November 8, 2006
IDIOTIC CONVENTIONAL WISDOM WATCH....Somebody shoot me. Here's our first story of the day claiming that the financial markets are tanking due to fears that Democrats will wreck the economy. Sheesh.
—Kevin Drum 11:41 AM
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Yes, I'm sure it's a complete coincidence that the markets are tumbling after Democrat victories. Kevin Drum knows more about economics than a legion of economists with decades of experience and a wall full of advanced degrees.
Posted by: American Hawk on November 8, 2006 at 11:44 AM | PERMALINK
Morning losers!
Posted by: Thomas2.0 on November 8, 2006 at 11:46 AM | PERMALINK
Yes, I'm sure it's a complete coincidence that the markets are tumbling after Democrat victories. Kevin Drum knows more about economics than a legion of economists with decades of experience and a wall full of advanced degrees.
Too funny AH. Kevin doesn't even try to refute the EVIDENCE that stocks for both Japan and Europe went down immediately after the libs won some seats.
Posted by: Al on November 8, 2006 at 11:46 AM | PERMALINK
So, AH and Chuck, just wonderin': do you get paid by the number of posts you make or the number of words per post?
Posted by: Wonderin on November 8, 2006 at 11:47 AM | PERMALINK
I miss Al and Hawk already. C'mon guys, we'll only poke a little fun. Perhaps siomeone could post a good parody of Al like "The recounts will show that the Dems have failed to retake the House."
Posted by: ecoboz on November 8, 2006 at 11:48 AM | PERMALINK
IDIOTIC CONVENTIONAL WISDOM WATCH....Somebody shoot me. Here's our first story of the day claiming that the financial markets are tanking due to fears that Democrats will wreck the economy. Sheesh.
I'm not sure that is as much idiocy as that description is a reflection of a rather common distorted view of what constitutes "the economy"; its not unreasonable to expect that Democrats might reduce the extraordinarily favorable relative treatment of capital, and that that might, in the short term, reduce the attractiveness of investment in the capital markets versus other uses of money. So, its not entirely unreasonable to see a threat to the capital markets that are often conflated, in certain circles including much of the media, with the broader "economy". Sure, any kind of "tanking" would be an irrational self-feeding anticipatory overreaction, but that's hardly unusual in the capital markets, either.
Posted by: cmdicely on November 8, 2006 at 11:49 AM | PERMALINK
Wish I was in the Bracket that will get there taxes raised.You guys a little bitter today.?
Posted by: Thomas2.0 on November 8, 2006 at 11:49 AM | PERMALINK
I have to hand it to al and hawk for showing up today. They just don't get it that the republican party went crazy and that's why they were given the boot. Oh well, thinking Americans got it.
Posted by: f the trolls on November 8, 2006 at 11:54 AM | PERMALINK
Thomas-- The feds already want 35% of my income, and the state takes at least another 20% or so. Factor in the largely invisible cost of regulation and other stealthy wealth-redistribution laws, and about 3/5ths of my income is already going to the government. How much more do you guys want? 75%? 80%? 95%?
Posted by: American Hawk on November 8, 2006 at 11:56 AM | PERMALINK
Thomas2,
Wish I was too
Posted by: wishIwuz2 on November 8, 2006 at 11:59 AM | PERMALINK
How much more do you guys want? 75%? 80%? 95%?
Enough for you to be unable to afford broadband, I guess... but you're a special case.
Posted by: latts on November 8, 2006 at 11:59 AM | PERMALINK
Well, well, well. The morning "sell - off" is no more. In fact, the NASDAQ, DOW and S&P have recovered from their morning lows. And, if you pull up charts of all three indexes -- all three are rather bullish. And you will notice that they began their bullish course when it became apparent that the Democrats might win at least one branch.
Historically the markets have liked gridlock. One only has to look to the 90's for a perfect example of that.
But -- for all of those still under the wrong impression that only Republicans are good for the market -- I ask you to take a look at the Dollar and the gold markets. Dollar down -- gold up. Which means -- your dollar is worth less and people are hedging against this by buying gold.
