What must Obama be thinking? …, uh lousy day, one stinkin day! Bernanke did me in. waited til after th ‘lection, Ida won, #2&$#% it! (People don’t think in regular words).But I wonder…hmm. It was Bernanke’s move alright, but the background in which it occurred was the resounding defeat of the Democratic party. A thousand uncertainties were removed. The election results leave no doubt whatsoever that the Obama agenda has been capped. The free market system is very flexible. It can accommodate a wide set of rules, but the one thing that stops it cold is when the game has an unknown set of rules.
Now we are sure Cap and Trade is dead. Card Check is too. The “1099 rule” will be withdrawn. Obamacare will, at a minimum, be modified to something less onerous for business. Now you can estimate the cost of adding an employee where you couldn’t do that before. Maxine Waters’ comment that “Socialism is the goal” rings hollow now. Her threat is now but a joke.
Bernanke’s step was risky and bold. It could take the economy either way. It all but assures Carteresque stagflation if businesses don’t respond. It offers good promise if they do. The market would not react to such a step as it did if it were a step into a darkness willed with unknowns. No Barack, it was not the election that you lost by a day, it was the election that saved the stock market by a day, or maybe it was two.