"Will the market plunge if (or when) Obama gets elected as Dem candidate?" No. The market is a discounting mechanism. It will begin plunging as soon as it starts thinking he will be elected.
Maybe we've already had the Obama plunge then. I figure if the market can survive Bush, it can survive just about anyone.
No you're, right, the economy was able to shrug off higher taxes and government spending did not balloon. Clinton was far more insightful and much more of a free markets guy than I think any of the prospects today; you have to give credit where it's due. The 90's were a period of dramatic growth and a major transition period in not only the American market place but also paved the way for much of the global boom we're seeing now. That said, spending didn't ramp up the way it dud under Bush because there wasn't a war, Clinton slashed military spending, and balanced the budget with the Social Security Trust. Under this current President, well, he didn't see a spending bill he didn't like, and when coupled with the war spending, things got out of hand. I am not an idealogue (I think both parties have their heads firmly planted in certain place in their anatomy that does not receive mush exposure to sunlight), but I don't think many members of Congress nor Hilary or Obama could pass an economics 101 class to save their lives. Cheers!
I'm sure you're right - my hope with Obama though (and I'm skeptical of the Dems ability to win back the Presidency simply because they've been as inept as anyone) is that he's smart enough to know what he doesn't know (a tough skill) and will be able to surround himself with smart economic people (actually, I wish he'd start hinting at that in his speeches). Fingers crossed.
I hate what people on ET post in regards to politics just because it will effect their pocket in the short run. This kind of thinking will bring an end to our way of life. Obama's tax increase might put money in the hands of the poor. But the poor bastards will spend it here in the states and revive our economy. If we give tax cuts to corporations, they might or might not reinveted here, or they could bulk their FDI. Please, don't talk economics if you don't know what you are talking about.
Iraq, no intelligent energy policy (see oil and other prices), an inability to think on his feet and present himself well, no leadership, an unwarranted cockiness about his expertise. All of these things have contributed to a sense of malaise in this country that has affected the economy/stocks. The inability of our political system overall to get anything intelligent accomplished is the bigger problem. Both sides need to sit down and work on the big issues that they should be able to come to some kind of consensus/compromise on.