Wall Street Furious, Dumps Huge Amounts of Money and Support for Republicans – Huh?
Along with the Economic Collapse in the last years of the George W. Bush administration there was an equally devastating decline in the stock market. But just shortly after Mr. Obama took office the markets began to recover, and this past week they demonstrated continued strength and growth.
News of strong job growth, a three-year low in unemployment and other positive developments Friday pushed the Dow ahead 156.82 points, or 1.23%, to 12862.23, its first triple-digit gain since Jan. 3. The blue-chip index would have to rise just 10% to reach its record close of 14164.53, hit Oct. 9, 2007.
|Can Anyone Tell When George W. Bush|
Left Office and Mr. Obama Came In?
The Nasdaq Composite Index, dominated by surging technology stocks, jumped 1.61% to 2905.66, its highest close since December 2000, as hopes spread that global growth would be strong enough to boost demand for technology gear.
And while nobody, and we do mean nobody can forecast stock prices, the increase in the markets at least has the potential to continue
Despite stock gains of well over 20% since the autumn lows, many investors believe stocks remain reasonably priced and have room to rise so long as the worries about a European meltdown remain in the background.
So what about the politics of the situation? Well in 2008 Wall Street strongly supported Mr. Obama, having suffered through absolute agony under the prior Republican regime. They financial sector hoped that Mr. Obama would implement policies that would reverse the huge monthly losses in employment, stabilize the financial industry, produce job growth and economic growth, keep inflation under control, lower interest rates and keep taxes from rising. As it turned out Mr. Obama implemented policies that did reverse the huge monthly losses in employment, stabilized the financial industry, produced job growth and economic growth, kept inflation under control, lowered interest rates and kept taxes from rising.
Naturally the financial sector is horrified that Mr. Obama might be re-elected and is putting substantial dollars into the Republican party and into the Romney campaign. It is easy to hope that they get sufficient value for their money and that Mr. Romney wins and implements policies that produce the results of George W. Bush. It is what Wall Street deserves. Unfortunately though, that would take the rest of us down with the Wall Streeters so we would get what we don’t deserve.
So far, no one has a way around this dilemma.