Skip to comments.Business, Investors Root for Split Decision, Gridlock
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 ...
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.
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?
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.
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.
WOOOOOWWWWWW, look at that Dow go.
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.
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!
I have not been to bed yet. Watching the DOW tank --- 44 points in the first minute.
You haven't been to bed yet? Yikes!
What happened to Missouri???? Did he lose by that much?
Talent lost and get this: they passed the CLONING initiative too!
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!
It's beautiful and entirely furnished. 100 yards from the beach.
I'm ready....Is she really selling?
Yep and she will be here on the fourteenth.
"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.
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