Posted by
Gnostic Paladin on Friday, October 10, 2008 12:00:00 AM
Nobody seems to be able to figure out why the stock market keeps plummeting despite the warm, fluffy wad of socialism that was just signed into law. Let me propose the following: the insolvent businesses are banks and insurance agencies. Two of the largest owners of stock are banks and insurance companies. If the banks and insurance companies are selling their interests to remain solvent, the market will be driven down, regardless of the confidence of individual investors. The bailout could not affect the market this week even if it were a good decision--and socialism never is--and even if it had already been implemented, because the huge amount of shares held by these financial entities are simply to ponderous to move in and out of the market quickly.
Wise investors will see this as buying opportunity, and will make a LOT of money when the stock market recovers. And it should be kept in mind that the market will recover; the only question is how long it will take. It is unfortunate that people who are most concerned with the economy are tending to lean toward Obama... It should be remembered that the current crisis is not the product of "eight years of Bush mismanagement;" the economy was actually moving quite well until the Congressional election, when the Democrats took control of Congress.
It is Congress that has the most direct control of the economy, after all, and Barack Obama with a filibuster-proof Democrat Congress will take every opportunity to nationalize businesses and raise taxes. This will lead to job loss, revenue loss, expenditure increase, and a host of other troubles which will slow down economic recovery.