Sen. John McCain’s newly announced running mate, Sarah Palin, has already taken her fair share of criticism. And now John Tammy, senior economist with H.C. Wainwright Economics, is even blaming her for last Friday’s plunge in the stock market:
Alongside last Friday’s announcement that Alaska Governor Sarah Palin would be John McCain’s running mate, the Dow Jones Industrial Average fell 170 points. Stocks have shown weakness ever since.
While there are many factors that move markets, a looming electoral contest between a tax-hiking Democrat versus a nominally pro-growth Republican surely weighs heavily on market psyche. It says here that the markets concluded last week that whatever John McCain’s true economic views, on Friday he handed the election to the anti-growth candidate with his selection of Palin.
Stocks were presumably booing a running-mate choice that will greatly aid Barack Obama’s election in November. Running against a candidate suddenly much less credible thanks to the Palin selection, Obama will now have much less reason to temper the liberal rhetoric that’s put him within striking distance of the White House.
Tammy also goes on to say that McCain’s tax-cutting, pro-growth credentials are now severely damaged. If he’s willing to nominate Sarah Palin (a person with a thin political resume whom he hardly knows) for political expediency, are all his economic positions similarly flimsy? Remember, he vehemently opposed the Bush tax cuts just 8 years ago and only recently changed his position.
Palin demonstrated in her convention speech last night that she can hold her own, and the dismay at her selection actually says more about McCain than it does about Palin (picking a possible president of the United States after a meeting and a phone call is not suggestive of cautious, careful decision-making). More importantly, the stock market has historically done better under Democratic presidents, so if McCain really has handed the election to Obama, we all have something to look forward to.
Business Insider Emails & Alerts
Site highlights each day to your inbox.