In the two days following his election, the stock market lost ten percent of its value and suffered the worst two-day drop since 1987 – down nearly 500 points on November 5th and down another 440 points yesterday. Of course, the economy is suffering, and we are all reading the gloomy headlines. The economic chaos of recent months had a lot to do with the outcome of the election.
But investors look to the future, and throughout the campaign they heard Obama promise a future of major tax hikes if he was elected. They also heard top Democrats on Capitol Hill talking about eliminating the tax deductibility of 401(k) contributions, which are a major source of funding for the markets. Democrats want to take away that incentive to invest because they claim it “helps the rich.” Well, it also helps a lot of middle class families who might not otherwise participate in retirement plans. If Democrats take away the tax deductibility incentive, the stock market stands to lose considerably, and that won’t be good for anyone.
Here’s another example. During the campaign, Senator Obama said he would meet with America’s enemies without preconditions, including Iran’s Holocaust-denying dictator Mahmoud Ahmadinejad, and he promised to retreat from Iraq. Yesterday, Ahmadinejad sent his congratulations to President-elect Obama, but he added a few preconditions of his own.
In his message, Ahmadinejad demanded that “U.S. intervention be limited to its borders” and that America “reverse its attitude” toward the Palestinians (Israel), Iraqis and Afghans. In other words, Ahmadinejad wants us to end our alliance with Israel, retreat from Iraq and Afghanistan and do nothing while Iran dominates Syria, Lebanon and the entire Middle East.
Meanwhile, the New York Daily News reports that the reaction of terrorist sympathizers in Iraq to Obama’s election has been mixed, but one prominent jihadi leader reportedly stated, “Now the fight has begun!” He is clearly encouraged by Obama’s promise to withdrawal U.S. forces from Iraq, believing they will be able to take over the country once we are gone."
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