The trend of election-timed records continue. As reported earlier, stocks set a record post-election day drop earlier in the week. Reuters reports that even with the rally on Friday, stocks set a new record for losses for the week after an election.
So far, it seems that Wall Street lacks confidence in an Obama administration. The fear likely stems from Obama’s promise to raise taxes on those who hire, set salaries, and set pricing for goods and services. A tax hike on any level is likely to only make the current economy issues even worse. In fact, Herbert Hoover created the depression with policies such as these. Time will tell if advisers have any success in persuading Obama to make sound economic decisions.
With even more job losses this week, it is unclear if the economy has hit bottom. Unfortunately, it can turn into a self-perpetuating situation. People lose jobs and are unable to spend money with companies. Companies lose profits and have to let more people go. It’s a situation that will be a challenge for the new President-elect.
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Posted under Economy
Written by admin on November 8, 2008
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