Feeding at the trough

Geoffrey Manne —  4 November 2008

I love it!  Today saw the “biggest presidential election day rally [in the stock markets] in 24 years.”  And why, you ask?  Is it because the seemingly-certain Obama victory has calmed all our fears of economic catastrophe (to say nothing of terrorist-induced catastrophe)?  Nope.  According to Bloomberg,

U.S. stocks advanced in the biggest presidential Election Day rally in 24 years, led by energy and banking shares, on rebounding commodity prices and speculation the Treasury will bail out more financial companies. General Electric Co. added 7.6 percent while CIT Group Inc. and Principal Financial Group Inc. climbed more than 22 percent after people briefed on the matter said the government may broaden the focus of its rescue program.

Yes, commodities prices rose.  But at least some of the gain is aparently attributable (to the extent that any of this can really be sussed out) to a heightened expectation of massive corporate welfare.

Meet the new boss.  Same as the old boss.

Geoffrey Manne

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President & Founder, International Center for Law & Economics