I don't believe one U.S. political party or the other is specifically to blame for our own financial crisis. There is plenty of blame to go around and the problems have been developing for years. That said, it is becoming increasingly clear to me that the U.S. stock markets are tanking especially hard right now in part because investors believe Sen. Barack Obama is going to win on November 4th. As polls for Obama and Congressional Democrats have risen and Americans have begun to sense that Obama's election as president and expanded control of Congress by Rep. Nancy Pelosi and Sen. Harry Reid and their liberal allies is inevitable investors' fears have not been calmed. They have been exacerbated. True, investors don't see a complete and convincing economic rescue plan from Sen. McCain. But they see disaster in Obama's plan and the likelihood of full control of the U.S. government by the Democrats. The Obama-Pelosi-Reid prescription, after all, is the worst possible medicine for the economy. Fact, $1.3 trillion in new federal spending, dramatic tax increases on small businesses, dramatic tax increases on big businesses, dramatic tax increases on those who create wealth, a major new tax on energy producers, as well as nationalized health care system. We are not simply on the brink of a serious recession; we are on the brink of another Great Depression. How, then, will massive tax increases and massive government spending help us fight our way out of this crisis? Answer: it won't. And Main Street and Wall Street know it. Just ask Joe the Plumber.
Source: J. Rosenberg.
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