The Dow Jones Average has experienced the largest two day drop since 1987, reminding us that our financial troubles are far from over. Jobless claims and a shrinking #economy have crushed earnings reports and stock prices. Overnight, Japan was down 6% and European stocks were down 5-10%. Russia is in trouble and China is not doing well.
Exxon, Cisco, Kroger, Tyco, GM, Intel, Blackstone, Amazon, Wells Fargo, all down. If President-elect Barack Obama has a plan for all this, now is the time to speak up since “change has come to America.”
Of course, many, including me, predicted that since Obama was part of the cause of our economic turmoil that his eleection would not solve the problems. Rather, electing Obama would deepen the problems.
It turns out that people on Wall Street are quite intelligent. The masses may have believed the lie that George Bush and John McCain were responsible for this mess but the smart folks know better. They can also read the tea leaves and predict the impact of “Spread the Wealth” on the economy and the impact of raising taxes on corporations.
By the way … will someone give the Obama leadership a basic lesson in macro-economics. American corporations has one of the highest tax rates in the world. When taxes increase, companies move jobs overseas and increase prices at home, passing the cost along to the consumer. If they cannot pass along the costs, companies delay hiring and/or lay off workers. Hmmm. Higher prices and fewer jobs result from increasing taxes on companies. Not sure that is what we want from a President.
See Hot Air and Bloomberg