Stock market plunge dents Democratic narrative

[Proserpina]

Obama's upbeat economic assessment is followed by a dramatic sell-off, with Clinton's fate in the balance.

http://www.politico.com/story/2016/01/stock-market-dow-drop-democrats-217855#.wbgwcx4:teK5

Wall Street collapsed again on Friday, extending a brutal market rout that threatens to dent Democrats’ chances in 2016 and give a boost to Republicans who say the world is an increasingly dangerous mess. The Dow dropped 390 points on Friday amid falling oil prices, weak U.S. economic data and more fear of a major slowdown in China. The blue chip index is off over 8 percent so far in 2016, fueling arguments from Republicans that despite consistent job growth, the U.S. economy is in deep trouble.

The stock market is not a direct reflection of the underlying economy, but volatility and major declines tend to add to economic anxiety and make it harder for the incumbent party to hold onto the White House. Americans’ views about the direction of the nation are already dismal, and a collapsing stock market is not likely to help, analysts say.

“This certainly weakens the upbeat narrative that President Obama offered earlier this week in the State of the Union that things have turned around. That’s a much tougher case to make now,” said Greg Valliere, chief strategist at Horizon Investments. “It’s already tough for one party to retain the White House for three terms. And if Hillary Clinton is hoping to run on the fact that things are clearly getting better, that is also now a tougher case to make for her. Average Americans see regular declines of this magnitude and that’s deeply unnerving to them.”

The hope among Democrats is that the current stock market chaos will prove short-lived and fundamentals of the underlying U.S. economy — including strong job growth, low gas prices and a resurgent auto industry — will assert themselves as the year unfolds to ease voter anxiety. But market experts say the terrible start on Wall Street — which is now the worst opening to a year on record — could persist for months and strongly benefit Republican candidates like Donald Trump who paint a very grim picture of the nation’s direction.

“The eighth years of an incumbent’s term in the White House have all been pretty horrible for markets with the exception of 1988 when Ronald Reagan was leaving office,” said Jeff Hirsch, editor of the “Stock Trader's Almanac” and an expert in market history. “And the first five months of an election year are generally very telling. If you’ve got a down year, that’s usually indicative of the incumbent White House party being ousted. That clearly puts a damper on Clinton’s prospects. The stock market is a voting mechanism.”

The dark mood on Wall Street plays directly into the hands of Republicans who used Thursday night’s GOP debate to mock Obama’s upbeat State of the Union address in which the president said anyone who is saying the U.S. economy is in decline is “peddling fiction.”

“The president tried to paint a rosy picture of jobs. And you know, he's right. If you're a Washington lobbyist, if you make your money in and around Washington, things are doing great,” Sen. Ted Cruz (R-Texas) said. “The millionaires and billionaires are doing great under Obama. But we have the lowest percentage of Americans working today of any year since 1977. Median wages have stagnated. And the Obama-Clinton economy has left behind the working men and women of this country.”

Read more: http://www.politico.com/story/2016/01/stock-market-dow-drop-democrats-217855#ixzz3xSAo64ze

[EdwardBernays]

1. The only connection the markets have to the economy

Is that they can damage it when people freak out.

The stock market in particular is a complete illusion.

Clinton WILL and IS being hurt by this with the left, because it illustrates how nonsensical her softly softly approach to these corporations truly is.

[SoLeftIAmRight]

2. it seems that before every election there is a financial crisis

just keeping us agitated

[Fast Walker 52]

3. just a coinky dink, I'm sure