Democrats Hope Economy Tanks

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Summary

Democratic activists predict and hope for failure of the US economy...problem is, their predictions failed

Table Of Contents

1. Introduction
2. Posts on Dailykos.com predicting a nose-dive

Introduction

On the evening of September 25, 2008, while Democrats and Republicans were discussing a $700 billion bailout for Wall Street, Washington Mutual bank was taken over by the Federal Government. Democratic activists on Dailykos.com, where presidential candidate Barack Obama once had an account, scurried to pin blame on Republicans without understanding how the economy works in their premature efforts to declare the end of capitalism.

Post after post predicted that the stock market would collapse the next day and that the US would enter into a deep recession or preferably a depression. The problem with their predictions is that the stock market the next day did not tank. In actuality, it gained 120 points in what CNN Money called a rally.

"Stocks rallied at the end of a tough session on Wall Street, as investors boosted banks and other stocks on optimism that a compromise on the proposed $700 billion bank rescue plan will be announced shortly."

"The Dow Jones industrial average (INDU) gained 120 points, or 1.1% on a late-session rally in its bank and consumer stocks. The Standard & Poor's 500 (SPX) index gained 0.4% and the Nasdaq composite (COMP) was barely changed."

http://money.cnn.com/2008/09/26/markets/markets_newyork/index.htm?postversion=2008092618

Posts on Dailykos.com predicting a nose-dive

The following posts were made on September 25, predicting the stock-market would tank the next day:

Washington Mutual fell and stocks will probably tank tomorrow, sending the public into a greater frenzy and THEY'RE GOING TO BE PISSED.

This isn't going to work out to well for de maverick. -- Good As Gold

We'll see, I think the market is going to tank tomorrow. If it does, it's on their bogus political stunts. -- The Bag Of Health And Politics

Actually the traps gonna snap shut on Mc Cain's head tomorrow when the stock market tanks.

Wamu's failure combined with Mc Cain's stunt = disaster. -- Hat Rabbit

They are tanking in Asia right now look here -- Socio Sam

John Mc Cain now owns the stock market. Watch it totally collapse tomorrow. He'll be lucky to break 30% after what is about to happen. Heck, I wouldn't be surprised if he finishes third to Bob Barr after this...The Dow is going to completely crash tomorrow. China's going to stop buying our debt. The bill has been called in. Gas prices will double in the next 4 weeks. And it's all on John Mc Cain. Just watch. -- The Bag Of Healtth And Politics

This campaign will be over by 10 a.m. tomorrow. Obama will have a twenty point lead by Monday... -- Same

That is BS as is you and others celebrating A bunch of right wing radical conservatives just guaranteed that the market will collapse tomorrow if not in the near future, and Daily Kos is happy. WTF??

You know FDR did unprecedented things to SAVE capitalism.

We the taxpayers were going to own those assets bought, and then be able to sell them later. This was to free up credit markets to prevent the economy to churn to a halt and jobs to be lost. -- Beach Mom

Yhe new Republican plan calls for MORE deregulation and corporate tax cuts to let the market "correct" itself-- which is exactly what brought about this disaster to begin with.

I say, let them go for it. Once the public begins to tear their proposal apart, too, THEY are the one's left holding the bag. Especially, as the DOW continues to tank more each day due to the prolonged indecision. -- Aw Come On

These fuckers. Let them take the blame when the Dow falls 500 points tommorrow. -- Upstate Dem

course the Dow is Coming Down. No matter how much moolah we throw at Wall Street right now. -- CHCH

I may be wrong but I think your off by 500 points. I'm guessing down by a 1000 points. -- De Fluxion10

no... 200 250 pts - I Like Pie

400+ -- Perro Amarillo

1000 points. I might even buy if it falls that far. -- Insult Comic Dog

tomorrow... market tanks -- Jasper Johns

500 points? What's the Big Deal? In the 1987 Crash, the market dropped 22%--and recovered the loss within two years.

22% would be a 2200 point drop. Personally, I think that's the minimum drop required before healing can begin.

No matter what this bill does or doesn't do--times are going to get tougher. House values must drop. The economy must slow. The money that's fallen out of the sky over the past 20 years will dry up and people will go back to tried and true methods of earning capital.

Pain is ahead--it's just the severity and location that's in question. -- CHCH

I think you are right and I think that the market is going to drop over 15% and maybe as much as 25% before this is all washed out. Question is if it will get there before Jan or after.

I look for about 400 off tomorrow. Of course I am pulling that number out of my rear.

Disclaimer I do not have one cent in the market. -- Eagle Cries

Better a crash now during the Bush Administration than being papered over and exploding the day Obama takes over. -- Blue Blue Lady

who will be blamed when trading needs to be shut down just hours after opening because the market is crashing? -- Proud To Be Liberal

From what I've been reading there is very likely going to be a huge drop in the markets. A lot of important organizations are keeping their money in because they were told by the Bush adminstration that everything would get fixed. If it looks like it won't get through...their will be big drops again. With no intervention in the housing market, prices will continue going down until 2011. We are only about halfway through the housing crisis unless something fundamental changes. -- methinshaw

No, it's a game of chicken vs the Market Tomorrow there will be a reckoning on Wall Street on the news the bailout negotiations broke down.

Today the market was up based on the idea that the bail-out was 98% done.

Expect that to reverse itself AND for today's very bad economic news to send the market down fast.

And it will clearly be the house GOP and Mc Cain's fault. -- Siberian

This Only Works If the Markets are Stable. If this is a trap, it only works if the markets stay stable and give the appearance of the Dems championing a bailout that wasn't needed.

I think the markets will tank on Friday with WAMU and no bailout, which will make the Republicans and Mc Cain look like rubes who are ruining the economy. Trap doesn't work then.

Dems just need to let the economy go in the crapper for a bit and then forge a real solution. --- Mich Ree

My prediction DJIA - 400 tomorrow at open. -- nefrocatracho

Somebody asked about after hours trading upthread. They wanted to know if it's any indicator of what is likely to happen tomorrow in the stock market. I think a much better indicator is the foreign stock exchanges because they are trading in full force right now.

Take a look at the Tokyo Exchange. 11:00 AM in Tokyo is 10:00 PM in Washington D.C. Exchange closed for lunch. 10:PM is when Barney Frank announced the republicans walked out on negotiating. Look what happened as soon as lunch ended.

Any questions? -- Phil In Denver