note that there are three pages in total, with links at the bottom of page 1 and page 2 .





note that there are three pages in total, with links at the bottom of page 1 and page 2 .
Everyone's always hatin' on Democrats. BTW, I'm not a dem.
Most people weren't "feeling" how well the economy was doing anyway, so this may not have much bearing to middle class and lower, but hey, kudos to all the millionaires!!!!!
Christian





^^^ the 'tin foil hat' crowd would argue that this will indeed have profound economic effects on the lower class (more gov't benefits) and on the middle class (higher taxes, lower pension payouts, depreciation of their savings/investments etc.)
Mel, can I get your opinions on the article and how you feel about the dems in power now. I actually want your opinion, not a bunch of links to articles. I want to hear your views, feelings, etc..
Christian





^^^ well, to answer your question, I really can't answer your question ! The problem is that one can look at what politicians that will soon be in position of power have said in the past and have voted for in the past (i.e. Charlie Rangel for one), one can look at what US businesses have decided to do in the past when confronted with higher 'mandated costs' for environmental compliance, employee benefits, minimum/living/prevailing wage rates (i.e. outsourcing or moving facilities offshore), one can look at the financial ramifications of the most likely illegal immigration policies, progressive tax policies, social welfare/entitlement program policies etc. - basically one can look at any number of 'likely scenarios' and still have no clue whatsoever as to future events that will actually come to pass.
The only personal opinion I can really offer at this point is that democratic policies have typically resulted in better living conditions for the poor, worse living conditions for the middle class, and better de-facto conditions for the inherited money 'very rich' ... and I see no reason to think that this time will be any different. As to my opinions on the future of stocks, democratic policies have typically been strong on subsidies and tariffs for certain businesses (alternative energy and public sector construction to name a couple), strong on higher business taxes, and weak on 'entrepreneurial' business incentives - and I also see no reason to think that this time will be any different.
As to my personal choices re investments, I'm loading up on precious metals and natural gas, I'm 'short' the S&P, and I'm looking for legal ways to move my US dollars out of the country and convert them into Euros !




Well I think there is a good reason Democrats get a bad rap on Wallstreet.
Democrats are more likely to hold Wallstreet accountable then Republicans. For example, Nancy Pelosi has said she intends to begin an investigation in the contracts concerning the war. The first one she said will be Haliberton (sp?), which is Dick Cheney's old company. With investigation may come regulations. Wallstreet hates regulations. So investors may pull back or wait.
Also there is talk of the Democrats repealing tax breaks for large companies ie ExonMobile. They want to get rid of the tax cuts Bush has implimented. In most cases they only helped upper middle class and wealthy folks anyway.
Democrats are also talking about raising the min wage. All of these things big business hates.
Republicans believe in trickle down econmics. Meaning if the rich do well everyone does because some how the money just falls down the ladder. Democrats believe in making sure everyone has a piece of the pie and not just the crumbs from the table.





