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Business, Investors Root for Split Decision, Gridlock
Fox News.com ^ | November 08, 2006 | Alexander B. Duncan

Posted on 11/08/2006 6:22:48 AM PST by KeyLargo

Business, Investors Root for Split Decision, Gridlock

Wednesday, November 08, 2006

By Alexander B. Duncan

NEW YORK — As Americans voted in Tuesday's midterm elections, the U.S. business and financial communities appeared to be cheering for a split Congress and the resulting legislative gridlock on Capitol Hill.

"Gridlock is good, Wall Street doesn't like change," said Charles Gabriel, senior Washington analyst for Prudential Securities. "You're not going to have runaway spending increases, you won't have a repeal of the Bush tax cuts, and there's no legislative change that will roil industries. The green light is on for equity investments because you've got protection against any major changes."

Generally, the Republican Party is regarded as more business-friendly because of its tax policies and softer stance for requirements on corporate governance. After 12 years of a Republican majority in the House, four years of GOP control in the Senate and six years for Republican President George W. Bush in the White House, much of the law enacted in Washington has had a pro-business bend.

(Excerpt) Read more at foxnews.com ...


TOPICS: Business/Economy; Editorial; News/Current Events; Politics/Elections
KEYWORDS: economy
It appears that gridlock will be good for business.
1 posted on 11/08/2006 6:22:51 AM PST by KeyLargo
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To: KeyLargo

How does that account for the lower opening today?


2 posted on 11/08/2006 6:25:29 AM PST by grobdriver (Let the embeds check the bodies!)
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To: KeyLargo
"You're not going to have runaway spending increases, you won't have a repeal of the Bush tax cuts, and there's no legislative change that will roil industries.

Man. What planet is this guy living on?

3 posted on 11/08/2006 6:25:56 AM PST by FlingWingFlyer (November 7, 2006. The day America surrendered to Islamofascism.)
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To: KeyLargo
With a 50-50 in the senate and loss of the house, there will be absolute gridlock for the newxt two years. That might be the best thing right now.

You never want the government to "fix" anything, and if they are so devided it might well be a good thing.

4 posted on 11/08/2006 6:26:20 AM PST by IllumiNaughtyByNature (If a pug barks and no one is around to hear it... they hold a grudge for a long time!)
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To: KeyLargo
you won't have a repeal of the Bush tax cuts

If they are not made permanent, yes you will.

5 posted on 11/08/2006 6:26:34 AM PST by frogjerk (REUTERS: We give smoke and mirrors a bad name)
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To: KeyLargo

Just a hunch,I doubt the investors will be rooting long !!!


6 posted on 11/08/2006 6:26:53 AM PST by Obie Wan
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To: K4Harty

Is that number final? I just woke up. Did we at least hold the Senate?


7 posted on 11/08/2006 6:27:30 AM PST by Hildy
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To: K4Harty
You never want the government to "fix" anything, and if they are so divided it might well be a good thing.

I have no problem with the government doing nothing, except making the tax cuts permanent.

8 posted on 11/08/2006 6:27:43 AM PST by frogjerk (REUTERS: We give smoke and mirrors a bad name)
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To: KeyLargo
It appears Business Analysis for Investment Firms get paid to put out nonsense marketing propaganda out as news.

Guess boyo here never realized the Bush Taxcuts have a sunset provision put in place by the Democrat controlled Senate. You all do remember the Democrats controlled the Senate from mid 2001 to 2003? Forget getting them renewed now.

Wonder how the Market is going to react to that bit of data?
9 posted on 11/08/2006 6:28:25 AM PST by MNJohnnie (The Democrat Party: Hard on Taxpayers, Soft on Terrorism!)
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To: Hildy
Is that number final? I just woke up. Did we at least hold the Senate?

Not yet, it's gonna be a long court battle.

10 posted on 11/08/2006 6:28:39 AM PST by IllumiNaughtyByNature (If a pug barks and no one is around to hear it... they hold a grudge for a long time!)
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To: K4Harty

"With a 50-50 in the senate ..."
There will be some Rino who will switch parties and hand control to the marxist party known as dem-o-rats.


11 posted on 11/08/2006 6:28:44 AM PST by dynachrome ("Where am I? Where am I going? Why am I in a handbasket?")
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To: grobdriver
How does that account for the lower opening today?

Wall Street views uncertainty as the worse possible news.

12 posted on 11/08/2006 6:28:50 AM PST by wagglebee ("We are ready for the greatest achievements in the history of freedom." -- President Bush, 1/20/05)
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To: KeyLargo

Yeah. They'll save on fuel costs for now, but that situation will get highly interesting in the near future. All that matters is what we can get with cheap transportation and cheap labor today, though. ...right?


13 posted on 11/08/2006 6:28:52 AM PST by familyop
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To: frogjerk

I agree.


14 posted on 11/08/2006 6:29:00 AM PST by IllumiNaughtyByNature (If a pug barks and no one is around to hear it... they hold a grudge for a long time!)
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To: K4Harty

I know I like gridlock.