Posted by: Ack on November 8, 2006 at 12:03 PM | PERMALINK
Are Republicans or Democrats Better for the Stock Market?
by Jeremy Siegel, Ph.D.
Tuesday, March 21, 2006
....Since 1948, Republican Administrations have controlled the White House 57.2 percent of the time. But during the period that the GOP was in office, stock returns have averaged only 9.53 percent per year, while under Democratic administrations, stocks returned 15.25 percent per year, more than five percentage points higher.
Stocks did best over the 8 years of the Clinton administration, with stock returns at 19 percent per year. Stock returns were above average during the Truman, Ford, Reagan, Kennedy, Eisenhower, and Bush Senior administrations. And stock returns were only slightly below average during the Carter and Johnson Administrations.
By far the worst stock returns came under the Republican administrations of Richard Nixon and George W. Bush. Of course, even George W and Nixon cannot compare to the Great Depression era stock returns during the Republican administration of Herbert Hoover.
During the 69 months from the election of President Nixon in November 1968 through his resignation in July of 1974, stock returns averaged minus 1.32 percent per year while inflation exceeded 6 percent. Similarly, during the 63 months since the election of George Bush in November 2000, stock returns have been negative.
http://finance.yahoo.com/columnist/article/futureinvest/3022
Posted by: Stefan on November 8, 2006 at 12:05 PM | PERMALINK
Why is that idiotic?
Because a 1/2 day of stock market flucuations
do not indicate a meaningful trend (unless you are an idiot).
Because trying to find a single cause for the millions of transactions that make up the stock market is ridiculous (unless you are an idiot).
I'm sure it's a complete coincidence that the markets are tumbling after Democrat victories.
Will you consider it a coincidence if the stock market ends up today ? tomorrow ? next week ?
Posted by: Stephen on November 8, 2006 at 12:07 PM | PERMALINK
How much more do you guys want?
Somebody's got to pay for the war (and six years of Republican excess)
Posted by: Stephen on November 8, 2006 at 12:09 PM | PERMALINK
No, No, No
The Dems do not want to raise taxes.
They're going to continue borrowing money from the COMMUNIST Chinese.
The reason for this is that a whole bunch of conservative Dems were elected and that's the way conservatives think.
.
Posted by: Determined to Strike on November 8, 2006 at 12:11 PM | PERMALINK
Nope, because it's just a theory, no more or less plausible than any of the literally hundreds of other factors that could be triggering fluctuations in the market.
Posted by: PaulB on November 8, 2006 at 12:14 PM | PERMALINK
Wonderin, Neither.
Ah, I see. Straight salary, then?
Posted by: Wonderin on November 8, 2006 at 12:17 PM | PERMALINK
Chuck -- the markets are already telling us exactly what they are thinking about the Democrats win. You should listen.
A morning sell off, which was followed by quick buying bringing us right back up. Morning activity is usually retail -- later morning and afternoon activity is typically institutional etc. Dumb vs. smart money.
Posted by: Ack on November 8, 2006 at 12:18 PM | PERMALINK
The markets went up yesterday on the hopes of a Democratic takeover of Congress.
Posted by: Hostile on November 8, 2006 at 12:18 PM | PERMALINK
Over at Angrybear, we've been following the Kudlow flip-flop parade. Last week, it was stock market up = prospect Dems would win. Yesterday, it was stock market up = prediction that GOP would hold power. Today? Well, the market was up because it was those Blue Dog Dems that were going to win.
Posted by: pgl on November 8, 2006 at 12:22 PM | PERMALINK
Balanced Budgets,That will do more for the Markets then youre borrow and spend policies.AH you don't make enough money to pay more taxes,Hell you might even get a tax break. yea!!!
Posted by: Thomas2.0 on November 8, 2006 at 12:24 PM | PERMALINK
The markets went up yesterday on the hopes of a Democratic takeover of Congress.
