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Old November 15th, 2012, 05:22 PM
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Default Stock market tanking - again

I recall before the election I was asked "if the economy is so bad why os the stock market booming?"

My gut feeling was that it was a Romney bounce, but I did not have a source to back it up. The day after the election I read that Wall Street supported Romney by about 4 to 1 (in terms of campaign contributions).

The reason is Romney had specifically addressed Dodd Frank - a bill (written by two democrats) that has created a lot of uncertainly in the banking sector.

According to Romney - there are parts of the law that are good, but there are parts that were creating uncertainty - specifically the parts where banks were told not to make "risky" loans but they were never given any guidelines as to the definition of a "risky" loan.

In any case - since the election the DOW has dropped every single day, reaching a low today of an 800-point haircut since Nov 6th.

I pointed out long ago that the same thing happened in Obama's first term, beginning with the day he won the nomination, dropping further the day he was elected, dropping further the day he was inaugurated and reaching a low (40% from its 2008 peak) in summer 2009.

During the campaign we heard people saying "The stock market has gone up 100% since Obama was elected" - that is not factual at all. At its best in the last four years it has re-touched its 2008 peak. But now it is falling off again....

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