Stocks Crash Following Scott Brown Win

[Joanne98]

For OpEdNews: Rob Kall - Writer

The stock Market's response to the GOP win in MA suggests that the Dems and the Obama administration really were in collusion with the insurance and Pharmaceutical industries, as the stock market plunged in the three days following Brown's win, producing the worst week in almost a year.

The Wall Street journal's to headline article reports that "The stock market suffered its worst week since the depths of the bear market nearly a year ago..."



Of course, the Murdoch/Fox News owned former shell of a real news organization did not attribute the selloff to the Brown win. They blamed it on "turmoil in Washington," "concerns about weaker economic growth," and increasing doubts that Federal Reserve Chairman Bernanke will be re-verified. His nomination seemed a shoe in a few weeks ago, but socialist Senator, progressive hero Bernie Sanders put a hold on his confirmation, just as Jim Demint had put one on Obama's TSA head appointee who recently withrdrew his name from the nomination.

The three days following Scott Brown's Senate election win in Massachusetts led to a drop that literally wiped out all the gains the Dow Jones accumulated in the past two months.

continued>>>
http://www.opednews.com/articles/Stocks-Crash-Following-Sco-by-Rob-Kall-100123-895.html

They're losing the mandate money. That's a lot of money. Maybe 2 trillion dollars. Of course the health insurance companies will react by doubling everyone's insurance premiums. Get ready for health insurance company rape. They'll do exactly what the credit card companies did when we didn't get the 15% cap on rates.

[kstewart33]

1. Nonsense. nt

[jwirr]

2. They are angry at President Obama but they sure as hell do not

want the repugs back in control.

[Joanne98]

6. They don't know what they want. A guy in a pickup truck........

I figure they'll change their minds quickly especially when their insurance premiums go through the roof.

[Fearless]

3. "All those people in Mass"

I think we know the consequences of this election, thanks... And the stock market crashing isn't the least of my concerns. Wall St. has it coming.

[Joanne98]

4. Changed it.

[Fearless]

7. That's a first in DU history...

:hi:

[Joanne98]

8. LOL

:spank:

[shraby]

5. Wall street is going down because they are

punishing Obama for moving to enact rules and regulations on the bastids.

[Joanne98]

9. And the teabaggers want to eliminate the Fed. LOL

I actually had fun watching Larry Kudlow last night. He looked like he's been constipated for a week.

[Lucky Luciano]

10. Rubbish...

Never mind that Morgan Stanley and Bank Of America reported lackluster earnings the day after Brown's win and JPM had already reported so-so earnings due to consumer defaults on loans. Never mind all this talk of taking down prop-trading which would force banks to unwind huge positions and sell large holdings that are considered "prop." Never mind that selling their positions in corporate bonds and mortgage bonds will force credit spreads wider making it harder for corporations and people to get loans with favorable interest rates (if they can get said loan). Yes, the only reason the market was down is due to Scott Brown's win :sarcasm: - though I hope this tag was not really needed!

[DKRC]

11. The part just beneath the graph is telling

<...>

Obama administration representatives (like Robert Gibbs) and senate supporters of the Democratic health care legislation suggested, on Wednesday, that the stock market was not reflecting support for their legislation. But others, like Dylan Ratigan at the 4 PM EST slot at MSNBC, have repeatedly pointed out how the rise in health insurer stock values have been a clear indication that the Dems were giving a gift to health insurers-- just like former Cigna Exec Wendell Potter has stated.

This latest stock market move, like any stock market shift, is like a Rorschach test, upon which any interpretation can be projected. Fox's Wall Street Journal spins it as an indication of bad news about Bernanke, but there's very good reason to read this as a horrified realization that the Democratic party/Obama Administration betrayal of the constitutents who gave them power unprecedented in recent years just might be checked-- that Scott Brown might block the gifts and welfare to health insurers and big Pharma that corporate owned and operated senators Baucus, Nelson lined up, with the help of Harry Reid.

It's almost as if the Democrats, with their worst than nothing health care plan were caught with their hands in the cookie jar and now, the stock market is facing the possibility that rotten apples like the abovementioned plus other never to be elected again hangers on like Chris Dodd, Joe Lieberman, Blanche Lincoln, Mary Landrieu and probably Harry Reid will NOT be able to deliver the gift that has seemed so close-- a terrible for main street, great for wall street health business plan that makes health CARE worse.

<...>

http://www.opednews.com/articles/Stocks-Crash-Following-Sco-by-Rob-Kall-100123-895.html

Corporatists of both parties are the real enemy of the people. We are merely numbers to them in their drive to buy/sell/trade everything on the planet for as much profit as they can make. If our pets, family, or friends have to die from tainted food, toxic chemicals in everyday items, or wars for control of territory with resources they covet so be it. We all are expendable to Corporatists.

[Bitwit1234]

12. Sure glad Cramer isn't my stock broker.

[Joanne98]

13. Another theory on how Brown's election is tanking the market "So, The Market's Down Because?"

Can't tell you the name of the fellow who sent me the following analysis but it's an interesting premise to ponder: The way this person has it figured, the market is down because of the Scott Brown victory in Massachusetts this week:

"A lesson in compounding

Whether you've swallowed the US Chamber of Commerce flavor-aide without thinking (government takeover, when the truth is about a million miles away), or you've studied the House and Senate versions of health insurance reform in depth, it seems that the stock market "gets it" what defeat of the reform effort will really do.

What it does is let the medical insurance billing machine stay on its current path. For those of us with private coverage, that means we will continue to experience the after-inflation double-digit annual cost increases (literal for those who keep the same benefits year over year, or adjusted for increase co-pays, etc) and for government programs, the increase in cost will sit, after inflation, in the mid single-digit range.

Let's put that in perspective:

60% of our medical costs flow through the private insurance system, and 40% through government programs. At 17% of GDP, that means the after inflation tax increase imposed on our economy will stay on the current trajectory. That works out to

17%*60%*10% + 17%*40%*5% as an annual real growth rate, expressed as a percentage of inflation-adjusted GDP. That's an after-inflation contribution to our national overhead of 1.054% in 2010. Assuming all income taxes will equal 8% of GDP in 2010 (a stretch if we don't have serious growth), it's as if the obstructionists just put on a 13% across-the-board increase in income taxes for this year. Next year, assuming 2011 stated personal income tax collection is flat to 2010 after inflation, the tax increase is 1.56% of GDP, or nearly 20% of the size of the income tax collection, working out to an aggregate increase of one third in just the first two years.

Left to compound merrily along, this equation doubles our national tax load in less than five years.

Nice work, dirtbags. Too bad you thought getting back in power was more important than your country and its economy.

http://urbansurvival.com/week.htm