"A government big enough to give you everything you want, is big enough to take away everything you have"
Thomas Jefferson

Thursday, November 6, 2008

Market Tumbles

The stock market has taken its worse two day tumble, between Wednesday and Thursday, since 1987.

Read Bloomberg here

A few detractors might be quick to point out Obama's victory may be the reason for the tumble, but no significant evidence could ever be produced that would lay blame at the feet of the chosen one, especially given the recent fluctuations of the market. Although, it is quite a coincidence, and what most likely remains true is that Obama has no magic bullet in his arsenal to slay the dragon, therefore the market corrective actions will continue to stumble around as Rome burns.

UPDATE: Analysts were saying on TV last night the market sell off could be associated with Obama's proposed  increase in the capital gains tax.


Anonymous said...

I hear the government is going to take control of our 401ks anyway, so whats the difference how much they are work?

Let's just see how far the market can go. I'll be watched by government bureaucrats, so we will likely be very happy with the outcome. Health plans are next.

What, were you people doped up or something on Tuesday?

Earthbob said...

Uncertainty is the major contributor to the Market's fluctuations.

The President Elect is subject to Market reactions like this when different voices from Congress express their views on how to remedy these dire circumstances.

This is another reason why it is important to select key people as quickly as practical.

The next step is to get an economic agenda prepared to go before the Congress on January 20th. His agenda.

Reagan had his agenda, Carter did not. President Carter found the Congress setting his agenda, as his was not formulated.

Anonymous said...

That is interesting, EB. I have to think about it cause I'm a slow thinker. But you might be right.

As far as 401ks. I stopped putting in to them. The folks will take care of my retirement. No sense in doing for myself.

The fun begins.

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