A Cynical look on the Press Conference

The market has suffered violent and volatile movement over the past few days. The first two days after the election, the DOW lost an entire 10%.
Today, Obama had his first press conference as the President-Elect. During this time the market was in free fall as he talked about more bailouts for dried up, bureaucratic companies and more handouts or stimulus packages at the cost of the taxpayer. One sentence he uttered changed all of this however.

"I think that the plan that we've put forward is the right one, but obviously over the next several weeks and months, we're going to be continuing to take a look at the data and see what's taking place in the economy as a whole."

As commented upon by CNBC news reporters, many hope that this means he will hold off on raising the capital gains, as well as other taxes, for a time. The mere hope that Obama might not raise taxes the second he steps in office not only reversed the direction of the market, but sent up the DOW to positive territory to close at +248.02 8943.81. Obviously, this show us a very proportional correlation between market direction and taxes,but it also lets us know what direction we are going in as a whole. Although people hope he will not raise the taxes, he most certainly will. Higher taxes on the wealthy was one of the key points of his agenda.

The Bush administration promised a smaller government, and instead what we got was a vast increase in government spending. These failures have been so great that we have been wallowing around in our own wasteful spending for quite some time.

So we have finally gotten "The Change We Need"
In other words, we have replaced our dirty diaper with a new one. Maybe what we really need is to grow up and start using the toilet.

Note: Copy of full speech transcript in comments.

A Brief Cynical Look at the Economic Condition After the Election

Remember remember the 5th of November...

Today I will focus on the immediate economic implications of the election.
To the surprise of many Obama supporters, and especially to the media which seemed to ignore the connection, the DOW closed 486.01 lower to rest at 9,139.27. Influenced almost entirely by the election, which is evidenced by the inactivity of the past couple days leading up to the election, the market lost an entire 5.05% of it's value.

Oddly enough, even many Eco-friendly businesses that would benefit from an Obama presidency in the form of subsidies took a dive in stock price:

Evergreen Solar, Inc. NYSE: ESLR 4.39 -.90(-17.01%)

SunPower Corporation NYSE: SPWRA 32.99 -17.51(-34.67%)

Solarfun Power Holdings Co., Ltd. (ADR) NYSE: SOLF 7.36 -1.59(-17.77%)



Based on simple economic principals, it would make sense that the market did not like Obama winning the election.

-Raising Taxes In general,harms the Economy.(As agreed on by at least 95% of Economists)

-Capital Gains Tax (It was shown during the Clinton Administration, when the capital gains tax was lowered, that the Capital gains tax has such an impact on how much people invest that when this tax is raised the government actually takes in LESS money. So in addition to harming the economy, the government takes in less in tax revenues: A lose, lose situation)

-Income Tax (Biggest Increments on the Highest Tax brackets)
-Dividend Tax
-Inheritance Tax (I hope you weren't hoping of leaving anything for your family)

Although some liberal media would like to tell you differently, Obama is in favor of the largest tax increases in history since the birth of the income tax. The capital gains tax, income tax, dividend tax, and the inheritance tax are all on his agenda for large hikes. In addition, he would like to propose a few taxes we never had before:
-Extra taxes on any home over 2400 Sq ft.
-New gasoline taxes (this will make gas more expensive)
-New taxes on other natural resource consumption (Heating, Electricity, ect.)
-New taxes on retirement accounts
-Social Medicare Taxes

Based on this, we can cynically conclude that the stock market is in for hard times.