This page has been archived and commenting is disabled.

The Morning After

Tyler Durden's picture


Obama has been reelected, the Senate remains in the hands of the democrats, while Congress is controlled by the GOP. Most importantly, the printer is firmly in the hands of Ben Bernanke. In other words, nothing has changed, as was largely expected all along. The worst case scenario - a protracted litigation, challenging the results of the election - has been avoided after Mitt Romney contested shortly before midnight, and as a result the immediate downward gap in risk following the election has been largely recouped overnight. More importantly, '4 more years' of the same monetary policy and no end to currency dilution have resulted in a nearly $50 jump in gold overnight with the metal in the $1720s this morning, because while the Fiscal Cliff remains hopelessly unresolved, and the baseline scenario that the market will need to tumble to shock politicians into waking up, remains (as does Goldman's 1250 year end S&P price target), the reality is that no matter what happens, Bernanke and crew will print and monetize the coming deluge of debt (which would also have been the case if Romney had won). And with total debt set to rise to $22+ trillion over the next 4 years, a deluge it will be. Most importantly, with Obama reelected, Europe is now "off the hook" and can finally rock the boat, which means Greece can take its rightful place at the front of the domino chain. Remember: the latest Greek austerity vote is today and voting (i.e. debating) has begun, and with vote results expected later today. It also means that the military festivities in the middle east, where the US now has 2 aircraft carriers and 2 marine assault groups, can resume.

A just released Op-Ed by Pimco's El-Erian touches on all the key points:

Now, the morning after an expensive and acrimonious campaign, a re-elected President Obama must find a way to get Congress to step up to its responsibilities on economic governance. The election did nothing to heal the seemingly intractable partisan divisions in Washington. In fact, the bitter tone of the presidential contest could well encourage further polarisation.


Continued Republican control of the House and a filibuster-prone Senate suggest that President Obama will need to aggressively follow through on his economic vision while naming and shaming Congressional disruptors even more. This could do more than strategically align citizens’ desire for clear economic direction with their low opinion of Congress’s effectiveness; it could also influence the behaviour of new members coming into Congress (and there are quite a few of them).


While markets wait for this to happen, and unfortunately it could take quite a while, bond and equity investors could well experience a series of “Groundhog Days” – finding that a hyperactive Fed (still struggling to compensate for the paralysis of other policymaking entities) remains their best friend; and that the fiscal cliff, Europe’s debt crisis and Middle Eastern geopolitical risks continue to constitute threats to the asset classes’ favourable correlations and low volatility.


Have no doubt: yes, an enormous sum of money was spent on the campaigns; and, yes, many promises were made as the candidates sought to differentiate themselves. Yet, after an initial flurry, it is essentially déjà vu for investors. They will continue to hope for political sputnik moments while worrying about potential market instability.

Some more immediate thoughts, with an FX bias, from SocGen:

Can we expect a risk-on mood following Obama's re-election? In the very short term, that may indeed be the case: his victory means a loose monetary policy and weak USD policy will underpin economic activity in 2013. It implies low US swap rates and US bond markets outperforming the eurozone. However, we remain cautious as we see the initial market reaction as quite muted.


From a FX standpoint, we would see a lower USD/JPY via the interest rate channel (200dma at 79.62) and a higher AUD/USD (risk-on mood and hopefully more reassuring Chinese data, the 28 Sep high at 1.0474 or even the 21 Sep high of 1.0519 may be in sight). The profile for the EUR/USD is not as clear as eurozone drivers remain centre stage. Greece, Spain and, to a lesser extent, Cyprus and Slovenia are still potential sources of stress.


Cautious medium-term outlook. We do not think the initial market reaction constitutes a lasting trend. The US still must address the fiscal cliff over the coming weeks, with what will probably be a divided Congress. That is where the challenge lies. The US administration will have to renew more than half of the existing fiscal measures to avoid a marked slowdown in activity. This will have to go hand in hand with the first (smooth) signs of efforts in terms of fiscal discipline to satisfy rating agencies. Will it be enough to keep markets calm?


Risk factor. In the second scenario, were US structurals to come to the fore and take a turn for the worse, the USD and US bond markets would be in good position for a huge sell-off, with the debt ceiling and rating agencies on the radar, and 2008 still fresh in mind. This is a just risk factor for now. 10Y US swap rates have lost 200bp. The EUR/USD hit 1.60, with a completely different eurozone story. Should such a scenario occur, the cross would have to revisit 1.35 (2011 highs), before contemplating 1.4950 (2011 highs).

And as usual, the comprehensive market recap, via DB's Jim Reid:

Asian markets are retracing earlier losses with major equity benchmarks now off their intraday lows. The Nikkei, Hang Seng, KOSPI were all down somewhere between three and four-tenths of a percent earlier but are now mostly unchanged on the day. The S&P 500 Futures are also off the lows but still 6pts down since the US close. Gold continues to edge higher, up nearly $9 in the overnight session to $1725/oz as the Dollar index continues to weaken. Treasuries are also trimming back some earlier gains although the 10yr yield is still down 6bps at around a 3-week low of 1.688% as we type.

Clearly this is a developing story but the win for Obama likely ensures that money printing is here to stay which is market friendly. It’s still far too early to suggest what it means for the fiscal cliff though. Only time will tell on this front as it depends on how co-operative the Republicans feel after a defeat. This story will now slowly start to unfold.

As we conclude the key vote in the US, another vote to watch today will be in Greece as the Parliament decides on the austerity measures that are prerequisites for the next tranche of the bailout. According to Der Spiegel a narrow victory looks likely at this stage which would see the coalition government secure just enough votes (154) to pass it through the 300 seat parliament. Meanwhile a 48-hour planned protest that started yesterday saw 16,000 Greeks reportedly take to the streets in Athens. Apparently numbers were slightly disappointing which was blamed on public transport workers being on strike!! The Greek tensions have been overshadowed by events in the US but it remains a live issue.

