In case voters didn’t know it, the stock market reminded us all that the re-election of President Obama was a bad deal for the American economy.
The day after the election, the stock market plunged. It was the biggest decline of 2012, according to the Associated Press. Obama doesn’t bear the entire blame. Bad economic news from Europe also played a part. And earnings reports and forecasts from many companies also caused shareholders to sell.
But we could see the Obama effect in driving down stock prices of energy companies and financial institutions. Investors figure Obama will continue to hammer those industries and hamper them with more regulations.
Hospital and health care companies, on the other hand, rose in the market after the election. Investors know that Obamacare now will not be repealed, and it will prove a bonanza for all the companies making money from people who have to obtain medical care. If you think those companies’ future looks rosy because they will take in less, think again. They will take in more than they do already. The stock market reaction backs up what skeptics have known all along: The cost of health care will go up under Obamacare, not down.
Other gainers in the market were green energy conpanies. The market figures Obama will keep showering them with public funds, whether they produce anything or not.
Among the losers here are all Americans with a stake in the economy, especially those whose savings are tied to the private market. But evidently there are not enough of these people. Their votes were not enough to prevent this economic slide. (hh)
