The stock market understands that having the Democrats in control of Congress will be a disaster for the economy. Why don’t the American people understand that?
U.S. stock futures pointed to a sharp sell-off on Wall Street on Wednesday after Democrats swept Republicans from power in the U.S. House of Representatives and an undecided Senate race fueled caution.
With control of the U.S. Senate likely to hinge on a ballot recount that could take weeks, analysts said investors would be pressed to sell stocks following a strong run-up made in anticipation of gridlock within Congress rather than the wider sweep garnered by the Democrats, who must now work with a Republican-controlled White House.
I think the Demcoratic pick ups last night are a mixed blessing. We have a god chance of being in an economic recession going into the 2008 Presidential elections, and guess who’s going to get the blame? That’s right, the party in control of Congress. Besides that, the GOP has gotten away from their message of small government and fiscal conservatism, and needed a trip to the woodshed to get them back on message. The Democratic majority won’t be sufficient to do anything anyway, so all in all last night may very well have been a good thing for the GOP instead of a bad thing.
I’m sure I’ll get flamed by people who think I’m being dishonest, but so what? Would I have preferred not to have lost seats in Congress? Of course. But I think the American people also need to be reminded of how bad it is when the Demorats run the show, especially with a Presidential election only two years away.
