A Mad Mike Commentary: The Democrats have no courage and Wall Street will triumph once again

There will be a lot of reasons for tonight’s midterm results, not the least will be the remarkable lack of courage displayed by the Democrats.  While in power they managed to enact landmark legislation from health care to cap and trade, climate change and environment issues, significant financial reform and a wealth of other legislation that may well be undone by the party of the Right.

In point of fact the Democrats passed legislation they have been wanting to pass for over 60 years, and yet, when it came time to brag about it, they ran away from it.  The message that was communicated to the people was nothing like the facts supported by the Democratic agenda and yet the Democrats allowed the Republicans to define them.  Their lack of courage will cost them and cost them dearly and perhaps it should.

So who really wins tonight?  Well there is a curious upside to a Republican takeover of the Congress and that is on Wall Street.  Although that should come as no surprise here is an interesting story from The Christian Science Monitor:

For voters distraught about the prospects of a Democratic bloodbath in the midterm elections and the potential loss of control of Congress, consider this: a changeover may be great news for the stock market.

Conventional wisdom suggests Wall Street may be both responsive and suggestive–to Republican control of government and the pro-corporate policies typically supported by the GOP. But the evidence suggests that the stock market actually fares best under a divided government, when the party that controls the White House differs from the majority party in Congress. In fact, the winning combination for Wall Street seems to be a Democratic president with a counterbalance of a GOP-led Congress.

Recent studies suggest some aspects of the economy generally perform better under Democratic presidents than Republicans. This appears to be specifically true of the stock market. Between 1975 and 2009, the Dow Jones Industrial Average climbed 11.6 percent annually on average during Democratic administrations, compared to 8.5 percent during Republican presidencies.

But here’s where the real difference shows up.

Stock market performance over the same period has been markedly better under divided control of government – when one party has controlled the White House but not both chambers of Congress – than when the party in the White House also has a majority in Congress. The Dow rose by 6.1 percent annually on average during periods of unified government, but climbed at more than twice this pace (by 11.1 percent annually on average) during episodes of divided control.

The Dow does also seem to fare slightly better under Republican control of the US House, growing by an average 11.1 percent annually between 1975 and 2009, compared to 9.0 percent when Democrats control the House. But, still, no political power arrangement correlates better with strong stock market performance than a government divided between two parties.

So, that being said I’m going to vote now.  I won’t vote for a Republican so I will vote for the Democrat, hopefully one with the courage of his or her convictions, few and far between as they may be.  After all I really don’t want Glenn Beck and the rest of the radicals at Fox News telling America about what is happening in Congress. Do you?

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10 Responses to A Mad Mike Commentary: The Democrats have no courage and Wall Street will triumph once again

  1. Holte Ender

    November 2, 2010 at 3:19 pm

    Congressional democrats have let the party down badly,really the whole of Congress has done nothing to be proud of in the past two years, with the exception of odd individuals here and there.

    The White House has been forced into compromises just to get an appearance of action.

    • A Michael J. Scott

      November 2, 2010 at 4:17 pm

      Well I think they’ve done a lot of things to be proud of they just haven’t bothered to tell anyone. They let Glenn Beck tell them….Bad idea.

  2. Jess

    November 2, 2010 at 4:01 pm

    It does not help matters, when we don’t have our own propaganda news arm like the republicans do, to get our accomplishments out to the public. That being said, get out and vote and bring some friends. I think there has a lot been done under the radar. Think expansion of child health insurance, Lily Ledbetter law where discrimination as far as paychecks will not be tolerated(paraphrasing that one) VA getting more than it has had in a while as far as funding for our vets, active and retired. I have many more but I am having a way better time at the senior center, listening to stories from people about how they never had the vote and how women watched as their mom’s were not allowed to vote. One older guy was in Alabama when he was younger and was beaten the first time he was allowed to vote as a black man, but he went and kept going till this day. Said it is our civic duty to vote and take part for the people that fought so hard for us to be able to. Just some great people I am hanging with today in this place. I’ve visited many times and every time it gets better.

    Fascinating stories from some of these people, as far as how far we have come as a nation but how far we have to go still.

    I’m having lunch with some nice people I have been ferrying back and forth this morning and have a couple car loads left to take after our lunch. Oh and not for nothing, I was proposed to by an 80 something year old this morning, yeah so how do you like that. He got all dressed up to go to the polls and ask me to marry him. My grammy in law said he was waiting patiently and telling everybody that would listen, his girlfriend was coming to bring him to the polls.

    • A Michael J. Scott

      November 2, 2010 at 4:18 pm

      Great anecdotes here Jess. Wonderful….Thanks as always and we have a long, long way to go as a nation, and after this election we will take several steps back and be forced to retrace them. How sad.

  3. thejeanmachine

    November 2, 2010 at 4:28 pm

    We’ve a congressman who was against health care reform when he thought it unpopular. Once he realized that it would pass he was for it. Once it did pass he was against it. I’m against him so I didn’t vote on that ticket. I’ll not vote for a Bible Thumper either.

  4. Rusty Shackelford

    November 2, 2010 at 6:30 pm

    My goodness folks,calm down its not the end of days,its just americans saying enough is enough.
    Adding five trillion to the national debt since 2007 was’nt a very good idea,neither was pushing through a bad healthcare bill,nor cap and trade.
    Telling the american people the stimulus package would keep unemployment under 8% was’nt very bright either,they kind of remember stuff like that and saying it saved or created three million jobs….come on man.
    I read an article today that said the left should stop talking about the mess they inherited,if there was’nt a mess they would’nt have gotten elected.They were put in office to do something about it.Mission not accomplished.

  5. C.H. McDermott

    November 2, 2010 at 8:14 pm

    I’m bummed out, but this is not a fragile country. It seems like human nature; we have to really screw up to learn a lesson.

    • Jess

      November 2, 2010 at 9:30 pm

      Me too, just found out Alan Grayson was beaten by a damn tebagger. I cannot believe that people are so willing to vote against themselves. I’m going to go smoke some sticky icky and read a book instead of watching returns. It is too depressing for words that all these teabaggers are going to be in the halls of government, too depressing. I guess the republicans found their useful idiots for this election though, in the baggers and Citizen’s United courtesy of the SCOTUS justices(yeah you Thomas) who attended the Koch brothers secret meetings. Damn just too depressing after such a good day taking people to the polls and nice discussions with the older people.

  6. Rusty Shackelford

    November 2, 2010 at 9:46 pm

    Krauthmammer today: “Its not an election,its a restraning order.

  7. Demeur

    November 2, 2010 at 10:02 pm

    It’s obvious that neither congress nor corporate America will look out for our best interests. I say we start pulling our money out of the system and see what happens. Cash in the IRAs before they become worthless. Pull your money from the banks that are foreclosing on mortgages and stealing homes. You’ll see things turn around in a New York minute. They’ve been playing the fear card on us for the last 10 years now it’s time for us to do the same on them.

    I call on all 99ers who live in states that flipped republican to write/email their new senators and ask “Where’s my job”?