The Dow Jones Industrial Average plunged again today, making the post-election trading the worst two-day drop since 1987. Predictions from the market? It’s about to get even worse.
“We’re a long way from the end of the economic challenges,” said Mike Morcos, who helps manage $1 billion at Old Second Wealth Management in Aurora, Illinois. “Earnings next year are going to be significantly lower and estimates are going to continue to come down.”
The Standard & Poor’s 500 Index fell 5 percent to 904.88, extending its two-day loss to 10 percent. The Dow Jones Industrial Average retreated 443.48 points, or 4.9 percent, to 8,695.79. The Russell 2000 Index of small U.S. companies declined 3.7 percent to 495.84. The MSCI World Index of 23 developed markets lost 5.9 percent to 925.09…
About 481,000 workers filed initial jobless claims last week, the Labor Department said today in Washington, exceeding the 477,000 projected by economists surveyed by Bloomberg News. The number of people staying on benefit rolls was the most since February 1983…
Earnings at companies in the S&P 500 that have reported third-quarter results fell 9.2 percent on average, Bloomberg data show. Analysts expect full-year profits to drop 7.7 percent, according to a compilation of analysts’ estimates.
I’m not going to root for a failure of the economy as many of the left did in order to ensure an Obama win. Holiday sales are predicted to fall dramatically, many more Americans are going to lose their jobs, and the United States’ economic standing in the world will continue to decline. That’s not good news no matter how it would benefit you politically.
That being said, could Obama have something to do with this market decline? Absolutely. As Ace points out, economic downturns have been blamed on the incoming administration throughout history:
Bear in mind — the Clinton Recession began, of course, in November-December of 2000. Liberals, seeking to pin this recession on Bush, attempted to spin that inconvenient date by stating the markets were looking forward to Bush’s miserable failure economic policies.
Well, guess what? The markets are looking ahead to the Obama Administration’s economic policies. A higher capital gains tax and other crappy policies aren’t putting smiles on the faces of investors.
Via Hot Air.
by Stephan Tawney on Thu, Nov 6, 2008