That's it exactly. The market has been rising all year as it became more apparent that Democrats would runaway idiocy and corruption in government.
Posted by: Nemo on November 8, 2006 at 12:26 PM | PERMALINK
Because a 1/2 day of stock market flucuations do not indicate a meaningful trend (unless you are an idiot).
Just because it isn't a sustained trend, doesn't mean it doesn't have a cause (of course, there's not a whole lot of evidence supporting any particular assumption about the cause, but then, that's hardly limited, historically, to ascribing political causes to fluctuations.) The cause ascribed is certainly plausible if utterly unsupported by evidence, especially for a short-term market-opening flutter (which, after all, could have been caused by investors expecting other investors to overreact.)
Posted by: cmdicely on November 8, 2006 at 12:26 PM | PERMALINK
would runaway idiocy and corruption in government.
...would stop runaway idiocy...
Posted by: Nemo on November 8, 2006 at 12:28 PM | PERMALINK
It's idiotic because it was well known in advance that the Democrats would take the House. If the markets were concerned about a Democratic victory, we would have seen indexes fall prior to the election.
Posted by: Brock on November 8, 2006 at 12:28 PM | PERMALINK
Pharmaceutical companies are still down over 3% at 12h30 US time, which explains why overall the market is down 25 bips.
Now is this a bad thing? Well no, it signals that investors think there's a good chance that Congress will force through something which will lower the price of drugs to Americans - and thus the drug companies have less profit. Let's face it - lower stock prices on certain companies (pharms and petro) are necessary for certain socially beneficial actions.
Posted by: a on November 8, 2006 at 12:34 PM | PERMALINK
The market was UP yesterday with anticipation of a Democratic victory at least with the House. This Dem victory has been predicted for several weeks now - it's not like it's coming out of the blue (pun intended). Of course this is bullshit.
Posted by: ckelly on November 8, 2006 at 12:35 PM | PERMALINK
I take it Stephen / Stefan, you don't buys cmdicely's political / economic theory that the Democrats might reduce the favorable relative treatment of capital, and that that might reduce the attractiveness of investment in the capital markets versus other uses of money?
Chuckles, you make me laugh. It is obvious you have no idea of what cmdicely is talking about, since you repeat his statement verbatim. But I guess that is no different than your usual post, taken straight from the Rove Talking Points fax every day.
Posted by: MeLoseBrain? on November 8, 2006 at 12:42 PM | PERMALINK
What has been fascinating about watching the markets -- was when in August and September -- the stem cell stocks began breaking out of a long down trend. And, sure enough, that is when the convential wisdom about the Republicans retaining control began to break down.
Around the same time, the DOW, NASDAQ and S&P 500 also began to recover from their most recent downtrend which began in May of this year.
Posted by: Ack on November 8, 2006 at 12:42 PM | PERMALINK
Maybe Chuck and AH oughtta check back here after they start winning elections.
Posted by: scarshapedstar on November 8, 2006 at 12:46 PM | PERMALINK
As an equity trader, I can tell you that the markets opened down and rallied all morning. In fact, over the couple months or so the markets have done pretty well, with traders knowing full well that dems would pick up the house and come close in the senate.
Only idiots like Chuck, American Hawk, and Al pretend that the markets are down because of democrats. Hey guys, why didn't you get short yesterday? Oh yeah, you're full of shit.
Posted by: tomboy on November 8, 2006 at 12:48 PM | PERMALINK
Also, any move in the S&P that is less than 1% can hardly be seen as anything more than a blip.
Posted by: tomboy on November 8, 2006 at 12:50 PM | PERMALINK
The markets rallied and were up until oil reserves were announced and oil prices surged.
Posted by: tomboy on November 8, 2006 at 12:53 PM | PERMALINK
I'd agree with tomboy, just to add one more point. I'm for a more equitable America. And I'm afraid that's not just going to happen by wealth creation - over the past decade or two, the rich have got a lot lot richer, and the rest of us are just not going to catch up under the normal rules of the game. A more equitable America needs some wealth destruction - and that means lower stock and real-estate prices.