15 posted on 11/08/2006 6:29:39 AM PST by Huck (TODAY ONLY--Half Price on all VANITY POSTS>>>GET EM WHILE THEY'RE HOT!)
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To: K4Harty
Ah no. The Bush Tax cuts will not be renewed now. Say hello to our old friend Recession. Wonder what is going to happen to the Market when they realize the Bush Taxcuts are GONE?
16 posted on 11/08/2006 6:29:45 AM PST by MNJohnnie (The Democrat Party: Hard on Taxpayers, Soft on Terrorism!)
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To: K4Harty
Ah no. The Bush Tax cuts will not be renewed now. Say hello to our old friend Recession. Wonder what is going to happen to the Market when they realize the Bush Taxcuts are GONE?
17 posted on 11/08/2006 6:29:46 AM PST by MNJohnnie (The Democrat Party: Hard on Taxpayers, Soft on Terrorism!)
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To: Hildy


No numbers are final.

Montana is still counting and maybe into a recount and Allen has not conceded. VA's race may not be known for weeks.


18 posted on 11/08/2006 6:30:05 AM PST by onyx (We have two political parties: the American Party and the Anti-American Party.)
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To: dynachrome
There will be some Rino who will switch parties and hand control to the marxist party known as dem-o-rats.

If that happens, the GOP needs to be prepared to offer Lieberman anything he wants to caucus with the GOP.

19 posted on 11/08/2006 6:30:23 AM PST by wagglebee ("We are ready for the greatest achievements in the history of freedom." -- President Bush, 1/20/05)
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To: MNJohnnie
Ah no. The Bush Tax cuts will not be renewed now. Say hello to our old friend Recession. Wonder what is going to happen to the Market when they realize the Bush Taxcuts are GONE?

Move their investments into bonds?

20 posted on 11/08/2006 6:30:34 AM PST by frogjerk (REUTERS: We give smoke and mirrors a bad name)
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To: Huck
Wonder if you will love gridlock so well when the Bush tax cuts start expiring.
21 posted on 11/08/2006 6:30:42 AM PST by MNJohnnie (The Democrat Party: Hard on Taxpayers, Soft on Terrorism!)
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To: KeyLargo
nonsense . fox has shifted more and more to the left.
this is agenda journalism at its worse.
watch wall street today if you want to see a wipe out.
tax cuts gone and regulations are pushed !
wall street hates the dems.
22 posted on 11/08/2006 6:31:37 AM PST by BurtSB (the price of freedom is eternal vigilance)
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To: KeyLargo

Yeah, but a Senate up in the air until November 27th (apparently that is the earliest a recount can begin in Virginia) would be bad for business. I hope it's resolved long before then.


23 posted on 11/08/2006 6:31:55 AM PST by nofaceveils
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To: grobdriver

How does that account for the lower opening today?

The market has been generally up, I'd guess profit taking.

As a matter of fact, I'd bet that the market will see some down ticks for the next week.

Followed by a minor rally to end the year.

But what do I know?


24 posted on 11/08/2006 6:32:08 AM PST by WhiteGuy (GO BUCKS)
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To: KeyLargo
Except that gridlock will result in all the Bush taxcuts expiring. Also, I suspect that a minimum wage bill will go through and Bush will not veto.
I'm not dumping out of equities, but with Iran getting a nuke, I move about half my equity position out last year.
25 posted on 11/08/2006 6:34:04 AM PST by GeorgefromGeorgia
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To: KeyLargo

One huge flaw in the gridlock theory ... tax cuts expire automatically; gridlock will prevent their extension. No new taxes will result but the old ones will be back, just as the economy starts its downturn.


26 posted on 11/08/2006 6:34:08 AM PST by NonValueAdded (Prayers for our patriot brother, 68-69TonkinGulfYachtClub. Brian, we're all pulling for you!)
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To: MNJohnnie

A couple of points ain't gonna kill me either way. If they expire, they expire. I suspect what GWB has been able to pass thru Congress has cost me more than I saved from the tax cuts. Just the medicare bill alone prolly cost me more. I recall some pretty hideous transportation bills and other things. Without seeing a table of the actual numbers, I can't really sweat it either way. No, I don't like my taxes going up, but then again, I'm not so sure anyone's gonna touch my bracket. The top bracket might get hit, but that ain't me at the moment. Death tax doesn't affect me either, so I'm probably ok either way.


27 posted on 11/08/2006 6:34:15 AM PST by Huck (TODAY ONLY--Half Price on all VANITY POSTS>>>GET EM WHILE THEY'RE HOT!)
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To: KeyLargo
Except that gridlock will result in all the Bush taxcuts expiring. Also, I suspect that a minimum wage bill will go through and Bush will not veto.
I'm not dumping out of equities, but with Iran getting a nuke, I moved about half my equity position out last year.
28 posted on 11/08/2006 6:34:20 AM PST by GeorgefromGeorgia
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To: KeyLargo

WOOOOOWWWWWW, look at that Dow go.


