Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: John Lacelle who wrote (118260)	12/20/2000 3:23:11 PM
From: asenna1	Respond to of 769670

Check market performance from the moment the US Supreme Court handed the keys over to Anheuser and get back to me.

To: John Lacelle who wrote (118260)	12/20/2000 3:37:14 PM
From: TimbaBear	Read Replies (1) \| Respond to of 769670

The NAZ was down 40% before the election, the DOW down 20%...can't really blame Dubya for that can we? I don't know if blame is the correct word....but since early this year it has been obvious to the big money folks that there was better than a 50-50 chance of a Bush presidency and that is why there has been selling into rallies. The acorn hasn't fallen very far from the tree here, his dad didn't have a clue about economic issues and neither does Dubya. The market sees a former Defense Secretary as VP and a former Joint Chiefs of Staff as Secretary of State and says:"Vastly increased Military spending"; it sees Dubya trying to buy legitimacy with tax cuts and says:"greatly reduced Federal income"; it sees an economy slowing down and a stock market falling and says:"Lower Federal Income due to Capital loss write-offs".....then it extropolates and sees lower budget surpluses(maybe even deficits again in the near future), it sees private money lending to the US Government instead of to US busnesses therefore giving those businesses lower expenditures for expansion....the market also sees the military build-up as destabilizing as the other big world powers will have to increase their own spending and also enter into alliances to feel safer....all of this spending is on non-productivity enhancing endeavors, which means the only thing that has made the current inflation acceptable is now being decreased....productivity has now peaked because businesses will have to fight the government for money to expand technology which increases productivity. Yes this market drop and what will follow can be laid at the feet of Dubya, because the market discounts future events....when those events appear to be favorable for business, the market rises in anticipation....when it expects an unfavorable future climate, it sells into any rally. Someone else said that he doesn't have control of monetary policy so therefore he can't be responsible for the recession....think it through a little....isn't a tax cut monetary policy?....putting money into the hands of people so they can spend it is monetary policy....whether you do it through lower interest rates or through a tax cut, its effect is stimulation....only this time the monetary policy is in the hands of someone other than Greenspan....and the market is giving us its opinion of that.