Market Corrections in a Political Context
In the mid 1990’s I remember going over some financial stuff with my father. He was giving me advice on 401Ks and mutual funds among other things. As we looked over the 1, 3, and 5 year performances of different stocks and funds he just shook his head. When I asked why he was shaking his head he said “this is not normal and it’s just a matter of time before somebody sticks a pin in this balloon”. I didn’t really understand what he meant at the time, but soon I, and others of my generation entering the financial markets for the first time, experienced my first of several “market corrections”.
Thomas Sowell, one of my favorite economists, recently declared that “markets readjust themselves for a reason. That reason is that people pay a price for their misjudgments and mistakes”. I think that argument goes a long way when trying to describe what’s going on in American politics in 2008. Strange things are happening. The Democratic presidential candidate will be either a woman or a black man. White people from both parties are voting for the black man in droves. Rudy Giuliani’s September 11th chest pounding earned him an early exit from the race. John McCain, a very liberal republican any way you cut it, has still managed to become his party’s main candidate. Could that signal a major change in republican values? Strange things are indeed happening.
Major political market corrections only happen every few decades. The 60’s brought JFK, Reagan brought us the 80’s, and Obama is the leading indicator to watch in this 2008 correction. Never have the president and congress had such pathetic approval numbers, 30% and 22% respectively. This is akin to buying stocks at $100 and watching them fall to $30 and $22. It’s time to cut losses and invest elsewhere with our votes.
Popularity: 23% [?]
About the Author: Randall H. Miller is an American educator/blogger. He is also a former U.S. Army officer (82nd Airborne) with a Master of Arts in Diplomacy (focusing on International Terrorism). Use the form on the right to sign up for the "Friday Morning Fix” and other timely updates.
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dickmill
| Feb 13, 2008 | Reply Vote: 
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If it’s McCain vs. Obama, the general election in November will be a pure referendum:
- continue the war, or end the war
- economic policies status quo, or stir the pot (health care foremost)
- Washington insider, or new blood (if it’s possible)
note: black vs. white will be a non-issue; if it’s Clinton/McCain, “THAT woman” will be an issue
I can’t remember a presidential election with such polar choices. On the record: Barack in November.
Scooter Trash | Feb 13, 2008 | Reply Vote:
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In a culture dominated by the Cult of Personality, 30 minute sit-coms and worship of celebrity, John McCain will look like a wobbly old man with liver spots compared to the inspirational, but shallow, Obama in the national debates. I fully expect Obama’s coat-tails to extend well beyond a 60+ seat filibuster-proof Democrat Senate majority. America is about to change in ways that we have never seen before.
The 2010 midterm elections will show how much the Average Joe likes those changes.
Political Disgust
| Aug 29, 2008 | Reply Vote: 
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“It’s time to cut losses and invest elsewhere with our votes. ”
Hard to invest, when you are down to only a few cents in your pocket and neither option really feels worthy of those pennies…..
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Blog Disgusted at http://www.PoliticalDisgust.com
RHM
| Aug 29, 2008 | Reply Vote: 
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Yup, it seems the only options we have are penny stocks.
RHM