Staying in Europe, markets yesterday perhaps got their first explicit signal from Rajoy with regards to the bailout prospects. The Spanish PM told us that it makes no sense to ask for a rescue if Spanish spreads stay the same. He also added that he’d want to know how much yields would fall with a rescue. Interestingly these headlines fail to provoke much weakness with the 10-year Spanish bond yields finishing the day 9bps lower at 5.66% despite a brief post-headline spike. The market doesn’t appear to be overly concerned on the timing of a Spanish aid request as long as the conditional backstop from ECB remains in place. This standoff can't last forever though and at some point the market will likely lose patience. This however doesn't seem to be imminent.

Beyond Spanish bonds and despite an uninspiring day for Euroland data, yesterday was overall a positive day for risky assets. Equity markets rallied on both sides of the Atlantic with the CAC, DAX and the S&P 500 finishing +0.87%, +0.70% and +0.79% respectively. US equities performance was helped by strength in cyclical sectors such as Energy (+1.57%), Financials (+1.21%) and Industrials (+1.10%). Commodities enjoyed a late surge into the final hours of US trading with Gold and Brent rallying +1.8% and +3.1% to $1716/oz and $111/bbl respectively. This was perhaps prompted by hopes of a President Obama victory and another term for Chairman Bernanke or at least someone in his mould.

Taking a slightly closer look at the data flow the final euro-area October services PMI fell slightly on the month driven by Germany’s headline PMI and a worse-than-expected reading for France. The good news is perhaps a better peripheral reading as Italian and Spanish services PMI edged higher in October to offset a weaker manufacturing sector. That said our economists noted that assuming no change for the rest of Q4 the October composite PMI would point to a GDP contraction of 0.5% qoq in Q4, below the -0.2% qoq that they are forecasting.

Looking at the day ahead, industrial output in Spain and Germany will be the main releases in Europe. The EU will also release its autumn economic forecasts later this morning while we might also hear from Draghi as he speaks at an event in Frankfurt at around midday. Merkel will also address the European Parliament this afternoon at 3.15pm London time before meeting PM Cameron at 10 Downing Street for a dinner later this evening. The key event though will likely be Greece’s parliamentary vote (likely to take place later tonight). It will be a quiet day as far as US data flow is concerned with US consumer credit and mortgage applications the only ones due. The Treasury will sell $24bn in 10-year notes though. In terms of earnings, BNP Paribas and Telefonica are some of the interesting names reporting. As for the US election, there will be a sigh of relief that uncertainty is out of the way and that the Fed are unlikely to have their wings clipped. However how long will it be before the market starts to price in the fiscal cliff scenarios?


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 11/07/2012 - 07:48 | 2955175 HobbyFarmer
HobbyFarmer's picture

"The morning after."  It all seems like such a bad one night stand.....get it out!


Wed, 11/07/2012 - 07:55 | 2955188 GetZeeGold
GetZeeGold's picture



Russia said they would take us over without a shot.....and screw me if they just didn't do exactly that.


We've just transmitted the good news to Vladimir.

Wed, 11/07/2012 - 08:01 | 2955212 Precious
Precious's picture

Look at it this way. Obama doesn't have to kiss the asses of his manic liberal constitutents anymore. He's probably as sick of their big indignant mouths as anybody. 

Wed, 11/07/2012 - 08:12 | 2955235 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

I've just got back from an all night party of fundraisers - only to come home and see a mountain of negativity on this blog. WHY OH WHY! Yes I voted for Obama. Yes if I couldn't have voted for Obama I would've voted Rommney.

I recently saw the new James Bond film - without giving out any spoilers it illustrates very well how those in the intelligence fields need the ability to act and to act right now, without bureaucrats and laws and discussions of liberties get in the way (the villans don't hang around for that nonsense). So thank God we have a president that supported the NDAA - a common sense law giving those in the intelligence community the powers they need to protect us.

I'm also proud that America elected the candidate most wanted by the rest of the world. This finally lays waste to our image from the Bush days as a grave threat to the rest of the world. Hopefully we can move forward with our allies (while also taking a harsh stance on Iran - and intervening where necessary) to build a liberal progressive system world wide.

Wed, 11/07/2012 - 08:17 | 2955251 GetZeeGold
GetZeeGold's picture



Bad news amigo......the useful idiots always die first.

Wed, 11/07/2012 - 08:25 | 2955275 markmotive
markmotive's picture


Really, how different were Obama and Romney? I vote for Big Bird. Now THAT's change.

Bill O'Reilly: "The White Establishment Is Now The Minority"

Wed, 11/07/2012 - 08:28 | 2955281 GetZeeGold
GetZeeGold's picture



I voted for Minnie Mouse......cause Mickey is just so full of himself.


Wed, 11/07/2012 - 08:35 | 2955307 negative rates
negative rates's picture

Hey lets go over to your house, and sometimes we can go over to my house.

Wed, 11/07/2012 - 11:15 | 2955977 Flakmeister
Flakmeister's picture


But she's fuckin'  Goofy....

Wed, 11/07/2012 - 15:37 | 2957561 negative rates
negative rates's picture

Well that's too fukin bad ain't it?

Wed, 11/07/2012 - 10:59 | 2955886 Mad Mohel
Mad Mohel's picture

Bill O'Reilly: "The White Establishment Is Now The Minority"

LOL, afraid of picking cotton eh? He shouldn't worry I think he'll be long gone by that point.

Wed, 11/07/2012 - 08:47 | 2955345 ACP
ACP's picture

A more appropriate question would be "where do you live"?

