Watch the DOW the day after the election. I predict the markets will react positively once we have a check on Obama's irresponsible spending.
Speaking of spending, beware the term "quantitative easing", also known as QE2. This is printing money at a wild rate and flooding it into the economy. This is the Democrat plan, and they are totally isolated in the world. G20 leaders in Toronto earlier this year rejected Obama's spending ideas, and nearly all governments in the world, and all 50 of our states, are decreasing spending. In case you weren't aware, when your income drops, you must also drop your spending or you go bankrupt. Somebody tell the president.
Expect the New York Times, the official mouthpiece of the far left, and their radio equivalent, NPR, to continue to push QE2. Sensible people everywhere need to reject this scheme.
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See, the response is likely to be contradictory. The markets have already priced 500 billion of QE2 into their prices. Any less, and the market falls. More? It rises, but the dollar flatlines.
Tonight (election night) there seems to be a renewed flight to precious metals, which I've blogged about. Wouldn't be surprised to see commodities like oil and wheat go up too. They're safe havens in choppy waters.
Much as the markets dislike tax-and-spenders, they don't appear that keen on the Tea Party either. Can't say as I blame them. But they have successfully reverse-taken over the GOP, so the markets are looking at the ramifications of a lame duck presidency and some crazies elected to the fiscally responsible side.
All they can be sure of is the dollar falling, so right now, that's where the money's going, not into the Dow.
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