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View Full Version : one theory on the economic crisis


GoldenRivet
02-27-09, 10:09 AM
Heard this being discussed at work the other day. I personally am not blaming Obama for this mess... but i am blaming the interpretation of his policies

the theory was that most investors and stock holders etc are wealthy right wingers.

Obama during his campaign talked about making major changes and redistributing the wealth.

Investors and Stock holders know they are probably going to be taxed out the wazoo to pay for all the inner city slums, crack dealers and welfare recipients.

so what do they do?

Sell out.... cash out.... liquidate... they want to turn as many assets into cash as possible.

combine this sudden exodus from the markets with the sub prime lending crisis and you have yourself a recipe for financial disaster.

Look back about 6 months... we were seeing Dow averages around 11,500 points - not great mind you - but a lot better than 7,100

Around October - November it becomes glaringly obvious that Obama is going to win the election... and?... the DJI falls 2,000 points in a single week.

add in the discussion of the trillion dollar bail out plan... and not surprisingly the dow drops another 1,000 points.

the closer we move toward socializing big business... the further away investors run with their liquid cash.

discuss

Letum
02-27-09, 10:16 AM
If that was the case, why would the vast majority (all?) of the investors be keeping quiet about it?

AVGWarhawk
02-27-09, 10:58 AM
It was talk of capital gains tax. Why put your money in the market at risk to lose it and if you turn a dime, uncle Sam want 8 cents off that dime?