Smasharoo wrote:
Um... So they've prepared. Doesn't change the panic of the investors though. It's not like everyone doesn't know that the economy will go into the dumps if he manages to somehow win the election. High taxes and big government tends to do that...
They haven't "prepared". They've bet on Obama to win, by giving him the most money.
Even you don't believe that Smash. They're tossing money at Obama's campaign, hoping that this will allow them to have some influence later on, if he should become president.
Also, don't conflate what some large investors want personally, versus what's actually best for the industry they work for. I'm quite certain that Soro's isn't pumping money into Obama's campaign because he actually thinks that Wall Street will do better under him as president.
From the article you linked:
Quote:
It's true that the Republican-friendly securities industry has been sending the most contributions to Obama's campaign above all other contenders for months. But Wall Street is largely reacting to a mood change and antagonism toward Bush. Whatever happens come January, investors want to make nice with the party in power.
Quote:
The sentiment switch comes even as, from a policy standpoint, many Wall Streeters prefer what McCain has so far espoused. And that speaks volumes.
Quote:
Rutherford, a Republican, points out that the steady cash flow doesn't mean Wall Street is ready to break out the champagne just yet.
He says that Wall Street "should be scared of Obama," who has announced a number of proposed policies that Rutherford says are anti-business, including boosting the capital gains tax to somewhere over 20% from the current 15%.
Quote:
McCain has said he would keep the Bush tax cuts in place and cut the corporate debt rate, among other factors.
Obama wants to keep the Bush tax cuts in place for those not making more than $250,000 a year. He has also said that he wants to boost the capital gains tax. (For more details, click here).
Clearly, higher capital gains taxes would alarm Wall Street, said J. Stephen Lauck, CEO at Ashfield Capital Partners. But it's not clear that something like that could even make it through Congress, regardless of which party is in control.
Hah! Nothing says "we support you" like saying your economic policies are ok because you don't think that Congress will actually enact them.
Lol! You actually read this article and thought it somehow indicated that Wall Street is ok with Obama?
Wall Street as a group is pumping money at Obama, but *not* because they think he'll be good for business. They're doing so in order to try to prevent him from being too bad for business. They don't have to send much McCain's way because they're pretty confident he wont ***** things up too much.
And that's just the big guys. The average investor is certainly not of the same opinion as folks like Soros, Griffin, and Buffet. They're terrified of what will happen to their investments if he becomes president. Absolutely...
Quote:
Let's see, rising inflation, lost jobs, falling dollar. Yup, right where I said we'd be as a result of GOP fiscal policies.
You know what Smash? You're like a broken record on this. You do keep saying this over and over. And guess what? Every once in awhile the economic conditions do match your predictions. But most of the time they haven't.
A broken clock is still right twice a day Smash. That's pretty much you in a nutshell...
Quote:
When Obama raises taxes on the wealthy, the economy will correct as it has every time this has been done.
Ah. You say this, and then insist that there's no reason for those same people to be concerned about Obama becoming president? Oh no! That can't possibly have a negative effect on the market!
We're not talking about "the economy" (although you're just as wrong there too). We're talking about investors. The bulk of whom will be negatively impacted by the exact taxes you're talking about. Of course they're going to panic when they realize he might just become president and might just be able to impose those taxes on them.
It's exactly the kind of short term shock that will cause a sudden large drop in the market.
Quote:
I'm sure you'll attribute it to something else, though. The phases of the moon, anything, to cling to your delusional reality that you saving $700 in taxes somehow offsets the thousands you'll lose in home equity and equity value.
You're just really bad at economics Smash. In what world do you think that raising capital gains taxes will make the equity on my house increase? How exactly does that work Smash? There's *less* money available to buy houses if you raise taxes. Duh! It's not like the government entitlements are going to include the ability to pay 400k+ for a condo in a nice part of town.
Home equity increases as the market grows. The market grows because more people are willing to spend more money on property, both to live in and to invest in. They're always going to be less inclined to do so if the taxes they have to pay at the end are increased. Always. There's simply no argument you can make to try to claim that raising taxes will somehow make property values go up. It's not only moronic, but so obviously so that it's painful just witnessing someone trying to say it will.