T Nation

Dems 2006 Win Kills Stocks

The inevitable market impact from the November 8th, 2006 elections has finally come home to roost.

I sincerely regret ever voting for a democrat.
http://www.usatoday.com/news/politicselections/vote2006/2006-11-08-word-reax-usat_x.htm
http://www.salon.com/tech/htww/2007/02/27/market_correction/

Juan, you’re spamming. There is nothing in either of those links that even remotely suggests that the change in power in the US Legislative branch has anything whatsoever to do with this market drop. We’re supposed to expect a couple points worth of correction at least once a year, I think this one is actually a little overdue.

Could this be part of a five hundred years Supercycle?

[quote]Headhunter wrote:
Could this be part of a five hundred years Supercycle?

http://en.wikipedia.org/wiki/Grand_supercycle[/quote]

[i]As of October 2006, the situation has been clarified: the Dow Jones Industrial Average made a new all-time closing high, which confirms that 2000-2002 was NOT the beginning of a Grand Supercycle bear market, but a complex correction of the bull market that began in 1982.

Those who believe in the Grand Supercycle expect their bear market to begin once five waves up are complete from the October 2002 lows. Those who do not believe in the Grand Supercycle say that a new bull market is underway and that a Grand Supercycle bear market will never occur, instead forecasting a never-ending series of Supercycles.[/i]

It’s like reading the science behind global climate change except that humans are pretty conclusively the major contributing component to economics.

“One of the keys to the further analysis of human history in terms of Elliott waves lies in the duration of the Dark Ages. At more than 650 years, this period is far too long to be merely an X-wave correction. It has to be at least a correction at the end of a Y-wave, which then implies that the current X-wave that started in 1000 AD is X1 of a new Y-wave. This also implies that the coming correction is not simply going to be a GSC correction wave, such as at the time of the Plague or after the Mississippi and South Sea bubbles; it will be more substantial and of longer duration.”

http://www.gold-eagle.com/editorials_99/mbutler120299c.html

[quote]Headhunter wrote:
"One of the keys to the further analysis of human history in terms of Elliott waves lies in the duration of the Dark Ages. At more than 650 years, this period is far too long to be merely an X-wave correction.

It has to be at least a correction at the end of a Y-wave, which then implies that the current X-wave that started in 1000 AD is X1 of a new Y-wave. This also implies that the coming correction is not simply going to be a GSC correction wave, such as at the time of the Plague or after the Mississippi and South Sea bubbles; it will be more substantial and of longer duration."

http://www.gold-eagle.com/editorials_99/mbutler120299c.html

[/quote]

What a load of horseshit. Did someone get paid to right that?

[quote]Zap Branigan wrote:
What a load of horseshit. Did someone get paid to right that?[/quote]

No. Which is why its probably wrong.

[quote]Cunnivore wrote:
There is nothing in either of those links that even remotely suggests that the change in power in the US Legislative branch has anything whatsoever to do with this market drop.[/quote]

You need proof that the ousting of a government that defends the interests of corporations led those corporations’ stocks to drop?

Common sense, anyone?

This theory is dumb, but then again no dumber than the usual litany of “Bush burnt up the surplus!” or “Bush caused the recession!” that we get periodically around these parts.

Surprise.

Landslide win by Democrats will bring stock market in line with internals of the economy - 40% correction?
Nov. 8, 2006
The disconnect is so deep that the stock market can correct as much as 40% over the next two years. The easy money with huge tax cuts for the rich made the stocks go up with largest ever divergence between the common stocks and thirty Dow Jones Industrial Average.

While Dow made a new high but the Nasdaq that represents the common stock - the heartbeat of the American economy has merely budges to 2350 while the all time high in 2000 was above 5000.

Now that oversight of Administration is in place, fiscal responsibility is hopefully back and the middle class is allowed to participate, the stock market will have to readjust. The super profits from sending jobs to India and China will have to roll back. The oil companies will have to justify their actions. The financial services companies will be held responsible for their less than accurate statements in gaining access to common people’s check books.

A sharp fall in stock market is expected as underemployment is corrected in the economy.
http://www.indiadaily.com/editorial/14121.asp

Can anyone explain to me how the democrats taking control of Congress is directly responsible for the Chinese government trying to slow down runaway growth?

Wow, you guys really don’t know jack shit about how our economy works, do you? The title of this thread and much of the rubbish contained in it is goofy enough to be an article in The Onion. Go to your local Junior College and take some Econ classes.

[quote]thunderbolt23 wrote:
This theory is dumb, but then again no dumber than the usual litany of “Bush burnt up the surplus!” or “Bush caused the recession!” that we get periodically around these parts.

[/quote]

Yes, but with the war, those outcries have SOME plausibility to them (though not as much as many would like to think).

[quote]SinisterMinister wrote:
Wow, you guys really don’t know jack shit about how our economy works, do you? [/quote]

Let me guess:

  1. Wage war
  2. ???
  3. Profit!

On the more serious side, you can’t deny that the Rep’s go easy on the rich while soaking up the poor. I know that it’s quite simplistic, but it’s certainly not a fundamentally flawed logic.

[quote]Beowolf wrote:

Yes, but with the war, those outcries have SOME plausibility to them (though not as much as many would like to think).[/quote]

No they don’t - so don’t perpetuate the myth.

The surplus is a projection, not a big basket of cash. The projections didn’t pan out when the stock bubble burst.

And, the government not only cut taxes, but flooded the economy with spending.

So, no, it is foolish to suggest there is SOME plausibility to them.