Thursday, October 9, 2008

The "Death Spiral" has begun

Unless Americans wise up and pay attention to the facts of the leadup to the failed Fannie Mae/Freddie Mac debacle. Most Americans outside of those of us who watch events unfold minute by minute are oblivious to those facts, and as such, they will ignorantly suppose that Bush and Republicans are behind this chapter. Unless the biased press starts doing it's job and reporting that Barney Frank and Chris Dodd had a whole lot more to do with this failure than any Republican, the situation and it's outcome is bleak.
Now the Market falls under 9000. To most Americans, again , who ignorantly trust the mainstream media....this is directly proportionate to the "bailout".

In truth, it isn't. Companies and individuals who will have to pay higher Capital Gains taxes under Obama are moving their assets into places where they'll be safe until 2012. Until then, rather than invest those assets, they'll stuff them away and collect interest on them. If McCain is elected, this all stops dead in it's tracks on Novemebr 5th, and reverses course. With someone who understands the impact of Capital Gains Taxes on the flow of money to the markets at the helm, companies and individuals will open up those floor boards and will invest in growth again.
But if Obama wins, they'll close the floorboards and sit it out for four years (that'll look an awful lot like 1976 and Carter's administration).

As they continue to do this, the market, already in a precarious position due to democrats manipulation, will continue to fall. Those ignorant of the situation will see this, and be even more determined to vote for Obama, because they lack the information to reason that he and his ilk are exactly the ones who put us here.

So, in the end, those too ignorant to follow the breadcrumbs for themselves will inevitably connect the last remaining parts needed to gear a "Death Spiral" of electing Obama.

And there, at the bottom of the well, is where we'll sit for four years.

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