Why a Democratic win doesn't crash the stock market?

Discussion in 'Wall St. News' started by CoolTrader, Jan 6, 2021.

  1. Based on current Georgia result, Democrats are likely to control the Congress. I'm surprised the stock market doesn't go down. What's your opinion?
     
    KCalhoun likes this.
  2. Market anticipating stimulus-deficit-spending UP THE WAZOO... markets LOVE that... for a while! That will fuel inflation... up to the point where it becomes too hot... and the Fed will need to consider raising rates and draining liquidity to throttle the inflation. THEN the market will tankeroo!

    :(
     
    Last edited: Jan 6, 2021
  3. Bomp

    Bomp

    I think the correction in tech should continue, but lower rates and more spending is good for financial stocks, commodities, service industry, small and mid cap. There is also the filibuster to consider if democrats are going to roll back major tax cuts, especially the corporate tax.
     
    terzioglu likes this.
  4. Bomp

    Bomp

    I think the paradigm that democrats spend and republicans do not, has evaporated. Both parties moving to a populist agenda.
     
    Windlesham1, bklrnr, ET180 and 3 others like this.
  5. I didn't claim otherwise. "Worse and faster" by the Dems. They will put into place "things" which cannot be undone in the future and will do so as quickly as possible... just in case they lose one of the houses in the next election. (One example.. open borders.... hard to imagine a bigger disaster than that... short of nuclear war!)
     
  6. Can filibuster block legislative efforts by Democrats?
     
    murray t turtle likes this.
  7. Bomp

    Bomp

    Filibuster can block pretty much any legislation. The problem is that it is not a constitutional norm or law, its purely a Senate procedural rule that can be eliminated. It may happen as some democrats have signaled their dissatisfaction with the filibuster.
     
  8. "First thing on the Senate agenda", of course. Eliminate the filibuster rule and they can pass any legislation they want with "50-50 + Kamala". It will be like in the "Odumbo administration + control of both houses", when he said... "You republicans might as well just go home. Nothing you can do here".
     
    KCalhoun likes this.
  9. VEGASDESERT

    VEGASDESERT

    Remember there are still "conservative" dem senators (west Virginia for example)
    that wont sign off on craziness.

    I think the market is betting on gridlock.

    I could be wrong.
     
    Math_Wiz likes this.
  10. Bomp

    Bomp

    Eliminating the filibuster s a BIG thing and they will think twice about it. The republicans have lost the senate but they are naturally more likely to have future majorities as there are 2 senators per state regardless of population. Therefore, Republicans get an over representation from the low populated mid western states and the south. Eliminate the filibuster and pay dearly in the future.
     
    #10     Jan 6, 2021