly not with the policies he’s proposing. FDR took what was looking like a recovery in 1936, & shot it point blank in the head with the very policies Obama wants now.

    Raising income tax on the wealthy & businesses. Allowing unions to run amok & further destroy business. Raised the estate tax to 60%, making it difficult to keep family businesses going. then there was the market uncertainty that FDR seemingly random actions inflicted. This is what FDR did in 1937, & it recycled the depression, holding it there until Tojo & Hitler gave us a reason to begin war production.

    Conservatives certainly should not help with that type of asinine economic plan. That would only allow the Dems to share the blame for their failure. Conservatives need to stand hard & fast for the true solution, a full return of free market principles.

  24. You know guys, with a moonbat majority in congress the single worst result will be a deliberate sweeping under the rug of the Freddie, Fannie and CRA catastrophy.

    You think Pelosi is going to undergo an investigation that points at her and Frank? not in this lifetime.

    It may well fall to the blogosphere to take the lead on this one…who wants to be the next Time Blogger of the Year?

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