here is an article on what potential effect a Dem majority in the House could have on the stock market


here is an article on what potential effect a Dem majority in the House could have on the stock market





here are a few other articles that take a somewhat different view of the potential effects of a Democratic congressional majority on the US economy ...
As an economic fundamentalist, I fail to see how the effective doubling of the US capital gains tax rate will be 'good' for US stock markets. I also fail to see how extracting more money from the pockets of 'middle class' Americans by allowing income tax rates to increase significantly will be 'good' for the US and world economy. I also fail to see how the imposition of tariffs and quotas on foreign imports (which may amount to a 27% price increase) improves the standard of living of most Americans.
The 'tin foil hat crowd' is of the opinion that Sen. Rangel and Brown's trade and economic and tax policies, if and when implemented, will be beneficial for two groups of Americans ... namely the poor and the extremely rich ... while placing a heavy burden on 'middle class' Americans. They also point out that one particular investment is likely to do very well if Sen Rangel and Brown's policies are implemented - tax-free muni bonds !
Perhaps the most 'dangerous' of all of the Democrat supported tax and spend principles in terms of US economic health is the potential resurrection of PAYGO ... which in essence would require a 60 vote majority to PREVENT automatic income tax increases from going into effect which are required to pay for automatically growing entitlement program spending.
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Last edited by Melonie; 10-20-2006 at 06:26 AM.





I also suspect that much of today's market action in CAT (the 'ultimate' republican / capitalist stock) and GOOG (the 'posterchild' democratic 'new economy' stock) has been prompted by a rising impression among US media that a democrat victory in next month's election is now a serious possibility ...
"CAT: 41 billion in revenue, $3.25 billion in profits - [stock down 12% today]
GOOG: 7 billion in revenue, $2 billion profits - [stock up 7% today]
what's particularly underappreciated in the "which company is more valuable/important" analysis is the fact that a company like CAT (like GM) has an enormous impact on the economy it intersects with: suppliers, steel, shipping, etc., while GOOG just doesn't. We cannot google our way to prosperity."


It will be interesting to see how it all plays out for sure. If/when the Dems win we should check back here and there and see which of the various article "experts" predictions were better.





^^^ agreed ! Obviously there should be some sort of short term financial reactions immediately after the results of the November election are known.
Much less fortunate will be the fact that, like the gov't policy changes of the 90's, it may actually take several more months or even years before the incentives and dis-incentives which result from gov't policy changes actually translate into 'concrete actions / results' on the part of US corporations, individuals, and the economy / US standard of living in general.
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