Investors who worry about tax increases, socialized medicine and Hillary Clinton picking out fabric swatches, should be petrified by the recent polling data showing how low President Bush's popularity has sunk.
A recent NBC/Wall Street Journal poll showed that by a margin of 52% to 31%, Americans want the Democrats to win the presidency next year. Politico.com is reporting that "Republicans across the country are warning that increasing public discontent toward President Bush, the Iraq war and the GOP brand in general threatens to send the party's 2008 campaign planning into a tailspin."
Even though the economy is fairly strong and the stock market continues to set record after record, Wall Street seems out of step with Main Street. People are fed up with high gas prices, the war in Iraq and the bursting of the real estate bubble.
They also don't like corporate fat cats either, so Blackstone Group LP CEO Steve Schwarzman, who stands to earn as much as $677 million from the private equity firm's upcoming IPO, might want to watch how he spends his money before the election. For instance, he should avoid lighting cigars with $100 bills.
Members of Congress are already grousing about the favorable tax treatment that hedge funds and private equity companies enjoy, which was underscored by the Blackstone IPO. There will be more and more complaining about private equity and hedge funds over the next few months.
In fact, there will be such noise about issues of interest to investors ranging from taxes to free trade that it will be difficult to figure out what to believe.
About the only thing that's for certain is that big changes are coming.
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Reader Comments (Page 1 of 1)
6-15-2007 @ 10:43AM
Atlas said...
Yes, I remember the total economic ruin this country had under the last Democratic president with out-of-control budget deficits, historic levels of bankruptcy, dangerous levels of income inequality, stagnating incomes for the vast majority of Americans, outsourcing of labor...wait, no--that's THIS president, we balanced the budget AND had clean government under Clinton. Wake up and smell the coffee, people.
6-15-2007 @ 11:29AM
Sherry Chicago said...
Dear Mr. Berr,
Why do you use scary phrases like "Investors...should be petrified" when referring to Democrats. As "Atlas," said in the previous post, our last booming economy was under Clinton.
All the current Republicans administration hacks care about are the so-called "moral issues" like spreading Democracy, Creationism, being Pro-Life, anti-Stem Cell research, anti-Environment, plus helping people like Prince Bandar make as much money as possible.
Keeping down the deficit & inflation & job creation are irrelevant to the Republicans. If we had a real national healthcare system it would ENCOURAGE job creation because entrepreneurs wouldn't have to provide healthcare for their employees & thus reduce the cost of doing business.
Back about 20 yrs. ago, Republicans were really pro-business & wanted a healthy economy, but now all theY care about are a few special interest groups like Big Oil & the Drug Industry. What America needs now are politicians & a business community with vision who will encourge the development of new energy technologies & stop the outflow of jobs overseas before it's too late. As it it now, we are on are way to becoming just another 3rd World Country with a glorious past. Our current business community is just bunch of over-compensated rich people & their lackeys who expect gigantic tax deduction handouts to finance their wasteful lifestyles at the expense of the rest of us hardworking Americans.