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The US stock markets are down almost 2% today as the Wall Street dead-enders sort through the rubble of their world view. After all, Clint Eastwood and other conservative luminaries have been speaking in apocalyptic terms, intoning that the country "cannot survive" another Obama term. So today they have to wallow in their own rhetorical offal for a while. This is a great buying opportunity.

Just as these same people were dragged kicking and screaming into prosperity by Pres. Bill Clinton, despite guaranteeing (Kudlow) that the Clinton "tax-the-rich" budget would explode the deficit and plunge the country into recession, they were the beneficiaries of a prosperous 1990s.

Republicans may make good businesspeople and stock traders on a myopic short-term level, but they have absolutely no idea how to run a modern economy, and their brand of "free market" ideology has proven time and again to be ultimately counterproductive. The economy does better under Democratic leadership.

As such, I was worried about the prospect of a Romney/GOP victory for my retirement accounts & have pretty much been in cash for a couple years. Today, particularly with the Wall Street 2% discount, my inclination is BUY BUY BUY.

Republicans have been selling the "malaise" scenario and the Obama apocalypse for so long that today they are thinking that they have to go Galt, and stock up on dehydrated food and precious metals. The beauty of that is, it gives a lift to a bull run in the market, much as short-sellers do, as they are ultimately forced to capitulate and buy to settle their positions as prices move up against them.

It's said that the markets go up until the last sucker buys and go down until the last sucker sells. The suckers are now selling. FOX News has frequent ads for precious metals, probably now at a bubble peak, surely an audience calculation. Just when the GOP dead-enders and survivalists finally capitulate and cash in their fallout shelter supplies will be the time to sell stocks off, and whipsaw them both ways.

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Comment Preferences

  •  Fox Business is calling today the Obama Sell Off (4+ / 0-)

    They think that the market is shocked that Romney lost.  
    You can tell who gets their news from Fox by what they call a surprise.

    If cats could blog, they wouldn't

    by crystal eyes on Wed Nov 07, 2012 at 08:12:19 AM PST

    •  buying opportunity is right (1+ / 0-)
      Recommended by:
      Killer of Sacred Cows

      although as someone who has profited handsomely since the market was in the toilet in '09, I might suggest waiting until the fiscal cliff thing is resolved to jump in in any significant fashion. Uncertainty is your enemy. But the economy is picking up steam, housing is rebounding, and consumers are starting to spend again. The Fed explicitly said that one of its goals for QE3 was to bolster the stock market so folks would feel wealthier. I frequently watch Yahoo Finance commentary, and you couldn't help but notice how many Wall Streeters were mixing their political philosophy with their financial outlook. They'll get over it and see that there's money to be made. They don't rule the world like they thought - a pretty big come down I guess.

      •  Uncertainty (0+ / 0-)

        I don't agree with the idea, promoted lately by GOP political types as a way to bash regulation, that "the market hates uncertainty."

        Baloney! Markets operate and thrive on uncertainty and always have. If there was no uncertainty there would be few trades. Generally (not exclusively) one side of a trade thinks it's going up, the other side thinks it's going down--and thus we have a game.

        Note that Pres. Clinton passed his budget and the Gingrich faction tried to bring the country to a fiscal cliff in 95-96. That was a great time to buy, if one hadn't already.

        •  European anxiety (0+ / 0-)

          apparently is a big reason for today's decline. Just as it has been several times the last couple years. Quesions about bailouts and defaults and Euro exits have led to volatile periods where huge falls were followed by gains when the issue seemed to have been resolved. Will the House GOP be as intransigent as it was in 2011 and threaten to not cooperate on the fiscal cliff and raising the debt ceiling? Goolsbe on PBS last night was not sure and emphasized how dramatic the failure to resolve this would be. If you bought on one of the European dips before, you may have been rewarded. Personally I think the next couple months are gonna be rocky and am gonna wait for some singals that the gains in the U.S. economy are guiding the ship. The trend is your friend.

    •  Europe is in crisis, not the US; Fox never lets's (0+ / 0-)

      facts get in the way of ideology.

      The DOW is on a tumble because austerity programs encouraged by Germany are causing the EU economy to contract with increasing unrest among member nations.

