Monday, November 5, 2012
Romney, Obama election threatens markets
If Romney wins, he has promised to replace Bernanke and tighten. Tightening and taking our medicine would have been a good idea in 2008. If we'd done it then we'd just be starting to come out of it now. Tightening after throwing 28 trillion dollars at the banks would now be disastrous. If he has any intention of following through, rates will rise and the market will tank. Depression. Not great for gold either. But the financial chaos that will ensue will be good for gold.
If Obama wins: Bernanke stays, accomodation reigns, rates stay low: good for gold. But capital gains go up so the banks will sell before New Years and the markets will tank.
Easy peasy lemon squeazy.