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Stock Market is Dropping Like a Rock - Presential Election Related?

Well putting on my tin foil hat... I'd say that after wall street failed to buy a presidency through their favorite superpac/lobbying firm known as the US Chamber of Commerce, they are throwing a temper tantrum in order to try and control the political agenda. ie... the fiscal cliff stuff. Of course this is just me wearing my tin foil hat.
 
Betting on Romney was a huge mistake.
Betting on Romney isn’t the bank stocks’ (and they are leading this drop) biggest problem. The bigger issue, in the short term, is Boehner’s “no compromise” stance he took last night. WH + Congress only have a few weeks to hammer out a deal before the “cliff” cuts and tax rises kick in, so we are going through another gridlock induced panic.
 
This will be the new conservative narrative: hoping for industrial collapse.

Question: is conservatism officially completely nihilistic or what?
 
Betting on Romney isn’t the bank stocks’ (and they are leading this drop) biggest problem. The bigger issue, in the short term, is Boehner’s “no compromise” stance he took last night. WH + Congress only have a few weeks to hammer out a deal before the “cliff” cuts and tax rises kick in, so we are going through another gridlock induced panic.

I would agree in part on Boehners remarks and the gridlock induced panic, but more importantly the unknown of what is coming in the next 4 years is lurking in the backround.
 
I would agree in part on Boehners remarks and the gridlock induced panic, but more importantly the unknown of what is coming in the next 4 years is lurking in the backround.

Since the market is fabulously higher than it was during the Bush Meltdown, this appears to be a pseudoproblem in search of a solution.

By the way, 50% of equities are owned by the top 1%. 85% is owned by the top 10%. When the market falls, it only generally hurts the rich or near rich. Most Americans have little or no interest in the stock market.
 
I wouldn't call down by 2% "dropping like a rock"
 
…but more importantly the unknown of what is coming in the next 4 years is lurking in the background.
The “unknown of what is coming in the next 4 years”? How is today different from any other Wednesday?
 
I wouldn’t call down by 2% “dropping like a rock"
The bank stocks are getting hit much harder than that.

I know I shouldn’t underestimate people’s stupidity but…if you are managing a sizable stock portfolio I would expect you are good enough with numbers to have realized by yesterday morning that Obama was very likely to be elected. Thus I don’t expect Obama’s re-election is what is actually driving this. Rather I think it is Boehner’s reaction, and thus the anxiety around the likelihood of crap getting sorted out (or not) and deal getting done (or not) by the end of the year that is driving this.
 
Most Americans have little or no interest in the stock market.

About 40% of American households owning mutual funds make $49,000 a year or less.

They may not have as much as the rich, but I assure you, they are very interested. Some of them are even 47 percenters.
 
The bank stocks are getting hit much harder than that.

I know I shouldn’t underestimate people’s stupidity but…if you are managing a sizable stock portfolio I would expect you are good enough with numbers to have realized by yesterday morning that Obama was very likely to be elected. Thus I don’t expect Obama’s re-election is what is actually driving this. Rather I think it is Boehner’s reaction, and thus the anxiety around the likelihood of crap getting sorted out (or not) and deal getting done (or not) by the end of the year that is driving this.

The same people who knew Obama would win should also have known the GOP was going to win the House and the GOP is not going to roll over for a guy whose idea of bipartisanship will be "Suck it. I've won twice. Do as I command". We are going over the "cliff" unless Obama caves. The GOP House will not. Boehner wouldn't be able to get the votes even if he wanted to now. The short-term result will be business as usual--a year from now the wheels will be falling off the market.
 
The same people who knew Obama would win should also have known the GOP was going to win the House
EXACTLY.
…and the GOP is not going to roll over for a guy whose idea of bipartisanship will be “Suck it. I've won twice. Do as I command". We are going over the "cliff" unless Obama caves. The GOP House will not.
1) Compromise means cave? :shock: :(
2) Because they just don’t care? They would rather send the country down in flames? They tried to play that game of chicken over the debt ceiling last time around and eventually had to suck it in as they got throughly thrashed by the public opinion. Boehner beat enough of his caucus into line to get a compromise through. Not before doing enough confidence damage via saying patently stupid **** that the US Government got the unthinkable, a credit downgrade. But still eventually they had to work something out.

So I can understand someone not expecting Boehner to come out heading down the same path again. :/

P.S. There was other financial news coming out of Europe today, so how much this had to do with the US election is still open to interpretation.
 
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BTW Boehner signaling the potential for some movement.

Unfortunately for now the only revenue increase he’s willing to talk about at this point is the Sasquatch-esque voodoo economics version that Romney/Ryan was trying to sell.
 
The Dow S&P and Nasdaq is down over 2%. Betting on Romney was a huge mistake. I got about 40% out of equities prior to the election. It certainly should have been much more.

Too late to get your money out!

View attachment 67137471

MarketWatch - Stock Market Quotes, Business News, Financial News

You don't understand finance do you? Getting your money out right now would be a terrible decision, now is the time to put your money in so you can buy when its low and make money when it goes back up.

Buy buy buy!
 
BTW Boehner signaling the potential for some movement.

