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the perception that Trump is likely to lose the election=a 10,000 point drop in the Dow.=the DOW would probably shed another 5,000-8,000 points. The NYSE could declare a 30-day emergency,

Posted by Richard640 @ 8:18 on October 3, 2019  
The Morning Line for Thursday
Published Wednesday, October 2, 10:35 p.m. ET

Liz Warren and the End of Days
Sellers turned gutless Wednesday night after swinging a wrecking ball for most of the day. Shortly before midnight, index futures were trading moderately higher. Usually, prices move at night only when impelled by news that makes buying or selling over short stretches nearly riskless.  It wasn’t news that sent the Dow Industrials plummeting nearly a thousand points over the last two days, however; rather, it was a negative drumbeat over the last several weeks that persisted for long enough to feed into a presumably minor bear cycle.


More bearish than any such factors is a political one: the perception that Trump is likely to lose the election. This idea has little force at the moment and is unlikely to gain in strength merely because the Democrats are intent on doing him in. Their tactics have been increasingly desperate and clumsy, and that is no way to win an election. The wild card is the stock market itself, since a prolonged downtrend could shift perceptions of the economy sufficiently to trigger the recession that is surely coming sooner or later.

That would wreck Trump’s chances while boosting Elizabeth Warren’s.  Some Wall Street denizen was quoted recently as saying the markets probably wouldn’t open the day after a Warren victory. More realistic is that investors would have sniffed this out months before election day and discounted it with a 10,000 point drop in the Dow.  Cooler heads would eventually prevail, but when everyone came to their senses and realized that Warren was indeed in charge, the DOW would probably shed another 5,000-8,000 points. The NYSE could declare a 30-day emergency, but that would only delay Armageddon, not prevent it. GOP-leaning historians would blame Fauxcahontas for the subsequent Second Great Depression; while others — socioeconomist Bob Prechter, for one — would correctly see that her time — the end of boom times, that is — had finally arrived.

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Post by the Golden Rule. Oasis not responsible for content/accuracy of posts. DYODD.