Wed, 11/07/2012 - 08:29 | 2955285 LongSoupLine
LongSoupLine's picture

Max, you're like a bad MDB reproduction. It's a fucking train wreck trying to read your stupidity. At least MDB's satire is entertaining.

Wed, 11/07/2012 - 08:45 | 2955339 Hobbleknee
Hobbleknee's picture

Why do you support war mongering and murder?


Wed, 11/07/2012 - 08:57 | 2955368 TeamDepends
TeamDepends's picture

NDAA "common sense" and completely unconstitutional.  Those who don't know the Constitution will be taught by those that do.

Wed, 11/07/2012 - 09:14 | 2955445 WhiteNight123129
WhiteNight123129's picture

You are a bad copy of MDB

Wed, 11/07/2012 - 09:19 | 2955465 Random
Random's picture

Nice trolling, reminds me of the milliondollarbonus' better moments. Well done!

Wed, 11/07/2012 - 08:22 | 2955259 Zero Govt
Zero Govt's picture

Yes Precious, Bumma can now go forth rape and loot (tax) the liberal middle classes for every penny they're worth's the socialist way to bring prosperity to all (well the Politburo to be more specific, people go hang)

Wed, 11/07/2012 - 08:37 | 2955286 GetZeeGold
GetZeeGold's picture



If Newsweek was still in print....they'd probably proclaim we're all communists now.


Bam Bam has been berry berry good for Newsweek.

Wed, 11/07/2012 - 09:19 | 2955466 irishlink
irishlink's picture

the people who financed Obama's campaign only gave up a few dollars that his generous wellfare policies gave them in the first place ie an 'investenent ' in their future . Brialliant strategy.

Wed, 11/07/2012 - 08:21 | 2955263 fonzannoon
fonzannoon's picture

I can handle the Obama win. We all know it did not make a difference. But if this is the path then lets get the party started. I'm losing patience already. No more afternoon "ramps" and metal "knockdowns". Shit WTF is oil doing down this morning? All these facebook sheep that are hung over this morning got what they wanted. Now they need to understand what they really got.

Wed, 11/07/2012 - 08:28 | 2955279 UGrev
UGrev's picture

If it zips.. they're firing past you. If it snaps.. they're firing at you. 

Wed, 11/07/2012 - 10:35 | 2955787 exi1ed0ne
exi1ed0ne's picture

And if it goes whoop whoop whoop, thats artillery over your head.

Wed, 11/07/2012 - 11:38 | 2956108 UGrev
UGrev's picture

Roger that.. dodging that.. 

Wed, 11/07/2012 - 08:54 | 2955374 KidHorn
KidHorn's picture

I agree. Oil is probably down because Obama is less likely to invade Iran than Romney.

It doesn't matter who won the election. Regardless of what either candidate has said, they both would maintain the staus quo.

Wed, 11/07/2012 - 09:08 | 2955425 DeadFred
DeadFred's picture

The new moon is next Monday and Israel now has the green light. How long will they wait? When will the Greeks default? Maybe soon. You're going to have to wait a few more days at least. Patience Grasshopper.

Wed, 11/07/2012 - 09:08 | 2955426 DeadFred
DeadFred's picture

The new moon is next Monday and Israel now has the green light. How long will they wait? When will the Greeks default? Maybe soon. You're going to have to wait a few more days at least. Patience Grasshopper.

Wed, 11/07/2012 - 12:17 | 2956367 Theosebes Goodfellow
Theosebes Goodfellow's picture

There's a glitch in the Matrix, DF.

Wed, 11/07/2012 - 08:31 | 2955296 bobnoxy
bobnoxy's picture

Hey, nothing to worry about. It's only another four years. By then, you dumb shit right wingers will have gnashed your teeth to the gum line and will be on your way to that fatal stroke that will forever put you out of your misery.

Then you'll be enjoying the wonder of socialized medicine, signing up for Medicare and whatever other government assistance there is.

The best part for liberals like me is watching you all whining, bitching and moaning for another four, long years! HA!! Maybe running on a platform of rape being not such a bad thing wasn't a winner after all?

Oh, this is going to be much fun. Morning in America!!!

Wed, 11/07/2012 - 08:42 | 2955327 fonzannoon
fonzannoon's picture

The death of the dollar is the one thing both parties have come together and agreed upon. At least Obama does not try to deny it. So let's get it moving.

Wed, 11/07/2012 - 12:40 | 2956545 Theosebes Goodfellow
Theosebes Goodfellow's picture

Just another lemming, are we Bobnoxious? You just don't get it, or maybe you're new around here and haven't quite gotten around to doing your homework of actually reading the material posted here. So let me try to help you and the other newbies out.

1.) You're wrong about it being "another four years". We've just elected the last American president of the second American republic. The first American republic ended in 1788 when we passed the Constitution.

2.) We "dumb shit right wingers" are doing all we can to prepare for the day when out-of-control spending drives this once-great nation over the fiscal cliff. That day is at best two years away, maybe sooner. You will know we are there when the US dollar will be good for nothing but wiping your butt, (and there are much better designed paper products for that function).

3.) There is a very high probability that this president will be impeached, if not for Fast & Furious, then for Benghazi. If the Senate refuses to convict him then we will have a civil war. If the Senate does convict him, then we will have a civil war. Either way, Biden will never make president.

We now have a front row seat to the largest decimation of wealth the world has ever seen. There is nothing that can stop it now short of radical, massive and brutal reductions in the size of government spending, and maybe not even the intervention of ALL the world governments. The piper must be paid. When that much wealth disappears, those on the losing side of the equation will be ready to kill whomever they perceive as being at fault. The unprepared will starve to death. It's as simple, (if gruesome and horrible), as all that. So are you still of the mindset that says, "Hey, nothing to worry about!"?

