Economic worries? Old news fade fast, and subprime mess has been known for a long time. DON'T GET INTO POLITICAL DISPUTES IN THIS POST But the market seldom reacts, it anticipates; and it's anticipating that a Democrat President with leftist speech will be elected. Of course, when already elected, the stock market does better on Democrat govt's; as the market learns that they will not do all the leftist promises made during campaign. If they did they would became another Carter, and will not get reelected.
Market tanks before inaugeration, thus allowing certain financial gurus to say that market historically does better under democrats. (market rallying before next repub victory adds to the equation.)
The market will, of course, rally after the election of Obama, showing your assertion that this plunge has anything to do with the prospects of Obama being elected is just ridiculous.
More that a leftist President, the market hates uncertainty. After election, uncertainty dissapears; and the market rallies, no matter who got elected.
You think that the market discounting an odds on favorite to win is ridiculous? Don't think you're an economist.
Yes, i think it is ridiculous. In fact, i know it is ridiculous. The reasons the market is tanking are well known to the entire world, except you. How is that possible? And no, I am not an economist.