Originally Posted By Mr X <a href="http://www.nypost.com/seven/10132008/postopinion/opedcolumnists/an_obama_panic__133374.htm" target="_blank">http://www.nypost.com/seven/10...3374.htm</a> According to this, the market is crashing because "markets fear his policies". Any truth to this? Could an Obama victory spell doom for capitalism!?
Originally Posted By mawnck Since Obama's win is practically a foregone conclusion, one would assume that it has already been priced in to the market. Obviously the crash is entirely due to the New York Post itself, which has been releasing new issues non-stop ever since the meltdown started.
Originally Posted By Dabob2 Also, historically the market has done somewhat better, on average, under Democratic presidents than Republican ones. This is Rupert Murdoch's NY Post. 'Nuff said.
Originally Posted By mele I think things will get better just having a new president in office but will improve greatly when Obama wins. I think we all just want the current administration to get the hell outta there.
Originally Posted By EighthDwarf The market is so volatile because we have problems in our economy that are not being corrected. In fact, the recently enacted legislation appears to be worsening the situation. There may be some truth to the nervousness about Obama however. The Laffer theory suggests ANY increase in taxes, given where we are on the Laffer curve, would further worsen the economy. In fact, in theory we should be cutting taxes right now but considering all of the money the government is giving away, how can they possibly consider cutting taxes?? There is a great need for prudent spending right now at all levels. Government, corporate, personal. Not to mention debt reduction. And our leadership in government is showing us how we got ourselves into this mess to begin with.
Originally Posted By mawnck >>In fact, in theory we should be cutting taxes right now<< I think the current economic climate is God's way of emphatically discrediting that theory once and for all. >>According to Nobel prize laureate James Tobin, "[t]he 'Laffer Curve' idea that tax cuts would actually increase revenues turned out to deserve the ridicule with which sober economists had greeted it in 1981."<< <a href="http://en.wikipedia.org/wiki/Laffer_curve" target="_blank">http://en.wikipedia.org/wiki/L...er_curve</a> However, I do agree with your premise that the problems in the economy aren't being dealt with, which is causing all the turmoil.
Originally Posted By EighthDwarf "I think the current economic climate is God's way of emphatically discrediting that theory once and for all." Just my opinion here, but I really don't think taxation has anything to do with the problem we're in right now. We are heading into a recession spearheaded by reduced spending of the large American middle class. The middle class is dealing with plummeting home values, plummeting retirement account values and decreased job security. The less the middle class has to spend the deeper the recession will be. Cutting taxes on the rich (like Bush did) has proved to be less than successful. However, middle class tax cuts could be very helpful. But given our recent (and unprecedented)government spending spree, any tax cuts right now would seem irresponsible. Too bad.
Originally Posted By oc_dean >>This is Rupert Murdoch's NY Post. 'Nuff said.<< Yeah, no sh**! Nuff said is right!
