Last I checked, the futures markets were giving OBAMA! a 59% chance to winning the election - lower than I would guess, so I suppose you could say I would go "long Obama" if I had to make a trade.
Thus I have internally accepted the fact that we must prepare to deal with the future economic policies of OBAMA!
This usually means a brace for the negative. However, a very interesting point posed by Martin Hutchinson over with Money Morning:
On monetary policy, Obama is advised by former U.S. Federal Reserve Chairman Paul Volcker, a believer in fighting inflation through high interest rates – a strategy he successfully employed in the early 1980s. Further, current Fed Chairman Ben S. Bernanke is a Republican appointee whose term expires in January 2010. And since former Fed chief Alan Greenspan served throughout the Clinton years, there has not been a Democrat-appointed Fed chairman since Volcker himself in 1979. It is thus very probable that Obama will replace Bernanke, and quite possible that he will replace him with a monetary “hawk” who will push interest rates higher. This will make Wall Street squawk, and will likely cause a temporary crash in stock prices, but will end up being very much to the long-term benefit of the U.S. economy. Enough with the financial bubbles that we’ve seen!
Most Popular Articles This Month
The gold standard these days has been reduced to a distant memory and fantasy of hard money proponents. IF we returned to a gold standard, ...
Our soft commodity flavor-of-the-month, cotton, has seen its near term futures surge "limit up" for the second day in the row. Wa...
Just nine months ago, we were licking our chops at cotton's blue light price special . Cotton had been smashed from a post-Reconstructi...