On a Lighter Note
posted by Dave Hoffman
From an email publicized at the Corner:
“I believe today’s massive decline was, in part (and maybe a big “in part”), in fear that the debate tonight won’t go well for McCain and the implications that will have for an Obama victory. The likelihood of a recession has been talked about and, probably, factored in to a lot of folks’ thinking already… …if tonight’s debate tracks well for McCain, you’ll see a positive response tomorrow; if it doesn’t, hold on; it won’t be pretty. Call it: ‘Flight to Safety (from Socialism).’”
Hee! Yup, traders are worried that McCain won’t be able to increase his 4% chance of winning through nimble debate tactics. They’ve already concluded that this sucker could go down, and they are worried about socialism, i.e., more government spending.
That must be it. Not the very scary noises coming from the general vicinity of the credit markets.
October 15, 2008 at 5:28 pm
Posted in: Behavioral Law and Economics
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Responses (3)
Jason Kilborn - October 15, 2008 at 5:53 pm
Au contraire–the credit markets are looking better and better. See http://ucclaw.blogspot.com/2008/10/good-news-and-scary-news-on-libor.html The real economy is now the problem, and the serious weaknesses there (depressed business and consumer spending) are finally getting people’s attention now that the financial crisis is abating. That’s my story, and I’m sticking to it.
All Mi T - October 15, 2008 at 6:01 pm
guess Mayer Amschel Rothschild was right “Give me control over a nation’s currency, and I care not who makes its laws.”
deposits and despots.
Joseph Slater - October 15, 2008 at 6:17 pm
Hmm, I had been attributing the recent 900 point gain day as a sign that investors had finally realized that Obama was going to win. Now I’m confused. But it rained today where I am, and I’m pretty sure that is either Obama or McCain’s fault.
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