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September 22, 2008
Obama Shorts the Market
Obama has a short position in the market; when it goes down his vote total goes up. Moreover, he is doing what short traders often do, running a bear raid for over a year and one-half, by talking down the market and the economy ("Bush has messed up the economy...."). His high profile in the press aids the lack of confidence in the market by the millions which hear him daily, all of which helps the market sag making his position more valuable..
September 22, 2008 | Permalink
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Comments
I can't believe the SEC is letting him get away with this, considering the current ban on shorting and all!
Posted by: Anonymous | Sep 22, 2008 7:25:20 PM
While the corelation is not exact, you appear to be right.
John McCain needs the S&P500 to be above 1300 on election day, in order to win. It may, or may not happen..
A surprise interest rate cut could do it, as could a $15 plunge in oil prices.
Posted by: GK | Sep 24, 2008 7:18:20 PM
Yes, and McCain is planning a "short squeeze", in November. He'll go long on America, and Obama will either have to double down, or try to cover his short position. America's stock can be driven down by jawboning, more than I ever imagined, but all voters are intrinsically long on America. Betting against all the voters is a losing proposition, even for Obama.
Posted by: bc | Sep 24, 2008 7:27:49 PM
Um... I've been shorting the economy for years. Are you going to blame me for the economic failings of the Bush administration too?!
Nobody seems to want to mention the fact that these economic problems would be *FAR* less severe if it weren't for the fact that Bush has jacked up the deficit greatly, and has squeezed the middle class to the point that they aren't spending as much, thereby hurting businesses across the board.
Posted by: Mark Kraft | Sep 24, 2008 8:11:36 PM
The ban is on shorting "financial" stocks, not all stocks.
McCain's move pulled Obama into the mess. He cannot hide behind "it's all Bush's (McCain's clone) fault". The Dems need a solution and will be blamed if the economy tanks further without a bailout/solution.
In other words, Obama is "short stopped".
Posted by: ic | Sep 24, 2008 8:33:07 PM
"I am going to become President of the United States if I have to turn the entire nation into a vast wasteland of starving people! I will let nothing stop me! Nothing! Isn't it clear by now that I will do ANYTHING? So stop pushing me and just submit, because otherwise I'm going to make all of you very, very sorry!"
(Moral of the story: continuing to short the market - to force the market down in fact - during bad times would be a very bad idea. No one would go THAT far... would they?)
Posted by: Mike Devx | Sep 24, 2008 10:49:25 PM
Greenspan was screwing up while Clinton was just ...well ask Monica
Posted by: realist | Oct 6, 2008 10:18:57 AM