Wed, 11/07/2012 - 12:36 | 2956510 Raymond Reason
Raymond Reason's picture

Getseegold....Legion was cast out of Russian, flew west and descended upon a herd of USDA swine.  They hate Vladimir, and only transmit threats of revenge. 

Wed, 11/07/2012 - 07:51 | 2955189 ihedgemyhedges
ihedgemyhedges's picture

My Chinese friend called me this morning and said "I'm just grad the erection is over."  I told him "I've been married 18 years.  I can tell you the erection was over about 10 years ago......"

Wed, 11/07/2012 - 07:52 | 2955193 old naughty
old naughty's picture

In other words, not savouring the night before.

Wed, 11/07/2012 - 08:53 | 2955361 Dr Benway
Wed, 11/07/2012 - 08:47 | 2955344 Bazinga
Bazinga's picture

Which morning after pill are folks choosing? The red or the blue...

Wed, 11/07/2012 - 10:37 | 2955795 exi1ed0ne
exi1ed0ne's picture

They are both filled with roofies, so it doesn't matter.

Wed, 11/07/2012 - 10:03 | 2955636 augustusgloop
augustusgloop's picture

but at least with obama you'll be able to send her to planned parent hood in a month rather than have take her on as a sister-wife. 


in the Service, one must a always choose the lesser of two weevils. 

Wed, 11/07/2012 - 07:52 | 2955176 HD
HD's picture

While not much of a team red/blue partisan, (I think it's like deciding if you'd be better off having a massive stroke or advanced cancer) I wonder if the GOP will take a moment and think about what just happened:

Obama didn't just win - he crushed Romney

Elizabeth Warren took out Scott Brown

Colorado legalized Mary Jane

Tammy Baldwin is the first openly gay senator

Jessee Jackson Jr. won in a landslide despite being completely MIA and under investigation

The outspoken Allen West lost

Yet the GOP went out of it's way to ostracize Ron Paul, (who dominated the youth vote and appealed to many on team blue) that supports legalized marijuana, withdraw from Afghanistan and would put the Fed on a leash.

Something to think about team Red.

Wed, 11/07/2012 - 07:53 | 2955195 UGrev
UGrev's picture

Fuck Team Red. You know what? Fuck them more than team Blue. Fuck them ALL for being a bunch of scared, little, pussies. "OMG if you don't vote for Romney..Obama is gonna win.. and we're all gonna diiiiieeee!!!".  To ALL on team Red. You ARE the problem. You voted for the game. Just remember.. I voted Ron Paul. I voted to make sure the chains came off. THANK YOU, for voting to keep them on not only yourselves, but me as well. THANK YOU.. as in FUCK YOU WITH A RUSTY WIRE BRUSH!!!

Wed, 11/07/2012 - 08:01 | 2955209 GetZeeGold
GetZeeGold's picture



OMG if you don't vote for Romney..Obama is gonna win


Just happened amigo.....thanks a lot for that. If you could clean up the potty mouth a tad I'm sure we'd all appreciate that.


Wed, 11/07/2012 - 08:24 | 2955273 UGrev
UGrev's picture

Free speech, mother fucker. I voted for it. You voted for chains. THANKS FOR THAT. If you could grow a pair of balls instead of being a scared little person, we'd all appreciate it.

Wed, 11/07/2012 - 08:31 | 2955295 GetZeeGold
GetZeeGold's picture



Who told you who I voted for? That's suppose to be secret!

Wed, 11/07/2012 - 08:48 | 2955347 negative rates
negative rates's picture

The linear group goes crazy with the loss of it's chains. You just got twained mother fucker.

Wed, 11/07/2012 - 11:30 | 2956063 Harbanger
Harbanger's picture

You say you voted for "free speech" and he voted for "chains", but we all lost, the statists won... this round.  The fundamental transformation is well underway and the fun begins, they will inevitably crush our economy and our liberties in short order.

Wed, 11/07/2012 - 11:39 | 2956120 UGrev
UGrev's picture

I cannot contest that. However, I can say that the fault lay squarely with the republicans for being such fools. 

Wed, 11/07/2012 - 07:53 | 2955197 drchris
drchris's picture

Warren is the only problem I have with that list.  She invented the "you didn't build that" and she doesn't claim it's out of context.  

Wed, 11/07/2012 - 08:10 | 2955230 drchris
drchris's picture

For the down voters:


Of course, if reason behind the success of businesses was roads/police/public education, then why do any fail?  Those are the common factors.

Wed, 11/07/2012 - 08:52 | 2955264 GetZeeGold
GetZeeGold's picture



Having a nice conversation with yourself I see.....could you speed it up a tad? We've got stuff to do today.

Wed, 11/07/2012 - 09:45 | 2955568 drchris
drchris's picture

Please feel free to ignore me.  

Wed, 11/07/2012 - 11:17 | 2955987 Flakmeister
Flakmeister's picture

Been there, done that...

Wed, 11/07/2012 - 07:49 | 2955177 UGrev
UGrev's picture

Congratulations America.. you really love your fucking slave-chains.

Wed, 11/07/2012 - 07:54 | 2955200 nmewn
nmewn's picture

It could have been worse, Roseanne Barr could have won ;-)

Wed, 11/07/2012 - 10:12 | 2955685 TBT or not TBT
TBT or not TBT's picture

The guy who won will pick supreme court replacements who are just barely able to pass the dem controlled Senate, and these will moot our constitution once and for all.   Tyranny and misery are on the march.

Wed, 11/07/2012 - 07:52 | 2955178 ihedgemyhedges
ihedgemyhedges's picture


Wed, 11/07/2012 - 07:50 | 2955180 Silverhog
Silverhog's picture

Funny I had a bad nightmare that Obummer won oh....

