I’ve been saying this for months, but let me get it on the record here: if Obama wins, the Dow Jones Industrial Average will be at 5,000 within a year. Jennifer Rubin:
Barney Frank and Joe Biden are the sodium pentothal of the Democratic Party. Biden told us to be afraid on national security. Frank tells us they Democrats will be coming after us with a big tax increase. Now Frank tells us that he wants a 25% reduction in defense spending.
So let’s get this straight: we are going to see more than $4 trillion in new spending, have a big tax increase, and defund our military — while certain to face international challenges where “it’s not gonna be apparent that we’re right.” And this is what Democrats are saying?
The Democrats in Congress are already talking about killing 401k accounts and other tax breaks. (Will we imitate Argentina?) The current Obama plan will not come close to funding his spending initiatives; expect a top marginal rate of 50% or more, extending to incomes far below $250,000. Unilateral rewriting of NAFTA and killing any prospect of further trade liberalization will put a large dent in international commerce. Obama’s economic plan is essentially Hoover’s. We’ll be lucky if the Dow sinks only to 5,000.
How much of the current crash is due to the prospect of an Obama Presidency? I don’t know, but I can’t tell you that I sold about half my holdings for that reason. If McCain wins, I’m jumping back in.