29 posted on 11/08/2006 6:36:02 AM PST by OBXWanderer
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To: NonValueAdded; GeorgefromGeorgia

I think the idea is that what they aren't able to pass would have cost more than whatever they would have saved us. I mean, c'mon, it's not as if they're looking out for us in DC. They spend spend spend. I'd like to see an analysis of what taxpayers saved on taxes vs what new liabilities got passed thru the last six years. Does the tax cut offset the burden of the medicare bill, the transportation bill, etc? Maybe, but I don't know for a fact. It's conceivable that a do nothing congress is better than the alternative.


30 posted on 11/08/2006 6:37:29 AM PST by Huck (TODAY ONLY--Half Price on all VANITY POSTS>>>GET EM WHILE THEY'RE HOT!)
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To: onyx

If we lose those two, we've lost the Senate, right? I thought we were taking a week off from this? That wasn't even 10 hours ago we made that commitment!! ROLFMAO!


31 posted on 11/08/2006 6:37:42 AM PST by Hildy
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To: Hildy

I have not been to bed yet. Watching the DOW tank --- 44 points in the first minute.


32 posted on 11/08/2006 6:39:42 AM PST by onyx (We have two political parties: the American Party and the Anti-American Party.)
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To: onyx

You haven't been to bed yet? Yikes!


33 posted on 11/08/2006 6:42:31 AM PST by Hildy
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To: onyx

What happened to Missouri???? Did he lose by that much?


34 posted on 11/08/2006 6:43:14 AM PST by Hildy
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To: Hildy

Talent lost and get this: they passed the CLONING initiative too!


35 posted on 11/08/2006 6:45:06 AM PST by onyx (We have two political parties: the American Party and the Anti-American Party.)
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To: Hildy

Wait, not only did Talent lose, but stem cell won?????? What kind of country are we living in now? Hey, maybe I'll buy your daughter's house in the Cayman islands!


36 posted on 11/08/2006 6:45:45 AM PST by Hildy
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To: Hildy

It's beautiful and entirely furnished. 100 yards from the beach.


37 posted on 11/08/2006 6:46:56 AM PST by onyx (We have two political parties: the American Party and the Anti-American Party.)
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To: onyx

I'm ready....Is she really selling?


38 posted on 11/08/2006 6:48:56 AM PST by Hildy
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To: Hildy

Yep and she will be here on the fourteenth.


39 posted on 11/08/2006 6:49:33 AM PST by onyx (We have two political parties: the American Party and the Anti-American Party.)
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To: grobdriver

"Companies in the stem-cell sector showed gains after voters in Missouri narrowly approved a referendum guaranteeing federally approved stem-cell research and treatment will be available in the state. StemCells Inc. rose 33 cents, or 10.8 percent, to $3.40, while Geron Corp. rose 40 cents, or 4.8 percent, to $8.78. Aastrom Biosciences Inc. was up 13 cents, or 8.7 percent, to $1.62.

Also, companies in the mortgage business made advances on the notion that Democrats would push plans to broaden access to housing. Fannie Mae was up 50 cents at $60.40, while Freddie Mac was up 42 cents at $70.28."

Looks like investors will be jumping on the housing and stem-cell research bandwagon now.

http://news.yahoo.com/s/ap/20061108/ap_on_bi_st_ma_re/wall_street


40 posted on 11/08/2006 7:28:24 AM PST by KeyLargo
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To: OBXWanderer

Business

Nov. 8, 2006, 10:28PM
Idea of tied-up Congress pushes Dow to new high

By TIM PARADIS
Associated Press



NEW YORK - Stock indexes rose for a third straight session Wednesday, with the Dow Jones industrials reaching another record close as investors grew more confident that a huge victory by Democrats in congressional elections would result in gridlock and keep lawmakers out of the way of business interests.

The market had largely expected Democrats to gain control of the House of Representatives, but an undecided Senate race in Virginia had, during early trading, unnerved investors who dislike such uncertainty. Stocks showed gains after the announcement that Defense Secretary Donald Rumsfeld would resign.

"I would think over the next several weeks that investors should return their focus to the likelihood for interest rate moves in the decelerating economic climate, the moderating earnings growth and the weakening housing market," said Elizabeth Weymouth, global investment specialist at JPMorgan Private Bank.

The Dow rose 19.77, or 0.16 percent, to 12,176.54. The blue chips closed above the record of 12,167.02 set on Oct. 26 and came within a few points of a record trading high of 12,196.32 reached Tuesday.

The Standard & Poor's 500 index was up 2.88, or 0.21 percent, at 1,385.72, and the Nasdaq composite index rose 9.06, or 0.38 percent, to 2,384.94.

Bonds rose, with the yield on the benchmark 10-year Treasury falling to 4.64 percent from 4.66 percent late Tuesday. The dollar was mixed against other major currencies, while gold prices fell.

The gains this week continue a run-up seen in October that was interrupted last week when a string of poor economic data sent stocks lower. Already this week the major indexes are up at least 1.5 percent.

Looking at the ramifications of the election, Weymouth said investors likely will consider whether Democrats might try to somehow cap prescription drug prices, increase the federal minimum wage or raise the 15 percent tax on some dividend gains.


41 posted on 11/09/2006 5:29:04 AM PST by KeyLargo
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