Wed, 11/07/2012 - 07:55 | 2955186 Zero Govt
Zero Govt's picture

Marxo-Fascism here we come

shame coz if the other candidate had won we could have had Fasco-Marxism

...that would have made all the difference


Wed, 11/07/2012 - 08:51 | 2955358 UGrev
UGrev's picture

 The devil you know... 

Wed, 11/07/2012 - 08:53 | 2955360 negative rates
negative rates's picture

Let me put on my frown face.  :>(     or perhaps my prof mask.  (8?> . No I feel good just the way I am.

Wed, 11/07/2012 - 10:28 | 2955756 TBT or not TBT
TBT or not TBT's picture

You mean internationalist socialism vs nationalist socialism, two forms of totalitarianism with just a little different spin in the sales pitch?

Well after the sales pitch they always revert to nationalism to attempt to motivate the masses and maintain power.    Obama's policies have created a crisis which can only grow and get worse, and as his fellow traveller chicago corruptocrat and former chief of staff famously put it, one should not let a crisis go to waste.    He used the domestic crisis he deepened during the last four years to divide Americans into a bunch of different grasping interest groups, and ran hard on that.  The "War" on Women ring a bell?  High unemployment among designated victim group minorities?   Rising under-employment and lack of investment due to the regulatory cliff that's coming?   Due to the fiscal cliff?  The various implementation phases of obamacare?  

The sovereign debt crisis?   Iran's nukes?  Pursuing al quaida into Mali and beyond.    Trade and currency wars?   He'll cook up external crises (nationalism stoking) at a later phase of his "fundamentally transform the USA" program already well underway, to seat his transformations fully.   He was already at this effort as a young lawyer working for ACORN and with Janet Reno to put teeth into Carter-era CRA, which work helped bring about the real estate bubble, together with the stupid politically operated scams called Freddie and Fannie.   The Fed just printed the money.    The CRA plus Fannie Freddie directed that money into the real estate bubble rather than some other.    His community organizing mostly came to nothing, but he did pick up his fake black accent and identity, to the degree he has obtained it, by working on that, and sitting through 20 years of black liberation theology at Jeremiah Wright's church.    How low we have fallen!

Wed, 11/07/2012 - 07:56 | 2955202 Confundido
Confundido's picture

Nice. I was afraid that if Romney won, leftists would have argued they weren't given enough time to turn things around. Now, the evidence of the collapse will be printed all over their faces.

On the other hand, after these fucking neocons stole Ron Paul the primary, I was afraid they would take us not only to hyerinflation, but to WWIII. 

The libertarian movement bought 4 more years to prove its merit.

Wed, 11/07/2012 - 07:59 | 2955207 old naughty
old naughty's picture

Or, extend and pretend,

the demise.

Wed, 11/07/2012 - 08:05 | 2955217 drchris
drchris's picture

I think the worst case scenario would have been a Romney win and a recession in 2-3 years.  The media would fall over itself blaming all forms of fiscal conservatism.  

Wed, 11/07/2012 - 09:08 | 2955430 Bobbyrib
Bobbyrib's picture

We all know fiscal conservatism (the bad tasting medicine) is what the country needs, but neither one of these candidates are or would have cut spending.

Wed, 11/07/2012 - 11:19 | 2955994 Flakmeister
Flakmeister's picture

Fiscal conservatism....

Bhwa, haw, haw haw....

Now that was truly rich....

Wed, 11/07/2012 - 09:38 | 2955534 Acet
Acet's picture

I'm afraid that compared with the rest of the world, both main parties in the US are right-wing.


Wed, 11/07/2012 - 11:11 | 2955950 BudFox2012
BudFox2012's picture

As much as I like Dr. Paul, I think things might have been to far gone for even him to fix.  Yes, we will collapse.  No, it will not be pretty. 

Wed, 11/07/2012 - 07:59 | 2955205 Vooter
Vooter's picture

In the words of the great FZ: "What's for breakfast?"

Wed, 11/07/2012 - 08:00 | 2955208 falak pema
falak pema's picture

the new eldorado for the world corporate oligarchy : Africa.

10 nations stand out where the young population profile should contribute to the next consumer boom of the coming decades : 

L'Afrique, eldorado des consommateurs selon une étude

Mckinsey report.


Wed, 11/07/2012 - 08:02 | 2955213 Eclipse89
Eclipse89's picture

were US structurals to come to the fore and take a turn for the worse, the USD and US bond markets would be in good position for a huge rampapalooza

Fixed it for you, SocGen.

Wed, 11/07/2012 - 08:02 | 2955214 Cloud9.5
Cloud9.5's picture

We Republicans deserve this defeat.  The cannibalization of the Tea Party and the ostracism of Ron Paul are coming home to roost.  The machine won and the party lost.   It is very difficult to be the party of Middle America when you take your marching orders from Wall Street.

Wed, 11/07/2012 - 08:06 | 2955222 GetZeeGold
GetZeeGold's picture



So....are you now offically declaring victory?

Wed, 11/07/2012 - 08:37 | 2955311 Zero Govt
Zero Govt's picture

nope he's detailing the well-worn path of all Govt, because it is all the same system (monopoly of power by parasites living off the backs of society) be it window dressed as 'democratic Govt, socialist, fascist or communist or in olden days, the Church and Royalty

as happens everywhere the pretence of representing the people in Parties quickly fades to power bein hoarded to the central core, the executive. Membership of Parties decline as people realise they have no influence over 'their' party, that the power is being hoarded in the hands of a few ingrained greedy chiefs

Ron Paul is an idealist and is getting what he deserves (being left at the station like a turkey) for believing in freedom and free markets without ever understanding why they work while advocating "small govt". 