^^^ again not wanting to go too far to the political side, but at the same time the Democrats will be investigating accounting irregularities at Halliburton, they will also be raising tariffs on imported ethanol thus handing extra profits to VeraSun and other US ethanol companies who will then be able to charge an even higher price for their 'mandatory' gasoline additive in the 'legislated' absence of foreign competition (US ethanol is already priced 50 cents/gal over the price of imported ethanol without the tariff - which goes directly to the price of blended gasoline at the pump). Similarly, democrats usually see to it that law firms and banks profit handsomely, whereas republicans seem to cater to oil companies and brokerage firms. Also, historically speaking, democrats have advocated policies which have 'mandated' low prices for prescription drugs, vaccines etc. which obviously hurts drug company profits.
Thus it is arguable that both the republicans and democrats have certain market sectors which are subsidized and demonized by each party as a result of their differences in policy. This was discussed in the 'Dead Market Walking' piece.
As to 'trickle-down' economics and taxing the rich, again this is arguably a well publicized urban legend. For a fact democrat tax policy has, on paper, imposed higher income taxes on the 'rich'. However, the unspoken truth is that democrat tax policy typically leaves plenty of loopholes for the 'very rich' i.e. those with hereditary wealth whose incomes come mostly from investments (which constitute dividends and interest rather than earned income) rather than actual business activities (which do generate lots of earned income) to escape actually paying most of those higher tax rates. On the other hand, republican tax policy is typically lenient on actual business activities thus typically supports lower tax rates on earned income. While this does cut corporate execs, stockbrokers etc. a break, it also cuts 'middle class' taxpayers in the $75k to $250k income range a break as well.
Again, the merit of your statement really depends on whose 'pie' actually winds up getting cut up and redistributed to those who are 'less fortunate'. This is yet another example where a change in gov't policy may take several years for the actual economic effects, reactions, and unintended consequences of that change in gov't policy to show up.Democrats believe in making sure everyone has a piece of the pie and not just the crumbs from the table.
As to the minimum wage / living wage / prevailing wage policies of democrats, again it will take some period of time after such measures are enacted to see what the real world economic consequences are (i.e. higher prices), what the reactions are (i.e. increased unemployment and outsourcing), and what the unintended consequences are (i.e. increased social welfare spending, increased pay rates for union / civil service jobs leading to higher prices and higher taxes). However, I am certain that we'll get the chance to find out firsthand, since this is a huge priority on the democrat's docket.
Another 'tin foil hat crowd' opinion ... that the democratic majorities in both the house and senate may now have to deal with 'filibusters' from the republican minorities as well as 'vetoes' from president Bush, meaning that 'gridlock' may be the order of the day in Washington DC for the next 2 years. While this line of thought might in fact be an accurate prediction, now that it is known for sure that both the House and Senate have gone republican the economic pundits appear to be re-thinking their initial 'gridlock' conclusions ...
(snip)"Investors had driven stocks broadly higher this week on optimism that Democrats taking control of Congress would cause political gridlock that would be favorable to businesses.
But after more time to mull over the election, investors are starting to become concerned about an "anti-business stance" among Democrats in Washington, said John O'Donoghue, co-head of equities at Cowen & Co."(snip)
!
~
Last edited by Melonie; 11-09-2006 at 03:35 PM.
Well, it all boils down to this. The repubs lost because they had a lousy 8 years in office. They've put us into more debt than anyone could possibly imagine...got us into a war with no plan of how to get out of...in one felled swoop, alienated us from the rest of the world...
Americans are tired of the Republican bullshit. In Illinois, the Dems swept just about everything. I'm not happy with some of the dems that won...but overall...this looks very good for the presidential elections in 2008. And, hopefully if the investigations go as promised, Bush will be out along with all of his crooked people...and ordered to pay back a shitload of money to the American Taxpayers.





Well I hope people are not expecting a miracle. When this country is in the type of trouble it is in now! But it wont be a bad idea to pray for one.
If you want the present to be differant from the past, study the past.
Baruch Spindza
It is what it is, not what you want it to become, that's important -- at least for now. Today, remember that things worth having are worth waiting for!
The Stars
Minds are like parachutes: They only function when open.
Thomas Dewar
Dont throw away the old bucket until you know whether the new one holds water.
Swedish Proverb
Well, shit happens and those who can smell it and avoid stepping in it will make money regardless of who is impeaching whom or getting so and so to testify.
A lot of things happen under each party's watch. Let's not mention Enron, Halliburton, etc. IMHO regulation of corporations keeps them in line for society and the shareholders. The SEC act of '33 and '34 and the Maloney Act didn't come about before the stock market crashed. They came about because of out and out fraud of businessmen.
Likewise, someone has to keep the government in check and that is the responsibility of the voters. And "God Bless Democracy" it continues to work.
The dems have been out of action for over 12 years in the house and 6 in the executive branch. They have had plenty of chances to change their tune over those 12 years and refused to do so and so were kept out of legislative power that long.
Bush and friends became so entitled and "We can do anything" in their mentality they forgot about the people who put them there - us!
As Jon Stewert said on the The Daily Show last night, "somehow they manged to get elected without stating any positions on any issues and the only one who did speak out managed to insult all our troops."
I think they are going to get kicked out in two years unless they show some new tunes. This was a vote by the middle class that they best not forget the middle class.
No one wants to say it - but it is the independents who chose this election. One can tell simply by the near margins in all the races 2% to 5%!
Also - it can be said, even though there was over 40% turn out rate - the moderate republicans either stayed home or voted libertarian/independent.
When even the AM radio commentators are bad mouthing the republicans (and how can't ya when the Rs are screwing up so badly in so many ways) - you know people will be ready to vote "Anybody but an incumbent."
Also - the pendulum is finally starting to swing back towards the middle. The SD abortion ban was shot down. Multiple states decided that labor actually DOES have something to do with creating value (ie the minimum wage laws.) Voters started to get tough with the illegal alien crisis.
Thank god for voter referendums. Every state should be forced to have them.





^^^ I'll steer clear of political comments other than to say that the 2008 election will most likely be a referendum on the state of the US economy 2 years from now, and a referendum on national security (again) if and when another terrorist attack occurs on US soil.
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