This is a sign of whats more to come.
Wall Street succumbed to heavy selling Wednesday in a post-election rout triggered by concerns that sharp divides in Washington will create more fiscal uncertainty as the nation hurtles toward the “fiscal cliff.”
Today’s Markets
The Dow Jones Industrial Average plunged 313 points, or 2.4%, to 12933, the S&P 500 slid 33.9 points, or 2.4%, to 1395 and the Nasdaq Composite fell 74.6 points, or 2.5%, to 2937.
The selloff was broad, with every major sector falling at least 1%. Leading the way lower were financial and energy stocks. The Dow closed below the 13000 mark for the first time since August 2.
Volatility jumped 7.7% as tracked by the CBOE’s VIX, regularly called Wall Street’s fear gauge. Meanwhile, traders took shelter in the safety of U.S. Treasury bonds. The yield on the 10-year dropped 0.0113-percentage point to 1.638%.
Election Season Finally Comes to an End
After one of the most contentious campaigns in recent memory, Democratic President Barack Obama beat out Republican challenger Mitt Romney to secure a second term as president. Polls leading up to the election showed the two locked in essentially a dead heat.
The sense of business as usual cascaded to Congress as well, where Republicans held control of the House of Representatives and Democrats held the Senate. As a result of the remaining sharp divisions in the White House and on Capitol Hill, market participants almost immediately shifted their focus to the looming fiscal cliff. The fiscal cliff refers to the painful spending cuts and tax hikes that will automatically go into effect in January should politicians in Washington, D.C. not get the nation’s fiscal situation under control.
“Given the opposing views on the speed and degree of fiscal consolidation necessary, the status quo outcome implies difficult negotiations ahead on the fiscal cliff … and the debt ceiling,” analysts at Nomura wrote in a note to clients.
Echoing that view, Moody’s Investor Service said delays on further budget action are “increasingly likely,” according to a report by Dow Jones Newswires. The ratings company also reiterated its warning that it may cut the American’s credit rating down from its current top-notch status. So far, Standard & Poor’s is the only major rater to have the U.S. rated at less than a triple-A.
Barclays chopped down its year-end view for the S&P 500 to 1325 1395 as a result of the uncertainty in Washington.
“With a polarized federal government we see little reason to increase the probability of avoiding the tax cliff, avoid brinksmanship over the debt ceiling or to expect pro-growth tax and entitlement reform in 2013,” the investment bank’s Barry Knapp wrote in a note to clients.
European Jitters Return
Traders were also paying close attention to Greece, where the country’s parliament was set to vote on yet another austerity package aimed at easing its enormous debt burden. The vote is critical in securing another round of rescue aid from the European Union and International Monetary Fund and stave off a debt default that could send shockwaves through global financial markets.
Commodities sold off on the back of the weakness in equity markets. The benchmark crude oil contract plunged $4.27, or 4.8%, to $84.44 a barrel. Wholesale New York Harbor gasoline nose dived 4.1% to $2.589 a gallon.
In metals, gold fell $1.00, or 0.06%, to $1,714 a troy ounce.
Foreign Markets
The Euro Stoxx 50 fell 1.4% to 2501, the English FTSE 100 dipped 0.57% to 5851 and the German DAX sold off by 1.3% to 7285.
In Asia, the Japanese Nikkei 225 slipped 0.03% to 8973 and the Chinese Hang Seng climbed 0.71% to 22100.
This is what we have to look forward to for the next 4 years, thanks for nothing.
How can you call yourself American and still cast a vote for that idiot, Obama? Do you really hate this country that much. Are you delusional? These are questions at least half of America is thinking about the other half who voted for the fraud, Obama.
Obama is a fraud. He has fooled you all. You believed he would change America for the better, he didn’t. You believed he was born in America, he wasn’t. You believed he would be a good president, he isn’t. You believed he speaks the truth, he doesn’t.
You believed every lie he told you, and now the rest of the country will have to pay for it. It’s easy to vote for higher taxes, when you don’t pay any. Almost half the country doesn’t and those are the people we need to look at. Those are the people who voted for more debt, higher taxes, less oil industry. These are the people who shouldn’t be allowed to vote. If you don’t work, pay taxes, live on welfare, you shouldn’t be allowed to vote. Because you have nothing to lose, like the rest of us.
We need to start a radical take over of this country and it needs to start now. We need to take our country by force. Do you think that George Washington or Abraham Lincoln would have just stood by an do nothing? It is time for civil unrest. Do any of you have the guts to stand up for what you believe in, or are they just words.
This is the year America’s Team will win it all, and no I am not talking about the Dallas Cowboys. Well, yes the Dallas Cowboys will have a great year, but the new America’s Team, Mitt Romney and Paul Ryan will win it all this year and take this country back from the depths of hell.
This 6 year old kid has created a shit storm from the left, even calling for this kid to be killed and his parents killed. How tolerant of them. Why don’t people go after these leftist scum for calling for these people to be killed? Isn’t that illegal? Last time I check, you can’t go around making threats like this. I guess it is OK if you’re on the left.
If the Justice Dept. had any balls, they would go find and arrest the people who made these threats. One person actually left a comment asking if someone would kill this kid. That’s solicitation of murder in my book.
Read the original article below.
Patriot Update recently posted a video on YouTube entitled, “6-Year-Old Gives 10 Reasons NOT to Vote for Obama!”, which has caused liberals to go on the warpath. With over 350,000 views and climbing, the venomous and hate-filled comments from the left are intolerable. Liberal around the country are accusing the parents of “brainwashing” and “exploiting” their child. (Somehow a bunch of elementary school children singing praises to Obama doesn’t count as “brainwashing or exploitation.”) Ironically, the left couldn’t care less if you abort your child. Teaching them conservative values, however, is tantamount to child abuse!
This should serve as wake up call to all conservatives. Patriot Update is calling conservatives to stand together and defend our beliefs against this liberal onslaught. Currently, there are more negative comments from liberals than there are positive comments from conservatives. We’re asking you give the video a “thumbs up” and express your opinion in the comments section of the various web sites that are discussing the video. We must unite and support our conservative values and freedom of speech.
Here are some examples of the hate:
Barack Obama
As Obama has shown in recent comments towards businesses, Obama would have no limits on what he does if he is re-elected. Obama would have nothing to lose, he can’t be elected to the oval office anymore. So without having to worry about being re-elected, Obama would ram through all of his socialistic ideas. Is this what we want to happen.
Obama has already shown his disdain for business and the rich. Whether you like the rich or not, without the wealthy this country would be a third world country. We need people to make lots of money and re-invest back into their business so that they can hire people like you and me. Obama can’t stand the wealthy. He would rather take all their money and redistribute their hard earned money and give it to the undeserving.
I don’t know about you, but that scares the hell out of me. This is grade school, where everyone gets a ribbon for participating. Their has to be winners and losers in this life. Not everyone can have the same lifestyle. We can’t let some dictator take money from the rich and give to the poor. This is Robin Hood.
Join me and millions of Americans and vote this guy out of office this November. Lets lift the darkness that has been cast over the country these last 3.5 years.
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