Friday, May 21, 2010

401K's and elections

I believe McCain's campaign was killed when middle class swing voters received their 401K statements as of August 31 , 2008 in mid October, 2008. People who just lost one third of their life savings tend to be susceptible to promises of "change".

So, if this continues, it can't be good for Democratic hopes for the fall:

It's a sign of stock market weakness. It's a sizable double-digit loss. It's a headline-grabbing event that ratchets up the fear factor of investors.

It's an official stock market correction we're talking about. For the first time since the bull market began in March 2009, the benchmark Standard & Poor's 500 index has closed 10% below its recent peak, hit just four weeks ago on April 23. It's down 12.0%. In fact, all the major U.S. indexes are now in correction territory, including the Dow Jones industrial average after its 376-point plunge to 10,068 on Thursday, the tech-dominated Nasdaq composite and the small-cap Russell 2000.

If Republicans shut up about Nancy Pelosi, and talk about deficits, unemployment, retirement savings accounts, home values and illegal immigration, Democrats will be in trouble. Fortunately for Democrats, we can assume at least three more "Christian conservatives" will be revealed as either adulterers or gay by election day, and the Republicans will continue focusing their attack on a 110 pound 60+ year old grandmother.

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