Govt is a monopoly of power. Freedom is the exact opposite, freedom to compete. Never the two shall mix. Calling for little bit of monopoly (small govt) is as stupid as calling for Big Govt, both are the enemy of freedom and free markets (free of rules and monopoly)

Ron Paul is now where all idealists are who do not understand the fine principles they spout, a stuffed turkey waiting Christmas

he needs to revoke Govt (monopolising authority in society).. he cannot and will never get a free market while he advocates Govt. Wakey wakey, enlightenment maybe dawning on you shortly

Free Markets need Zero Govt 


Wed, 11/07/2012 - 08:45 | 2955338 GetZeeGold
GetZeeGold's picture



Free Markets need Zero Govt


Don't see that happening anytime soon. So wins the next big bailout?

Wed, 11/07/2012 - 09:05 | 2955392 Zero Govt
Zero Govt's picture

Ron Paul has alot of support, and i believe probably key support amoung the small business community who of course pay 70% of the taxes in the US and employ 70% of the people in the private (productive) sector but have 0.00% influence in Monopoly Central HQ, Washington

I sincerely hope he wises-up why his campaign will never succeed in a million years of trying, renounces Govt (a veracious monopolist parasite cancer killing America) and his job as a politician (parasite) and brings his support and supporters behind the most effective way to change this ever more stinking shitshow shambles

Stop Paying Tax

zero Tax = zero Govt = Freedom and free markets

does he want an economic recovery (from Govt monopolism/vandalism) and an end to murderous thug wars or not?

Wed, 11/07/2012 - 09:06 | 2955417 GetZeeGold
GetZeeGold's picture



Ron Paul has alot of support


Well....make sure you vote for him today then.....wait till later because it's going to be standing room only at the polls this morning.

Wed, 11/07/2012 - 09:20 | 2955448 Zero Govt
Zero Govt's picture

I'm Eurozone

I voted every year for the past 3 years, not paying any tax (the only vote you need to cast, it's the only policy you need to endorse, simple)

if everyone can hurry up and cast their vote this way recovery (from the Govt extortion racket) will come faster and healthier ...we have simply no comprehension of how badly we/society has been robbed over the past decades by the parasites of Govt and banking..the recovery from this sewer system will be astounding

Wed, 11/07/2012 - 08:45 | 2955336 machineh
machineh's picture


'It is very difficult to be the party of Middle America when you take your marching orders from Wall Street ...' and the Israel Lobby.

 Next time Milt, or Milf, or whatever his name was, might want to put his own country's interests first, instead of fawning over a rich little brat of a country that sucks $3 billion a year from our budget, and gives us only grief in return.

ROFLney -- good riddance to bad rubbish!

Wed, 11/07/2012 - 08:06 | 2955215 Mercury
Mercury's picture

OK ONION, here ya go...







Wed, 11/07/2012 - 08:43 | 2955330 duo
duo's picture

General Electric dissolves into 2800 49-person companies to avoid the Obamacare mandate.

Wed, 11/07/2012 - 08:55 | 2955378 UGrev
UGrev's picture


Wed, 11/07/2012 - 08:05 | 2955216 Plumplechook
Plumplechook's picture

Biggest winner of the night was Nate Silver.  The GOPs attack's on him over the last few weeks were totally unhinged.  Bad enough shooting the messenger - but this was like launching a war on maths.

Wed, 11/07/2012 - 08:16 | 2955247 Gazooks
Gazooks's picture

Yeah, Nate nailed it. (gold got it too;)


Biggest loser was Dick the Little Prick Morris.


Would some benevolent force of nature put that whinning piece of shit out of our misery?

Wed, 11/07/2012 - 08:54 | 2955370 machineh
machineh's picture

... and his former clients the Clintons, who have been hectoring us from their perches in public office for twenty freaking years now.

Wed, 11/07/2012 - 09:01 | 2955407 Bicycle Repairman
Bicycle Repairman's picture

Nate Silver had Obama winning, comfortably, since Labor Day.  It was never close.  Nate insisted on using facts and mathematics in making his projection.

No suprise that both the Republicans and the MSM derided Nate.  A horse race was more profitable for the MSM, so they weren't going to offer a scientific estimate.

I'm disappointed that no scientific estimate was featured on ZH.  I like the fact that ZH usually 'keeps it real'.

Wed, 11/07/2012 - 11:23 | 2956015 Flakmeister
Flakmeister's picture

The Repubs have demonstrated that they have serious issues with rational thought and analysis...

This will only bite them in the ass taking bigger and bigger chunks as time marches forward...

Hell, scientists used to be registered 50/50, now it is 10/90...


Wed, 11/07/2012 - 08:05 | 2955218 The Navigator
The Navigator's picture

Proof positive that the Takers now outnumber the Makers - free phones, free healthcare, free (fill in the blankS) for whatever you want, just don't add a dom to that.


Wed, 11/07/2012 - 08:05 | 2955219 Cow
Cow's picture

the House is controlled by the GOP.  Dems control the Senate.  the Congress is split

Wed, 11/07/2012 - 08:07 | 2955224 GetZeeGold
GetZeeGold's picture



Dude....that's what czars are for.


Wed, 11/07/2012 - 08:05 | 2955220 youngman
youngman's picture

I am afraid the Republicans will never be able to win again .... this election was a choice of Socalism or Consertative values....the 47% will now become 55%....debt will be 25 trillion..we will have France taxes and fees...and labor laws..many people will have gone Galt...and the Republicans will go soft like they did in the 60´s..when they had no power at at all..the only thing that will save the Republicans is a major terrorist atttack...where millions are killed..and then ond onlly then mabye some democrats might see the light...but I doubt it...

Wed, 11/07/2012 - 08:09 | 2955227 GetZeeGold
GetZeeGold's picture



I knew when Romney said 47% he was totally sandbagging it.

Wed, 11/07/2012 - 08:19 | 2955258 GCT
GCT's picture

Mitt was never a conservative.  Go check his record!  The Repubs got what they deserved.  They tried to submit a white Obama and got slammed for doing so.  The republican party lost its conservative tag the day the repub leadership blew off Ron Paul.  Cooter has many valid posts in another thread and they are spot on.

