Post-election news shows that a lack of trust in a reelected President Obama to steer America’s turbulent financial waters lead to the Dow dropping as much as 313 points on Wednesday.
That’s reflects a huge lack of faith in the president and his capabilities, specifically in financial circles from within and outside the U.S.
It also shows that many thought the country would do better financially if Romney won the election instead. And they banked on it.
The Wall Street Journal says concern that Obama will not be able to strike a budget deal drove the Dow drop following the 2012 Presidential Election. And that makes sense, as nothing really changed in Washington since Republicans still control the House and Democrats still control the Senate.
It’s a stalemate.
And what’s worse is that while half of the country put their confidence in the American leader enough to give him four more years to try and accomplish the goals he outlined in 2008, they forgot that the rest of the country, along with investors, did not appear willing to do the same. So how did they think the ‘Fiscal Cliff’ could be avoided?
“Yesterday, obviously, was a big slide, but it wasn’t a one-day event,” Sean Kelly, the New Jersey Knight Capital Group’s head of institutional equity trading said.
According to Kelly the outlook isn’t good because he says that, “There was never a point yesterday where you saw buyers come in.”
In other words, Kelly feels that if the Dow had plunged one day and been back to normal the day after there would be more hope of a turnaround. Instead, the fact that this wasn’t just a one-day Dow plunge shows few have confidence Congress is going to work with the president before they come to the ‘Fiscal Cliff’ facing America.
And who could blame Congress? It isn’t like the president has been very willing to meet them halfway the past four years–or even make prudent financial decisions based on what all of America wants. So the post-election news is likely to continue to be negative where America’s finances are concerned.