I am specifically talking about a blue wave, and how the Market was responding through the night and into today. The Market is largely responding to the fact that there’s no blue wave and the high probability that the Republicans will hold on to the Senate.
Market will react positive to the stimulus and negativity to any increased corporate taxes. Market 101. Of course the piling of debt will eventually take its toll.
China is definitely happy as hell right now their currency crashed hard and then rebounded on the recent news Biden will probably will.
Among the prevailing theories that actually makes sense today (among the financial talking heads) is that, with a Republican Senate, Biden’s proposal to raise the capital gains tax is DOA.
But that doesn’t make the economy pick up. That just bouys markets.
Putting money directly into people’s hands who will immediately spend it into the economy will lessen the impact of the for real Depression that we are looking at and make the recovery happen faster.
But the GOP would never do that.
So… we get austerity and worse outcome that they can run on in two years.
No I expect the GOP to act just like the left did for the last four years that everything is some conspiracy from Russia but this time is it will be China