RUSH: The Obama recession is in full swing, ladies and gentlemen. Stocks are dying, which is a precursor of things to come. This is an Obama recession. Might turn into a depression. He hasn’t done anything yet but his ideas are killing the economy. His ideas are killing Wall Street. They need some certainty, and now everybody in the Drive-By, ‘We don’t know who Obama is.’ We got a story from Jennifer Loven, the Associated Press today: we don’t know who Obama is. All of a sudden now on Charlie Rose, they’re starting to talk about his ties to Saul Alinsky. I’m not joking at all. It’s all coming up on the program. We’ve also got a Reuters story, here’s the headline: ‘Will Democrats Tinker With Mutual Funds, 401k Plans?’ So now they do the story after the election. And they get it right and they tell you what the Democrats plan to do with your 401(k) is, confirming what I told you, a bunch of people did, prior to the election.
The Dow Jones Industrial Average is down 780 points since Obama won the election, and he hasn’t passed anything yet. The seas have not parted; the sea levels have not declined. And guess what we learned today? Vladimir Putin wants to return as the president of Russia. Now, let me give you this in a football analogy. Putin returning to power is like a successful head coach coming out of retirement after learning the schedule for the next four years will be a cakewalk. Imagine Chuck Noll of the Pittsburgh Steelers, Vladimir Putin now becomes Chuck Noll, who has been retired from the Steelers for a long time. Chuck Noll learns that his team will have a series of all home games for the next four years, and the teams he’s going to play are the Detroit Lions, the Oakland Raiders, and the Kansas City Chiefs. He’s going to be playing the patsies in the league. They talk about putting missiles in Europe yesterday aimed at Poland. Now today the KGB comes back, Putin wants power. This stuff is not coincidental, ladies and gentlemen. I actually think the Obama campaign likes this economic chaos, just as they did during the campaign. The more economic chaos there is the greater opportunity for expanded government.
By the way, the news media today, they’re spinning for this. They’re spinning all over the place, what is it, Chris Cuomo today on Good Morning America, (paraphrasing) ‘This market drop had nothing to do with Obama. This market drop is because of bad economic news.’ I even saw, I’m not sure where because I was hustling here this morning, there’s some news agency that reported that Obama is not facing a sinking economy. He’s not facing a sinking economy. That’s exactly right. He’s causing it! He is causing the sinking economy.
RUSH: It was CNN. CNN Money said that there will be no recession and no depression now because Obama won — and that took, what 24 hours? We predicted it. We predicted it right here on the EIB Network. Amazing, how the economy all of a sudden, ‘Oh, it’s not that big a deal, not that big a problem.’ Well, it is. The Dow Jones Industrial Average down over 790 points since Obama won.
He hasn’t even passed anything yet. The truth about this is, the markets work six to nine months ahead. Everybody in the market is trying to figure out where we’re going to be six to nine months ahead. They’re selling and they’re getting out. That 4,000-point drop, that was also due to Obama. In fact, let’s go sound bite number one before we get to Carl Cameron here. This was on CNBC this morning in the Squawk Box show and something they call The Bond Report. Andrew Sorkin from the New York Times, UBS Financial Services director Art Cashin spoke about the Obama transition. The New York Times guy says, ‘Why wasn’t Obama’s attitude toward Wall Street vs. Main Street already baked into the cake? I mean, there’s an expectation Obama was going to win. There’s an compensation he’s talking about Main Street and Wall Street as though they’re two separate things for a very, very long time.’
CASHIN: It’s one thing to be campaign rhetoric; you can understand that. Both of them were talking on a populist vein. But now we’re getting in there; we’re going to be talk about specific packages. I think the market said, ‘Holy smoke! The campaign’s over and we’re still talking like that, so what does that mean as far as opinions and ideology where it’s going?’ Nothing was baked into that cake.
RUSH: So basically here, the market sell-off is Obama fear-based. There’s no question. I know some of the economic numbers continue to be bad, but CNN money says, ‘No, no, no. There’s no recession. There’s no depression! Everything’s fine.’
RUSH: I tell you, folks, we are looking at the largest stock sell-off after an election in American history. The largest stock sell-off in American history! The market is down right now almost 10% since Election Day. (For those of you in Rio Linda, that was two days ago.) This is tracking to be the worst post-presidential election three-day period since at least 1900, the worst so far. The market was down 6% in November of 1948. We’re right now tracking to be much worse than that. However, ladies and gentlemen, the Drive-Bys are not suggesting that Obama has anything to do with this. The stock market still falling, what is it, down now 324; down 486 yesterday. Now, let’s connect the dots. On Tuesday we elected a new president. The new president promised to increase corporate taxes, increase capital gains by a third, increase the top marginal tax rate on income, impose a massive new energy tax that would bankrupt the coal industry.
Did you hear that, Rachel? He wants to bankrupt the coal industry. His party is now talking about a government takeover of 401(k)s. In addition to you losing your 401(k), can I make a point to you about this? Imagine every 401(k) and SEP/Keogh Plan in the country, and the government takes ’em over. They’re going to pull ’em out of the stock market. Your investments are in the markets or wherever else you have them. They’re going to take your 401(k). The way they’re going to ‘sweeten’ this for you is to take your 401(k) back to its August levels before the market decline. They’re going to say to you, ‘We’re going to restore the full value of your 401(k),’ and you’re supposed to have your tongue on the floor panting going (panting), ‘Really? Really? Oh, wow! I love Obama! I love the Democrats.’
Right. Then they take your 401(k) away from you after they ‘restore the value,’ and they put it in your so-called Social Security fund, which is bankrupt, and they’re going to grow it by 3% each year with government bonds, and they’re going to adjust that for inflation. Well, whoopee-doo. If we enter a deflationary period, which a lot of people think we might now — which is not good, by the way. Deflation is bad for producers because they can’t sell the things they produce for a profit. It can drive businesses out of business if we go deflationary. Inflation is bad, too. But deflationary is a horribly bad cycle. They’re going to take your 401(k), put it in the Social Security trust fund, whatever the hell that is. Trust fund, my rear end. Whatever they’re calling it, going to put it there, guaranteeing you 3% interest a year, and the most that you’re going to be able to contribute to it, Rachel, every year is 5%.
It’s not whatever you choose adjusted off the top. But then what nobody’s talking about, ladies and gentlemen, is this. It’s particularly troubling out there. Massive amounts of investment capital will be taken out of the market and given to the government. Imagine all of the millions, hundreds of millions of dollars — your 401(k) and everybody else’s invested wherever you have it invested — taken out of those companies, out of those instruments and put in the government. Can you imagine the recessionary pressure of that? The de-capitalization of the markets? One of the things that happens when you buy stock is the companies in which you buy stock use that money for investment and so forth; borrowing, building, whatever. That’s going to go, if this happens.
So, in addition to you losing your 401(k) to the government at 3% a year for the rest of your life, adjusted for inflation, all that money comes out of the stock market. Okay. So let me start at the top here, connecting the dots. On Tuesday we elect a new president. The new president promised — even before the election, by the way, when we had a 4,000-point drop. The president promised to increase corporate taxes, capital gains taxes, the top marginal income tax rate, a massive new energy tax that will bankrupt coal, and his party is talking about a government takeover of 401(k) plans. So on Wednesday the Dow drops about 486 points. It’s down 346 points today, but of course, according to the Drive-Bys, these two events have nothing to do with each other. It’s just a coincidence.
The market’s down today because of the jobless numbers. That’s how the Drive-Bys see it. Uhhhhh, we have the largest market plunge after an election in history. Thank you, man-child Barack Obama.