And so America commits suicide – all because it hates itself so much. Sad. Pathetic.

The voters have spoken — and so has the market. During the two days following Obama’s tragic victory, we’ve seen the biggest two-day drop in the market in over two decades. As no one should be surprised to see, we……

Add to this the fact that all of the Obama sycophants used the same growth assumptions about his economic and tax plan that were used to create the subprime disaster, and the fact that they never once mentioned that retirees and pensioners will end up paying more in taxes and you have the absolute perfect storm. People are going back to post depression “it’s safer under my mattress” logic. The Mayans may have been more correct in their calendar then you believe…that which will end in 2012 will be the age of greatness of this, our country

Maybe the scorpion won’t sting that frog.

shazbat on November 6, 2008 at 9:44 PM

Fair point. If it is in Obama’s nature to sting the frog, then he’ll drown. In that case, look for GOP seat gains in 2010.

The fact is that the narrative of the market now is Obama election. Thus he is responsible for the selloff

unseen on November 6, 2008 at 9:50 PM

The problem with narratives is that they are subjective and everyone has one. They tend not to be quantifiable or contain predictive power.

Today’s narrative seems to be that the jobs numbers were worse than expected but that the market had already baked that in, so no big sell-off in the futures.

Maybe there will be a little bit of a test for the Obama narrative if he speaks this afternoon following his financial summit and the markets are still open.

This one we need to start calling BS on in advance, as in TODAY.

RegularJoe on November 7, 2008 at 7:50 AM

Yes. The jobs numbers were terrible this morning and there will be more bad news between now and January. Obama will likely want to talk about the “Bush Recession” and the “Obama Recovery” if the market bottoms sometime in the next 6 months.

The problem is that any policies that Obama implements, no matter how inefficient, will likely be touted as successes based on the Dow level between now and 2012.

A secondary reason for the slide is that investors are converting some paper losses into real losses to offset captial gains because they expect higher capital gains taxes in the future.

I’m not sure he believes it’s possible for him to screw up, no matter what evidence there is to the contrary. Hell, he openly wants electricity prices to be astronomical. Maybe he wants the markets in the tank, too. The worse things are, the easier it is to preach the gospel that The State needs even more power to fix them.

Blacklake on November 6, 2008 at 10:52 PM

I think you’re onto something here. Narrative circa 2012: “When I took the oath of office, the Dow was 6000. Now, four years later, it’s all the way up to 7500, a gain of 25%! Can we talk about a 7500 Dow like it’s a great accomplishment? Yes we can!”

This one we need to start calling BS on in advance, as in TODAY.

dedalus on November 6, 2008 at 9:32 PM

while CNBC may try to find a reason for the days moves the fact is that the market moves to narratives. Once a narrative gets started it continues to move to that narrative until new information disproves it or reinforces it.
This summer the narrative was $4.00/gas was going to wreck the economy.
Last year it was subprime.
This fall it was $4.00/gal gas causing subprime to become worse. Credit Crunch was the bnarritive from mid sept until last week. Last week the credit started to flow again. Stocks rallied. McCain gained in the polls stocks rallied more. Than came Tues nov 4th and the narrative changed again. Obama got elected. Credit crucnh no longer matter. now it is higher taxes coming, recession made worse by trade and tax policies, wealth fleeing to tax heavens. socialism coming to wall street. the selloff will continue until the narrative changes. Could be tommorrow with abetter than expected jobs report. could be when the dow hits 7,000 and the narriative changes to a bear market rally.

The fact is that the narrative of the market now is Obama election. Thus he is responsible for the selloff

unseen on November 6, 2008 at 9:50 PM

Except we already know Obama’s energy plan is going to raise home energy costs and congress is just itching to make gas prices go up to get alternative energy in place that isnt efficient or competitive. As far as the credit crunch and Fannie Mae/Freddie Mac, dems were greatly responsible for that too. Lastly “redistribute the wealth” is what Obama believes in.

Dems own all three narratives—bad credit policy, bad energy policy, bad tax policy.

If Republicans can’t manage to gain seats in the midterms something is seriously, seriously wrong.

OT, but I just saw a news story that gun sales are up 30-40% in NC.

bilups on November 6, 2008 at 11:09 PM

I was talking to a friend tonight here in VA. He is a venture capitalist type. He is purchasing more arms. He said a well-known local store had “sold out of all AR-15 style semi-automatic rifles.” People were lined up to get more arms and ammo.

By the way, last night I watched WGN Chicago draw their daily 3 numbers for the illinois lottery on 11/5/2008…

6 6 6

NICTUUS! DOMINUUUS!

Mazztek on November 6, 2008 at 8:08 PM

I wonder who would play those numbers and won?

Look at the bright side, stocks are cheaper today than two days ago and maybe a steep sell off will make Barry rethink some of his socialist policies. You are right that “he owns it”, hopefully he won’t want to screw up what he now owns.

dedalus on November 6, 2008 at 9:32 PM

I’m not sure he believes it’s possible for him to screw up, no matter what evidence there is to the contrary. Hell, he openly wants electricity prices to be astronomical. Maybe he wants the markets in the tank, too. The worse things are, the easier it is to preach the gospel that The State needs even more power to fix them.

Not really much I can add here, lots of good posts. I can say this though. The company I work for (an insurance company) is in full panic mode. We are pulling cover on just about everything that moves. The thing that really makes me laugh about all this is that the worst has yet to come. Wait untill the emerging markets melt down, taking Europe with it. THEN things will get interesting!