Wed, 11/07/2012 - 08:24 | 2955269 GetZeeGold
GetZeeGold's picture



We all knew that...but we also figured he wasn't a full tilt communist either.

Wed, 11/07/2012 - 09:06 | 2955419 Bicycle Repairman
Bicycle Repairman's picture

Both are full tilt corporatists.  And your choices were a White Obama or a Black Romney.

Wed, 11/07/2012 - 09:16 | 2955455 Bobbyrib
Bobbyrib's picture

"Mitt was never a conservative.  Go check his record!  The Repubs got what they deserved.  They tried to submit a white Obama and got slammed for doing so."

Exactly. The alternative to Obama was Obama.

Wed, 11/07/2012 - 08:16 | 2955250 Orly
Orly's picture

When you give people with nothing the right to vote themselves free stuff, it just grows and grows and grows, until you become Greece.

Think about it.

Wed, 11/07/2012 - 08:45 | 2955337 duo
duo's picture

yes, but you will only have to work 35 hours a week and get all of August off to sit on the beach and smoke stinky cigarettes in a Speedo.

Wed, 11/07/2012 - 09:17 | 2955462 Bobbyrib
Bobbyrib's picture

There is going to be an emerging Speedo black market.

Wed, 11/07/2012 - 08:07 | 2955223 the not so migh...
the not so mighty maximiza's picture

Rommney did not have it in him.  He lost his home state and Ryans Wisconsin.  Hows that not counting republican votes in the primaries working out for yeah????? 

Wed, 11/07/2012 - 08:09 | 2955228 Drunken Monkey
Drunken Monkey's picture

"Yes We Can!" BTFD. Follow the yellow brick road to the Fiscal Cliff

Wed, 11/07/2012 - 08:11 | 2955229 TWSceptic
TWSceptic's picture

Bullish for gold & silver, that's all I care about at this point. The US (and rest of the world) was going to be screwed either way.

Wed, 11/07/2012 - 08:10 | 2955231 LongSoupLine
LongSoupLine's picture

i want a fucking Ron Paul recount damn it!!

Wed, 11/07/2012 - 08:12 | 2955237 GetZeeGold
GetZeeGold's picture



Heh heh......wait for the absentee ballots.....that's all were asking for here.

Wed, 11/07/2012 - 08:11 | 2955232 Uncle Remus
Uncle Remus's picture

Why does it hurt when I pee?

Wed, 11/07/2012 - 08:19 | 2955257 GetZeeGold
GetZeeGold's picture



The doctor will see you in 10 years.....but by that time it probably won't matter any longer.

Wed, 11/07/2012 - 08:20 | 2955262 Gazooks
Gazooks's picture

Just wait till you try to dump.

Wed, 11/07/2012 - 08:23 | 2955271 The Navigator
The Navigator's picture

No shit.

Wed, 11/07/2012 - 08:59 | 2955397 negative rates
negative rates's picture

If it a hurtsa when you peea, you mighta havea  gonorrhea. 

Wed, 11/07/2012 - 09:07 | 2955420 Buck O Five
Buck O Five's picture

Got it from the toilet seat

Wed, 11/07/2012 - 09:07 | 2955423 hooligan2009
hooligan2009's picture

cos you dont have enough hysical

Wed, 11/07/2012 - 08:11 | 2955233 odatruf
odatruf's picture

I like my morning afters with a bit more foggyness and a bit less regret, thank you

Now, where did I park the car?

Wed, 11/07/2012 - 08:13 | 2955239 odatruf
odatruf's picture

And where did I get this cute rainbow tattoo?

Wed, 11/07/2012 - 08:12 | 2955236 rsnoble
rsnoble's picture

Let's see..........republicans want to win so they nominate a guy that's made gazillions shipping jobs to China, is surrounded by a bunch of religious/abortion kooks and I can't imagine what all the wholesome homemade bread for breakfast bible thumping god loving GOP types were thinking when they decided to nominate a guy that's mormon and believe his god lives on another fucking planet.  And then go and make such ridiuclous comments as the poor don't matter---when last time I checked poor are everywhere.

Yep, I just can't understand why they lost. LMAO.  What's even funnier is THEY don't understand why they lost that's the screwed up part.  They must really believe all that crap. Could you imagine having to live around a bunch of people like that it would be like some weird sci-fi movie where everyone except you is fucked up.

Wed, 11/07/2012 - 08:29 | 2955283 Gazooks
Gazooks's picture

Vote for a private capital raider, just don't wake up naked in a trailer park with your sister wearing a day-glo jesus on a Harley tat on her ass.

Wed, 11/07/2012 - 08:48 | 2955349 rsnoble
rsnoble's picture

My votes were all write in.  And no it wasn't the old grouch Paul.  No chance in hell of winning,  not even one mention of Mickey Mouse.

Wed, 11/07/2012 - 08:12 | 2955238 Kaiser Sousa
Kaiser Sousa's picture

this country is done......

bye, bye US debt coupon dollar....

hello serfdom.....

Wed, 11/07/2012 - 08:13 | 2955240 overmedicatedun...
overmedicatedundersexed's picture

if you think any reporting of the vote totals on computers with no hard paper trail is accurate I have some BLS reports for you..diebold won, scytyl reported and Soros got his pieces of silver..

this is the fact...for those many non USA citizens posting here..remember Irelands NO vote and how the EU just said vote again and they got the vote numbers strait the second time.

there cannot be an honest election with electronic voting and no way to verify ..the perfect way to manufacture the outcomes..

American you been punked.

Wed, 11/07/2012 - 08:15 | 2955245 rsnoble
rsnoble's picture

Last time I checked they were able to screw over paper elections also.  Digital just streamlines it.

