Respected financial journalist Charles Gasparino has an excellent article, entitled An Obama Panic? In the article, Gasparinio makes a point the mainstream media ignores: While Obama certainly did not cause the credit and market crisis, the fear of an Obama victory is fueling the crisis. As the election nears, and Obama rises in the polls, the markets have gotten even more irrational in their selling panic. The present economy, even with the forecast of a recession, cannot explain why so many investors are heading to the exits.
Gasparino points to Obama’s tax plans as fueling the fire:
“Overall, his plan includes some of the most lethal tax increases imaginable, including a jump in the capital-gains rate. He’d expand government spending massively, with everything from new public-works projects to increases in foreign aid to a surge in Afghanistan – plus hand out a token $500 welfare check that he calls a tax cut to everyone else. This is clearly the wrong way to go in the wake of an economic meltdown – yet Obama, for all his talk of how willing he is to compromise, of how he’d bring people together, is sticking to his tax guns.”
The stock market will not rebound unless and until it is clear that we have a president-elect who believes in the markets. Someone who understands that the people’s money is not his money, who accepts the principle that success is not a crime. Someone who has learned from history that raising taxes diminishes and distorts economic activity, causes businesses to cut jobs, and ultimately results in lost revenue to the Treasury.
The markets are right to fear Obama. If you want you want the markets to flourish, you don’t kill the entrepreneurial spirit of this country as Obama would by treating those who succeed as tantamount to criminals.
Tens of millions of Americans have lost trillions of dollars of net worth in the past three months. The best way to recoup that net worth is to grow the private sector, not the government. John McCain understands these principles, Barack Obama does not. Choose at your own peril.