Posted by: a on November 8, 2006 at 12:53 PM | PERMALINK
rumsfeld resigns... market soars.
Posted by: tomboy on November 8, 2006 at 1:01 PM | PERMALINK
Mid-day story on Yahoo News, courtesy AP's Tim Paradis: "Stocks fall on Dem congressional win" Only at the end of the story do you find out Russell 2000 index of smaller companies is UP almost twice as much as the Dow index drop. Your liberal MSM at work.
Posted by: Fermi Pyle on November 8, 2006 at 1:03 PM | PERMALINK
I say Bush should go with Lieberman for SecDef.
Fuck you, you pathetic loser.
I think what you meant to say is "I've been prancing around like an idiot saying Rumsfeld is the best Secretary of Defense ever and today's Democratic blowout has revealed me for the disturbed, tragic moron I am. The American people have repudiated everything I believe in. I'm loathsome. "
Posted by: trex on November 8, 2006 at 1:24 PM | PERMALINK
The cause ascribed is certainly plausible
Assign a single cause to a minor flucuation in
a 1/2 days worth of trading is a joke.
Reporting a plausible cause that is unsupported by any evidence is idiotic.
Posted by: Stephen on November 8, 2006 at 1:36 PM | PERMALINK
I say Bush should go with Lieberman for SecDef.
It should be obvious that no one here cares what you say, Charlie.
Posted by: asdfg on November 8, 2006 at 1:39 PM | PERMALINK
This is what is known in logic class as "the fallacy of causality."
It's not the election. It's almost certainly profit taking from the markets' "historic highs." That's what usually follows "historic highs."
Posted by: Russell Aboard M/V Sunshine on November 8, 2006 at 1:54 PM | PERMALINK
At 2:00 the Russell 2000 is up, Nasdaq is up,
and the S&P 500 is up...Must be because the markets love the Democrats "favorable relative treatment of capital"
Posted by: Stephen on November 8, 2006 at 2:07 PM | PERMALINK
GO NASDAQ!!! Pelosi rally!!!
Posted by: tomboy on November 8, 2006 at 2:27 PM | PERMALINK
Because lord knows that the freaking stock market never went down the Repugnacious ones held the house.
And if things were the status quo instead of the Thems winning, and the stockade market went down anyways, what could that possibly portend?
Maybe it just means we are all frelled.
Posted by: an ominous cow herd on November 8, 2006 at 2:52 PM | PERMALINK
Perhaps it just all the soon to be "convicted" in the REPUG party cashing out while the shredders get rid of all their potentially subpoenead records!!! That's where the money IS...so they may be heading for the hills!!!
Posted by: Dancer on November 8, 2006 at 3:26 PM | PERMALINK
Yeah, the last thing the markets want is a return to that 16% a year stock market growth we had under that damned Dem Clinton. Good gosh, we can't take that again! It would ruin the economy!
Posted by: oops on November 8, 2006 at 4:10 PM | PERMALINK
where are the stupid idiots Chuck, American hawk, and Al now? A nice rally today considering that futures were very negative relative to fair value this morning.
You guys are such hacks.
Posted by: tomboy on November 8, 2006 at 4:33 PM | PERMALINK
Wall Street ended higher Wednesday, with the Dow Jones industrials setting another record close
Posted by: Conservatives are idiots on November 8, 2006 at 4:36 PM | PERMALINK
Conservatives are idiots beat me to it. Someone let Daniel know that the US stock markets increased (slightly). And now MSNBC is saying the Dem victory was the cause of the "record" DOW closing? No mention that inflation-adjusted, we are still far from the record in real terms. But if Nancy Pelosi can get PayGo restored - perhaps we will see real records. I wonder what spin we will hear from the flip flop crew over at the National Review when this happens!
Posted by: pgl on November 8, 2006 at 6:51 PM | PERMALINK
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