      EC slashes growth forecasts
      The European Commission has slashed its growth forecasts for the eurozone, and predicted that Spain and France will fail to hit their deficit reduction targets.

      The new autumn economic forecasts (released at noon) are quite comprehensive, so here are a few "highlights":

      • Eurozone GDP to fall by 0.4% in 2012, grow by just 0.1% in 2013 and then by 1.4%in 2014.

      • Greece's GDP will fall by 6% in 2012, and by another 4.2% in 2013, followed by 0.6% growth in 2014.

      • France's GDP will grow by 0.2% in 2012, by 0.4% in 2013 and

      • Spanish GDP will fall by 1.4% in 2012, and by 1.4% in 2013, before growing by 0.8% in 2014.

      As flagged up this morning, those Spanish forecasts are rather more negative than the Madrid government's officials predictions.

      The EC also predicted that France's deficit would come in at 3.5% of GDP in 2013 and 2014, above the 3% target.

      For Spain, it predicts a deficit of 8% of GDP this year, 6% in 2013 and 6.4% in 2014.

      As the financial powerhouse of the Common Market, as Germany goes, so goes the European Economic Community.

      *Austerity is the opposite of Prosperity*

      by josmndsn on Wed Nov 07, 2012 at 08:41:54 AM PST

      [ Parent ]

      •  Draghi warns Germany's economy also contracting (0+ / 0-)

        Mario Draghi on the crisis

        1:15 PM GMT November 7, 2012

        Mario Draghi, president of the ECB, has delivered a clear warning to Germany that it is being threatened by the eurozone crisis and will benefit from a lasting solution.

        Giving a speech in Frankfurt today, Draghi said that the eurozone was in a pretty dire situation, and pointed to recent data showing Germany's small firms were suffering.

        Unemployment is deplorably high. Overall economic activity is weak and it is expected to remain weak in the near term. And the growth of money and credit are subdued.

        *Austerity is the opposite of Prosperity*

        by josmndsn on Wed Nov 07, 2012 at 09:13:29 AM PST

        [ Parent ]

        •  Europe has been in permacrisis for years (0+ / 0-)

          Wall Street could choose any given day to stage a flip out.

          This is about Obama and Warren--like a kid who doesn't realize the medicine is good for him.

          •  Futures Rise on Obama Re-election (0+ / 0-)

            Equity Futures were on the upside before the lousy economic news from Europe hit the wires:

            Futures Rise on Obama Re-election
            NASDAQ 11/7/2012 6:08 AM
            U.S. equity futures rose in early Wednesday trade as investors understood a second term for President Obama means continued easing from the Federal Reserve. President Obama won most of the key swing states including Ohio, all but clinching the election. However, it could be a week or two until the final results are known.

            *Austerity is the opposite of Prosperity*

            by josmndsn on Wed Nov 07, 2012 at 10:13:38 AM PST

            [ Parent ]

            •  Here's how Rick Santelli sees it on CNBC (0+ / 0-)
              GRIFFETH: Meantime, Rick Santelli, a safe haven play today?--a strong dollar, two month high there--the 10-year note today was rather weak, with yields plunging today, weren't they?

              SANTELLI: Oh absolutely, it was definitely a 'd' for dog auction today, but that's to be expected. There was no concession. If you wanted to buy it you were coming in at the end of the parade, because before the election, these guys were all buying puts. So they were getting short Treasuries, they started to get out, the auction wasn't good, we're down a dozen basis points, about a one-month low in the 10-year, bunds even bigger drops over the last couple of days, and I'll tell you one thing, Bill: the Draghi comments, the market is down primarily as the reversal of the positions put on for a Mitt Romney win, because if you look at all the news that was out of Europe before we opened, the markets were pretty tame until you came into our time zone.

  •  Republican Election Stimulus Program (RESP) (2+ / 0-)

    Citizens United backfired on the Republicans.

    Instead of buying power, the racist, xenophobic, homophobic, anti-feminist plutocrats wasted billions on Mitt Romney.

    On the bright side, 1%er money was redistributed as block grants to the economies of swing states, while getting nothing in return. LOL

    *Austerity is the opposite of Prosperity*

    by josmndsn on Wed Nov 07, 2012 at 08:19:33 AM PST

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