Mr. Sensitive

November 7, 2012

Why The Market Is Selling Obama’s Re-election

Filed under: Uncategorized — lbej @ 14:24

The Dow Industrials are down 250 points today, this after I said the market wouldn’t care about the election results; while I think that will still be the case long-term (six months and longer), for the short-term I was clearly wrong.  The reality is that companies in industries most sensitive to regulation—banks and energy companies, in particular—poured hundreds of millions into PACs and individual campaigns in an attempt to defeat the Democrats and derail the process of re-regulation begun after the financial crisis.  They failed, and investors who were betting with them are understandably disappointed.  As I’ve said before, though, these are the schemers and the shysters who wanted a return to the Wild West of the Bush era, and they’re the ones who are high-tailing it out of town now that the sheriff has four more years to clean things up.  If those folks don’t find the market hospitable any longer, the honest businessmen running the majority of American companies should be relieved, not chagrined.  Is anyone outside of Wall Street sorry that the big banks wasted so much money trying to roll back reforms?  It’s nothing compared to the wealth they’d destroy if they were allowed–once again–to gamble with the American economy and the global financial system, knowing they can keep the profits and stick taxpayers with the risk.  That’s not hypothetical or hyperbolic–it’s what they did the last time a Republican was in the White House.  It now looks like they won’t get a chance to do it again for at least another four years, and that can’t be anything but positive.

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