Kerry Presidency Seen a(s) Boon for U.S. Markets

[oxymoron]

NEW YORK (Reuters) - If John Kerry wins the Democratic nomination and goes on to be the next U.S. president, experts say it would be good for Wall Street, which likes the way he talks up balancing the budget.

Kerry, a U.S. senator from Massachusetts, has won seven of nine contests so far to determine the Democratic party's nominee, and faces five more races in the next five days.

"Kerry (policy) will probably be similar to a Clinton economic policy, which would be more focused on balancing the budget," said Gus Faucher, a senior economist with Economy.com, where he tracks elections.

"That would bring down interest rates and drive up bond prices," he added. Bond yields and prices move in opposite directions.

http://www.reuters.com/newsArticle.jhtml?type=reutersEdge&storyID=4303581

[King of New Orleans]

1. It would be quite a trick

to have interest rates go lower than they are now. But the point the fellow is making is that interest rates won't eventually be forced up byy a gov't desperate to finance a spiralling deficit.

I would expect that there are several Wall Streeters that are concerned that Bush Inc. has lost it's last grasp of reality regarding the budget. Though most of 'em would still vote Repub even if it meant disaster.

[Tim_in_HK]

2. I would assume

he's talking long term interest rates.