November 6, 2008

  • Quick Lesson in Why the Stock Market is Dropping

    I find it amazing that journalists can be so dense in not understanding why the stockmarket is falling.  People who are on the verge of retirement, and who are still letting their 20-something-year-old kids use their parents’ credit cards, know that capital gains tax is going to shoot through the roof under the Obama administration and a near-fillibuster-proof Democrat Congress.

    People who have saved money all their lives, so that they can retire and still afford electricity, running water, food, and a little bingo on the side are seeing it all being taken away from them in the form of capital gains taxes.  (Which Obama has plainly announced he will increase. . . . because after all, only “rich” people have stocks, right?)

    Faced with that, old folks can either pull their money out now, while taxes are low.  Or they can wait until Obama increases taxes, and see more of it go to the government.  It only makes sense, they’re selling now.

    By selling now, they hope they can rescue a little bit of their retirement funds before they get taxed to death.  And still afford to let their 20-something-year-old kids continue to use their parents’ credit cards.  The same 20-something-year-old kids who turned out in droves to elect the candidate whose political party is hellbent on forcing their parents to go broke.

    It’s hilarious to watch people wonder what is going on.  It’s so obvious, and yet people still don’t get it.

    Four legs good.  Two legs bad, people.  Just keep chanting that, and you’ll be happy.