Unfortunately for now the only revenue increase he’s willing to talk about at this point is the Sasquatch-esque voodoo economics version that Romney/Ryan was trying to sell.

From the article (emphasis added: "U.S. House Speaker John Boehner said Republicans would be willing to agree to new revenue from a tax system that would generate faster economic growth and be accompanied by changes to entitlement programs."

That is the part that says there isn't really any movement. Which exact "entitlement programs" do you think the POTUS and the dems in the House and Senate would agree to changing? He might as well have just said, "Yeah we will raise taxes when you cut Obamacare."
 
Since the market is fabulously higher than it was during the Bush Meltdown, this appears to be a pseudoproblem in search of a solution.

By the way, 50% of equities are owned by the top 1%. 85% is owned by the top 10%. When the market falls, it only generally hurts the rich or near rich. Most Americans have little or no interest in the stock market.

True, for example most government employees retirement and pension funds are in the stockmarket. They are way too wealthy to be hurt.
 
From the article (emphasis added: "U.S. House Speaker John Boehner said Republicans would be willing to agree to new revenue from a tax system that would generate faster economic growth and be accompanied by changes to entitlement programs."

That is the part that says there isn't really any movement. Which exact "entitlement programs" do you think the POTUS and the dems in the House and Senate would agree to changing? He might as well have just said, "Yeah we will raise taxes when you cut Obamacare."
First off, “Obamacare” isn’t really an entitlement. At all.

Second off, President Obama has already said, what, two years ago now, that entitlement programs need work and must be part of the fiscal restructuring.

Third, as I said it wasn’t big movement. But that is largely because he’s still talking right now about the imaginary revenue increases that Romney just failed to sell the the US.
 
This couldn't be any sillier. The people who are freaking out about this one-day blip in the markets, blaming it on Obama, are the same people who have sworn up and down that Obama had NOTHING to do with the historic bull market we've been enjoying for more than three years.

Fly's on bull**** is what I'm thinking.
 
This is exactly why I don't invest money. It is a risk, like gambling. You are not guaranteed to make money. Why you would bet your money on Wall Street is beyond me.
 
First off, “Obamacare” isn’t really an entitlement. At all.

Second off, President Obama has already said, what, two years ago now, that entitlement programs need work and must be part of the fiscal restructuring.

Third, as I said it wasn’t big movement. But that is largely because he’s still talking right now about the imaginary revenue increases that Romney just failed to sell the the US.

LOL all poor people are entitled to free health insurance is not an entitlement LOL. For a second I thought maybe you were serious.

Second, exactly which Obama "restructuring" programs has he asked the Congress to pass that actually cut spending?

Third, Romney is not relevant. He lost. Ryan is relevant because he will now be a leader in the party and remains a Member of the House. Revenue is code for "taxes". He is not discussing "imaginary" he is saying if you want us to raise taxes you are going to have to cut spending too. No entitlement spending cuts, no new taxes.
 
LOL all poor people are entitled to free health insurance is not an entitlement LOL. For a second I thought maybe you were serious.
That is Medicaid. The Health Care Reform Act does direct more people to that, and Medicare, and provides a small measure for covering the transition between Medicaid and full self-purchase of insurance. But largely “Obamacare” proper isn’t really an entitlement at all.
Second, exactly which Obama “restructuring” programs has he asked the Congress to pass that actually cut spending?
For starters, there $716 million that R&R kept trying to make into something else during the last few months. Surely you’ve heard of that?
Third, Romney is not relevant. He lost.
Yup, and yet Boehner is trying to resurrect what he was selling. D’oh!

Revenue is code for “taxes”. He is not discussing “imaginary" he is saying if you want us to raise taxes you are going to have to cut spending too.
Actually he is indeed talking about imaginary revenue increases. Read down further in the article. That is exactly the same scam that Romney [and Ryan] were trying to run with claiming that reducing income tax rates by a 1/5 could be revenue neutral without putting the boots to the middle class, they were just far more coy about being explicit about it (even when called out on just how bogus the math was) because of just what a load of [retreaded, from the 70’s/80’s no less] horse apples it was/is.
 
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You don't understand finance do you? Getting your money out right now would be a terrible decision, now is the time to put your money in so you can buy when its low and make money when it goes back up.

Buy buy buy!

I have been investing, and in the stock market for many many years. Depending on your personal time threshold, your assets and investment strategy, it could be the time to buy, buy, buy. And it could be the right time to sell, sell sell, or it could be the time to do neither. Every individual has to make their own decisions. Since my mandatory withdrawals from a 401k start in 4 years and I am a 47 percenter with assets, I have been, and will continue to move out of the market. I believe the market is over hyped and the volatility of the last 12 years is too great (for me). I am not bullish on the stock market here or abroad, or the financial health of the US. And finally, in my opinion, even 4 more years of spending, spending, spending will be detrimental to the future of the US economy. And believe me; I hope I'm completely wrong about the future and financial health of the US.

Good luck on your buy, buy, buy investment strategy.

S&P 500.JPG

https://www.google.com/finance?q=INDEXSP:.INX&ei=aXObUMDJJsSXqgGS1gE
 
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