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Thursday, November 06, 2008

U.S. Stocks Tumbles 486 Points after a Historic Presidential Election of Barack Obama

The stock market posted its biggest plunge following a Presidential Election, with euphoria vanishing into a cloud of negativity. its worst post-election plunge on record. In the aftermath of an election there is often a bounce in terms of confidence. Those that supported the winner are in a good mood and most of the public greets the new leadership with a mix of hope. These voters are now back to their normal duties as consumers and workers and now they want some justification for feeling positive. But this year has been different. There was no incumbent running this time and thus no authority figure pulling out all the stops. Both the candidates attacked the policies of the past and essentially neutralized the messages from the White House while Congress spent most of its energy distancing itself from the very actions it was being forced to take.
The Jimmy Carter Presidency tried "tough love" and tried to tell people just how bad things were. He became noted for his downbeat assessments and calls for people to sacrifice. His successor was Ronald Reagan who approached his Presidency as one in which he needed to inspire and motivate. The US population tends to respond better to the inspirational message.
President-Elect Obama needs to act fast, and with a message that starts to reverse the negative attitudes without sugar coating anything. The two most important actions the President-elect Obama could take would be to choose the economic team that will manage the economy and start making remarks that serve to rally the consumer that is fearful and paralyzed by a there future.

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