The Stock Market is getting crushed. If we don’t get a recovery soon, this can have far reaching impact, and even set us into a recession.
Less wealth=less spending=economic slowdown=recession.
The market hates uncertainty.
Somebody needs to take one for the team, and bow out quickly. I don’t care who anymore.
What I don’t get is why either of them wants the job at this point. Whoever wins is going to be faced with one of the most partisan, contentious administrations ever. I’ve been waiting for them to call each other up, each trying to concede before the other one does. (“I insist, really; we don’t need a recount.” “No, you won the popular vote! Florida should be yours!” “No, really . . .”)
Two words: “buying opportunity.”
From what I’ve heard, most of the sell-offs have been from foreign investors who don’t quite understand our system and are a little spooked by the situation in Florida. When the whole thing gets worked out, those investors will return to the market.
No need to panic.
Spoke:
The problem is we’ve already had two big buying opportunities, one in May, and one in October. Both saw a lot of buying. That cuts into capital out there willing to come into this market. We’ve already used our one-time bumper, twice.
In another thread, John Corrado posted asking GWB to give up. I was quick to respond that as long as GWB is in the lead it is in the country’s best interest to NOT concede the election.
The only thing this mess can give us more frightening than mass confusion, is the notion that a losing (or trailing) candidate can become president by being the bigger bully.
Now before anyone gets their panties in a wad, I’m not accusing either CANDIDATE of being the bully. But behind the leadership of Jesse Jackson and Representative Wexler the Gore supporters are certainly trying to out-bully the Bush supporters.
When I was in the service it was illegal to be homosexual.
Then it became optional.
I’m certainly glad I left before it became mandatory!
Hmmm – seems to me that a couple of significant players in the tech world have announced disappointing quarterly numbers (Dell, HP).
Why do people think teh drop is caused/seriously affected by the election? The country’s leadership situation now is not significantly different from what it was on Novermer 6.
THe market hates uncertainty. The drop started before the bad earning, but immediately after the election.
My understanding is that the “wealth effect”, by which the stock market affects the general economy, is thought to be small. Believe it or not, most studies of the great depression don’t give a leading role to the 1929 stock market crash. (eg Temin (1976), Kindelberger (1986), Romer (1993)).
More recently, the 1987 stock market crash was not followed by a recession, probably due to Greenspan’s timely monetary intervention.
(Unsolicited opinion: Those who are planning on selling stocks to raise funds for purchases to be made over the next couple of years should probably rethink their portfolio strategy. Stocks are a long term investment. (Except for day traders, who go “short” as well as “long”.) Unexpected events can occur, and the business cycle has not disappeared, IMO.)
Addenda:
The S&P 500 closed down 1% today at 1351, above it’s 3-month low.
Day Traders go broke.
Besides this is just a recession after the boom of the internet stocks. Back then it was so easy to make money even day traders did. Now it will be hard. So we would need some new form of mass communication or transportation to boost it up again.
Didn’t you guys hear? Both of them conceded, and Clinton’s going to remain president for another four years, until they have the next election and this all happens again.
spoke-'s right. I heard it’s mainly Asian investors, and to a lesser extent, Europeans that are selling out.
How about my silly idea? Gore concedes to Bush. Cheney drops out, and him & Bush release their electors, with instructions to vote for Gore for VP. Lieberman also drops back into the Senate. Thus, the Senate will be 50-50, with Gore being able to cast the decieding vote. Bush will be unable to pack the SCOTUS. Bush will also have to be very very popular, ie some tax cuts for that voters, or he is gone in 4 years. Neither side loses. Stock market rally.
I object to the stock market rally.
Setting aside the practicalities of distrust, etc., I suspect that the Secret Service may not be too keen on your plan. Having POTUS and VPOTUS belonging to different parties would only encourage the psychos, who have ready access to substantial firepower in the US.
I also wonder whether the VP would keep his office in the White House: regardless, I imagine that Gore would become the most “out of the loop” VP in modern history.
Kudos for your creativity though.