I talk to folks regarding investments.
One common thing that has come out of virtually every conversation is that these people are scared shitless of having Obama be elected.
Almost all of them have stated that if Obama gets elected, they will literally stop trading securities for fear of the impact has administration would have on the economy. They view it as a compounding problem to an already FUBAR financial sector.
Now, these people aren't generally political guru's and are motivated by fear (some warranted, some unwarranted), but why they think the way they do is irrelevant here. I'm normally pretty big on the "why" regarding the rationale that people use to substantiate their points; why the think the way they do. In this case, however, the fallout from their decision making is more important than why the think the way they do. Real or not, they have serious fears that will impact the markets.
It is entirely possible that these people are just blowing smoke and pissed off. If they aren't:
- Watch the economy go further down hill as money gets sucked out of it
- Watch unemployment go up because people are liquidating their business and slowing/stopping investment in business.
- Watch less money be available for lending
- Watch the GOV think it has to be more proactive in solving the problem
Lots of people went to cash a few months back and some more recently. the 750 billion is out there; in the money market accounts of people who are scared shitless.
If Obama wants to win, and actually follow through on his "hope" and "change", he will need to find a way to show these people that they can have confidence in his administration. Otherwise, you are going to see the GOV try and further inflate our way out of these problems, take over failed business with failed policies, etc. GWB is a fool regarding the economy, but Obama will have zero chance of making it better unless he thinks about this kind of thing. It's not the guy who has $50k in a 401k who makes the world go round, it's the guy with $800k in a 401k and $1.4mm liquid outside of it that has the impact on everyones investments and "the market".
One common thing that has come out of virtually every conversation is that these people are scared shitless of having Obama be elected.
Almost all of them have stated that if Obama gets elected, they will literally stop trading securities for fear of the impact has administration would have on the economy. They view it as a compounding problem to an already FUBAR financial sector.
Now, these people aren't generally political guru's and are motivated by fear (some warranted, some unwarranted), but why they think the way they do is irrelevant here. I'm normally pretty big on the "why" regarding the rationale that people use to substantiate their points; why the think the way they do. In this case, however, the fallout from their decision making is more important than why the think the way they do. Real or not, they have serious fears that will impact the markets.
It is entirely possible that these people are just blowing smoke and pissed off. If they aren't:
- Watch the economy go further down hill as money gets sucked out of it
- Watch unemployment go up because people are liquidating their business and slowing/stopping investment in business.
- Watch less money be available for lending
- Watch the GOV think it has to be more proactive in solving the problem
Lots of people went to cash a few months back and some more recently. the 750 billion is out there; in the money market accounts of people who are scared shitless.
If Obama wants to win, and actually follow through on his "hope" and "change", he will need to find a way to show these people that they can have confidence in his administration. Otherwise, you are going to see the GOV try and further inflate our way out of these problems, take over failed business with failed policies, etc. GWB is a fool regarding the economy, but Obama will have zero chance of making it better unless he thinks about this kind of thing. It's not the guy who has $50k in a 401k who makes the world go round, it's the guy with $800k in a 401k and $1.4mm liquid outside of it that has the impact on everyones investments and "the market".
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