Anyone who has been tracking the global markets for the past year has known that the ground has not been very solid beneath the global investment and commercial banks. The meltdowns of Bears-Stearns, Lehman, Merrill, AIG, and WaMu may just be the tip of the icebrg.
Driven by over-leveraging in mortgage markets, over-speculation in oil markets, and the over-spending and over-borrowing on the global war on terrorism, the American economy has been teetering at the edge of a significant course correction if not a major collapse.
Meanwhile, the race for the presidency has been caught in a pigsty. While the post-convention polls have been fluctuating, the predictions for the presidency have been bullish on the Obama futures, with 61% to 39% edge. We received plenty of supporting evidence this week, revealing which way this race may be heading.
As the market tremors spread to Main Street, both candidates have been trying to establish their street-creds by bashing Wall-Street and by proposing to overhaul the regulatory regime.
Given the scale of the economic collapse disfavors the incumbent party, many conservative commentators have come out swinging against the Obama economic plan, branding him a "liberal Marxist", "radical Socialist," and even "a Communist." The label "community organizer" in comparison might be a sincere complement.
2008 US Presidential Election Winner Take All Market (IEM, 2008)
In the wake of the Soviet style "nationalization" - or "bail out" - of some of the esteemed American financial institutions, whom the current administration identified as the RNC political base or "the haves and the have-mores," it really takes a lot of audacity to call Obama an "income re-distributionist," a Robin-in-the-Hood who wants to rob Paul to pay Peter.