Down almost 500 points. The market can see the coming thugocracy and it doesn’t seem to care for it.
UPDATE: Turns out that’s the largest drop after an election in history.
UPDATE II: Dow continues to slide, down another 360 or so with two hours to go. Why is this happening? There are a few reasons.
1. Obama has promised to raise the capital gains tax.
2. Obama has promised to raise the top marginal tax rates.
3. Obama has promised to bankrupt the coal industry.
4. Democrats are talking about ending tax breaks for retirement plans. This means no more 401k accounts.
In order to avoid the higher capital gains taxes, everyone is selling off their positions in order to pay lower taxes now. I’ve already dumped all mine.
Most people would have the sense to see that if a recession is looming on the horizon, raising taxes is not the way to fix things. Yes, Obama promised to lower income taxes for 95% of Americans. But when nearly 40% already pay no income taxes, I find his promise somewhat suspect.