The Economics Of A GOP Gubernatorial Sweep

[Terri]

By Lawrence Kudlow
November 5, 2009

Against the backdrop of high unemployment and a public revolt against a Democratic health-care bill -- which would significantly increase taxes, slash Medicare spending, and massively raise health-care spending elsewhere in a government takeover of our leading growth sector -- the Republicans swept the Virginia and New Jersey gubernatorial races.

It's interesting that early signs of economic recovery are not helping the Obama Democrats. This is largely because of the 9.8 percent unemployment rate, which is expected to move higher. Even the crazy jobs-saved-or-created campaign is having no discernable impact while the Obamacons try to fight the unemployment rate.

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[mort_f]

Did anybody notice that the stock markets plunged just one month before the 2008 election, and then, before any stimulus, or goverment action, rebounded significantly? No it has not recovered totally to Sept 2008 levels, but that was a rather inflated level. Condidering that less than 10 percent of any corporations shares are ever traded, it is not that difficult for a wealthy manipulator to effect a major short term change. No, we will never see that 'investigation'. Nor will we ever see the investigation of Obama's campaign financing. Only minor infractions came to light.

[Caliphant]

Condidering that less than 10 percent of any corporations shares are ever traded, it is not that difficult for a wealthy manipulator to effect a major short term change.

Manipulated trading is the reason I will withdraw from investing in stocks and rather put my money in closed-end mid or small-cap funds.

I guess the ten percent you mentioned refers to actual stocks being traded - add today´s leveraged derivative trading, otc transactions and short selling and you end up well beyond 100 percent of "shares" being traded.

With that you don´t even need to move a lot of money to cause major movements in a share. All this has devestating effects on market stability.

I think people are still too trusting when it comes to stock trading. As long as we don´t return to a more regulated trading environment, big and small scale market manipulation remains too easy and likely to happen.

Take Citi - even that heavily traded stock follows the "impulses" Pandit (the Bandit) sets and personally profits from.