Friday, October 10, 2008

As Obama Rises In The Polls

What I am about to say is conjecture on my part. It is based on reading between the lines on what some key business people are saying in interviews on business networks like CNBC. It might just explain why the stock market hasn't responded favorably to all the financial measures being thrown at this credit crisis.

I seriously think that there is a political component in the free-fall of our stock market and, subsequently, the world markets. If you really think about it, as Obama has risen in the polls, our stock market has fallen. Sure, much of it has to do with the credit debacle; but, the stock market continues to act as if nothing is being done.

From my personal and, I guess, ideological perspective, I see the potential that, beginning in January, this country will have handed control to the most anti-capitalistic, anti-business, pro-union, and pro-socialist government that we have ever seen in the history of the United States. I really believe that the stock market is panicking in the fear of that fate. With Obama, Pelosi, and Reid in control, our businesses in this country will be hit with stifling taxation. The regulation against business is sure to be over-the-top. The pro-labor measures, like the Card Check system for unionization, will absolutely cripple businesses internally. Don't expect low prices from companies like Wal-Mart anymore. Forced healthcare and fines for not providing it (the Obama plan), will cause many businesses, especially small businesses, to struggle to compete. They will have no other option but to raise prices to survive. Obama's mandated universal healthcare proposal won't actually lower healthcare costs but, instead, will cause prices to skyrocket as a result of the increased demand from a broader base of insured. The Obama/Democrat energy plan, which doesn't include drilling for our own domestic oil, will cause higher and higher fuel prices. In general, we might see less product and rampant consumer price inflation. Worse yet, we might even see the Democrats try to nationalize our oil companies in some idiotic attempt to rein in gasoline prices.

My guess is that the stock market will clearly voice it's approval or disapproval on the day following the election. If Obama wins and the market falls, what I have said (above) might be at the center of that response. In my heart of hearts, I cannot believe that a far left Obama Administration and a far left Congress will be anything but detrimental to this country's business environment. As always before, it's just my opinion.

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