CHESSNOID

Now that the elections are over, there are no longer any distractions of presidential contests to distract the market.  More importantly is what impact will a democrat being in office have on the economy now and next year.  I have to guess Obama is putting together a team of economists who understand what needs to be done to stimulate the economy effectively.  Hopefully, he is doing more than just talking to Warren Buffett, the richest man in the world, who recommended we bailout those companies he owned stock in.  Yes, Buffet probably lost more money than all the individual investors combined.

He has made many campaign promises along the way from the democratic primaries to the general election.  Many, if not most of those promises were broken, by the time he took on McCain starting with the public financing.  Anyways, now that he has won the general election, we shall wait and see if that pattern changes from flip flopping to actually following through.  He has sold over 50% of American that the change he will bring will fix everything.   Based on what he has said and done, he doesn’t really know what that is.  My main argument for that is the TRILLION DOLLAR FRAUD BAILOUT that he supported last month.  Spending taxpayer money on failed and bankrupt private equity companies is a moral hazard.

Today, the market was down again another 5% on top of yesterday’s 5%.  We have been getting bad news on a regular basis and nothing is really worse than day before.  It is generally accepted we are in an unofficial recession and things will continue to get worse with Bush, Bernanke, and Paulson in office.  We had a general election run up in the markets, but we should of had a relief rally after the elections and not 2 ugly down days.

Overall, the general direction of the market was strictly down. I think we are temporarily oversold and will be surprised if we don’t see a bounce tomorrow.