Why did the stock market tank after the election?

25 Answers

  • 1 decade ago
    Favorite Answer

    Go back and read some of what I wrote back in June. I'm surprised it's only down 1000. People have been pulling out of the market for the past 3 months in anticipation of this. There is now no reason to invest in the market - any tax advantage (the reason that you would risk money in the market) will be wiped out by our new President. People are putting their money into safer investments (look at how little T-Bills are paying right now, some are barely paying 1%, short terms T-Bills are paying less than 1%).

    People invest in the market based on what they think is going to be happening in the next year or two, if prices are low (like now) and people think things are going to be better in a year or two, they buy. People are selling.

  • 1 decade ago

    The stock market hates uncertainty. Investors don't have a clue what the democratic majority is going to do. And when you tell the investing public that you are going to raise their capitol gains taxes, why would they gamble their money just to have it taxed more heavily. They are getting out while they can.

    Source(s): I can see we're going to get the racist label if we have the gall to disagree with Mr Obama's policies. I've disagreed with MANY liberal democratic policies in the past without being a racist, why now? Because he's black, I have to treat him differently? Screw that.
  • Anonymous
    1 decade ago

    Housing market bust


    High risk mortgage loans and lending practices

    Securitization practices

    Inaccurate credit ratings

    Government policies (Clinton and Bush Administrations)

    Central Bank Policies

    Financial Institutions debt levels

    The continuation of a bear market

  • Anonymous
    1 decade ago

    It was tanking before as well, but you never heard about it because of the amount of media space covering the US election. The entire world was watching, but now its back to the business of the economy, hence why your hearing about it. Many banks around the world are collapsing, Iceland is having an economic crisis as well.

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  • 1 decade ago

    Did it really? Obummer!

    The HSI was in free-fall an hour ago, but the've stablized at around 3% down, but the NIKKEI is falling now, currently down 4.35%. The ASX (Australia) is down 3.65.


    Bill M.

    Great question! I don't think it's fair to blame people like Frank Reines. Their job was to make shareholders money and they owe nothing to the American People. I blame those we voted for that work for us. Those that deregulated Fannie and Freddie, and those that blocked efforts to regulate them.

    Bill Clinton signed the bill into law, written by Gramm, Leach and Bliley. Voted for by most Republicans and Democrats in Congress.

    Efforts to regulate were blocked most strongly by Barney Frank and Maxine Waters, among other House Democrats, while similar activity occurred in the Senate too.

    Attacks on Armando Falcon for suggesting regulation of Fannie and Freddie were most aggregious by several members of the black caucuss, and Barny Frank.

  • 1 decade ago

    Two reasons:

    The increase that happened 3 days before elections was artificial and meant to support McCain


    leak of news about Ford and GM losses

  • 1 decade ago

    the underlying cause of the earlier crashes are still there and maybe for a few months...

    add in that dems make the stock market nervous

  • 4 years ago

    american needs to pay for the illegals that have been delivered in to vore, reward the blacks and minorites for balloting and thier new young babies they are going to be making this 365 days, then finally fund alkaida and sell u.s. to china. by employing 2016 human beings will talk chinese language and spanish and each white lady will date a black.

  • 1 decade ago

    Read the paper. October was the worst month in 20 some years for consumer spending. The Auto Industry was in Washington crying for more money.

  • Anonymous
    1 decade ago

    Why did it tank in the first place?

    It tanked all over the world. How do you think the rest of the world generally feels about Obama?

    Hmm? Hmmmm?

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