An Obama Victory and the Economy

I want to be on the record a week prior to the election. This election looks like it is going to tilt in favor of Barack Obama and the democrats. It looks like we are simply haggling over how big of a majority the democrats will hold in both houses of the legislature and whether or not pusillanimous, left-wing, ninnies like Al Franken will be swept into office along with Obama.

What I want on the record is....I will bet what is left of my entire portfolio, which is not a very big bet any more, that as soon as Barack Obama is in office, and maybe even right after the election, the tone of the economic news will change, and change dramatically. The tide of economic bad news washing over the working folks in this country will begin to subside and miraculously, the the economy will cease to be the worst since the Hoover administration. We have seen this in the past. Almost immediately after Bill Clinton won election, the economy that at the time was the worst sice the depression according to the press, was suddenly out of recession and the "economy stupid" which propelled Clinton to victory was on the road to recovery. To his credit, and with the help of the republican victories in 1994, Clinton stayed out of the way of the economy and enjoyed a rising economic tide for the vast majority of his administration.

Part of me is looking forward to an Obama victory so the hourly bludgeoning of our economy by the mainstream press can abate. Obama and his buddies are going to get a tremendous head start on getting the economy back on track from the press. Negative stories will fall from the headlines and hopefully the general feeling of economic helplessness will begin to recede. However, my fear, and candidly my expectation, is that an Obama administration along with a big majority in Congress will tax the producers in the country to the point of breaking. There is no way that rational and motivated producers in this economy can stand the barrage of income redistribution that is headed their way.

Let's enjoy the rays of media sunshine after the Obama victory. I suspect that it will be the eye of the hurricane. Once Team Obama unravels the capitalist fabric of this nation, it will take years, maybe generations to repair. Mark those words too.