Dow Sees Biggest Two-Day Drop Since 1987 After Obama Elected

The biggest two day drop in twenty-one years.
James Pethokoukis is calling this “The Obama Correction.”

“We’re a long way from the end of the economic challenges,” said Mike Morcos, who helps manage $1 billion at Old Second Wealth Management in Aurora, Illinois. “Earnings next year are going to be significantly lower and estimates are going to continue to come down.”
The Standard & Poor’s 500 Index fell 5 percent to 904.88, extending its two-day loss to 10 percent. The Dow Jones Industrial Average retreated 443.48 points, or 4.9 percent, to 8,695.79. The Russell 2000 Index of small U.S. companies declined 3.7 percent to 495.84. The MSCI World Index of 23 developed markets lost 5.9 percent to 925.09. . . .
About 481,000 workers filed initial jobless claims last week, the Labor Department said today in Washington, exceeding the 477,000 projected by economists surveyed by Bloomberg News. The number of people staying on benefit rolls was the most since February 1983…
Earnings at companies in the S&P 500 that have reported third-quarter results fell 9.2 percent on average, Bloomberg data show. Analysts expect full-year profits to drop 7.7 percent, according to a compilation of analysts’ estimates.

The economy was already week, to be sure, but anyone trying to argue that Obama doesn’t bear some responsibility here is fooling themselves.
You can’t campaign on massive tax hikes (both those promised by Obama himself and those that will happen when Obama and the Democrats “roll back” Bush’s tax cuts) in uncertain economic times and not expect the market to react when you win the election.
People are pulling their money out of the markets and locking it up. Because it’ll be cheaper to take profits from investment now than under Obama’s big new tax rates. And those looking to invest are putting off their plans, because the tax implications for their potential returns are ugly.
This is the natural effect to the cause of higher taxes. Why anyone would be surprised that this is happening is beyond me.

Tags: ,


«
»
  • http://sayanythingblog.com/ likwidshoe

    We're getting "Change".

  • http://www.valleydeals.com/cgi-bin/board2/YaBB.pl Kevin

    What happened to "hope?" <img src='http://i38.tinypic.com/10366bm.jpg'&gt;

  • http://www.willisms.com/ Zsa Zsa

    Did people actually think that by electing a Socialist President it would help the economy? Duh! Spending and raising taxes and new Socialist programs are not going to do the trick!

  • sc

    You would think that all of the optimism with Obama getting elected would trump the stock market. They say that the stock market is forward-looking.

  • http://Array Mickey

    The stock market IS forward looking. They don't like what they see in Obama. This blood bath will not stop untill he FORMALLY, in writing, retracts his statements against capitalism. I for one refuse to invest during Obamas tenure. I'd rather put it in a CD and wait four years.

  • Bat One

    I have been asking for over 6 months for someone on the "progressive" Left to offer a cogent, knowledgeable explanation of how Obama's tax and economic policies will foster increased economic activity, growth, and private sector employment. Still no takers.

  • http://www.poorschmuck.net/ John D

    The economy was already week

    That's true. It was weak this week and it will probably be weak next week too.

  • http://ndgoon.blogspot.com/ goon

    It the stock market not liking NOBAMA.

  • Mickey
  • http://sayanythingblog.com/readers/author/realitybasedbob/ realitybasedbob

    <img src="http://i34.tinypic.com/2cnil2v.jpg&quot; border="0" alt="Image and video hosting by TinyPic">

  • Mickey

    bobby

    From my perspective, I can see why writers don't want *some* kind of response from you. It can be at times difficult to know if we're actually reaching you – if what you think is relevant is actually relevant – or if you've just made it up in your mind.

    One of the key goals of trolls on this site appears to be to try to make us think the latter, or to convince us commenters the same.

  • http://sayanythingblog.com/readers/author/realitybasedbob/ realitybasedbob

    Mickey

    From my perspective, I can see why the right wing has been thumped in the last two elections.

Create a SAB Readerblog


Recent Comments

Powered by Disqus

Blog Advice and Support
Installs and Upgrades
Theme Modifications
Custom Plugins
Theme Design
Conversions and Relocations
Hacked Site Recovery
Mobile Apps Development