Wed, 11/07/2012 - 08:16 | 2955249 overmedicatedun...
overmedicatedundersexed's picture

when it becomes as obvious as this the vote was Punked what do you do about it..oh I know vote harder next time - lotta guns but no guts over here.

Wed, 11/07/2012 - 08:30 | 2955293 Ghordius
Ghordius's picture

Remember Ireland: no, you are not remembering it correctly, you are remembering what some media fabricated. Have a look how many pro-european referenda the Irish People had since then on more specific items. Have a closer look. Tell us something about those.

Sorry, you might not be happy with how transparent your elections are but here in europe it's a serious business. Get down to the details and you'll see.

Wed, 11/07/2012 - 08:33 | 2955301 GetZeeGold
GetZeeGold's picture



Hey Gordo......the only thing worse than the Nov 7th morning in Europe.

Wed, 11/07/2012 - 08:50 | 2955353 Ghordius
Ghordius's picture

GetZeePhys, have you any idea how annoying it is for some europeans to hear all those fabricated lies? Including all the "the markets can't blablabla... because Europe has not been "fixed"?

Let's start with the fact that this crisis has it's origin in the US, particularly in the aftermath of 9/11 and the securitization of this program of "every American his home" that every prez liked, Fannie Mae, Freddy Mac and all the other gov entities, the US MegaBanks, AIG, and so on. Couple it with the FED's doings since the Nixon Shock with it's unbacked fiat global reserve currency regime.

Add in the chorus against austerity in the eurozone "killing growth". And put a sprinkle of populist (albeit libertarian and so beyond criticism in ZH) City of London Fellow and friend of the Banks Nigel Farage.

What a cocktail. Keep that "the only thing worse ... is Europe" close to your bosom. It's fine. But don't touch referenda. They are way more important than elections, IMHO.

Wed, 11/07/2012 - 09:02 | 2955391 GetZeeGold
GetZeeGold's picture



have you any idea how annoying it is for some europeans to hear all those fabricated lies?


Dude, my ancestors took a boat ride and fought a war to get away from you guys. What makes you think we would care about you? spell checker informs me you misspelled "europeans". Get it together amigo.


Wed, 11/07/2012 - 09:45 | 2955567 Zwelgje
Zwelgje's picture

Dude, your ancestors took a boat ride because they were promised 'free' land.

Wed, 11/07/2012 - 10:59 | 2955887 GetZeeGold
GetZeeGold's picture



It really was....don't tell your grandpa. It will just make him mad at his grandpa.

Wed, 11/07/2012 - 08:48 | 2955346 overmedicatedun...
overmedicatedundersexed's picture

Ireland voted it did not meet the goal and wheee a new vote..Ghordius you have written some good posts but I am sorry to say the idea of vote fraud is so plain proved so many times in country after country that I must say denial is not a river in egypt. we live a in tyrany run by elite reptiles who care not for your ideas or mine.

Wed, 11/07/2012 - 09:01 | 2955408 Ghordius
Ghordius's picture

Then explain to me the result of the Irish Referendum on the Thirtieth Amendment of the Constitution of the Republic of Ireland regarding the European Fiscal Compact.


Sorry, this meme of "Ireland being bossed by the EU" is dear to Rupert Murdoch, I understand that I can't compete with The Old Man with his hate for all EU-related things. Nevertheless it's simply not true.

If you look closely, several parties and several personalities in Ireland changed their mind between the first and the second referendum on the Treaty of Lisbon, also called Lisbon I (2008 - 53% against) and Lisbon II (2009 - 67% in favour). They had a long political discussion about it.

Changing your mind is a sovereign prerogative. And there was that little thing about the crisis that had an impact on the Irish Popular Will.

Wed, 11/07/2012 - 09:08 | 2955427 GetZeeGold
GetZeeGold's picture



Then explain to me the result of the Irish Referendum on the Thirtieth Amendment of the Constitution of the Republic of Ireland regarding the European Fiscal Compact.


It's just some bullshit someone thought up.

Wed, 11/07/2012 - 08:13 | 2955241 rsnoble
rsnoble's picture

Gee, Ryan lost his home town? What a prick he must be lmao.

Wed, 11/07/2012 - 08:17 | 2955253 the not so migh...
the not so mighty maximiza's picture

The party elders that selected these guys did not want to win.

Wed, 11/07/2012 - 08:16 | 2955242 j-dub
j-dub's picture

I'm just very thankful I have no children....................................................................................oooooh, you guys with kids think I'm being funny?


Wed, 11/07/2012 - 08:47 | 2955303 GetZeeGold
GetZeeGold's picture



Screw their kids.....I'm gonna go out and get mine.


I no longer work for anyone.


Wed, 11/07/2012 - 09:34 | 2955512 Random
Random's picture

"I no longer work for anyone."

Really now? Do you pay taxes, "own" something, buy something (let's say gas), watch TV, listen to music? If the answer for any of these questions is yes, breaks my heart to tell you that you do work for someone else. Let that sink in a can breathe now...

Wed, 11/07/2012 - 11:01 | 2955889 hapless
hapless's picture

There's "using" and there's "not being able to do without". A significant part of preparation is knowing the difference.

Wed, 11/07/2012 - 08:14 | 2955243 Peter Pan
Peter Pan's picture

The reality is that neither Obama nor Romney have the wherewithal to address even one of America's staggering problems.

Make a note everyone, because the next time round let's see which of the followoing problems of deficits, federal debt, unemployment, the Middle East, housing etc will have come even close to being brought under control.

If Obama can pull it off, which I doubt he can, I will add his face to Mount Rushmore.

Wed, 11/07/2012 - 09:09 | 2955248 hooligan2009
hooligan2009's picture


did you notice that at the post election parties the democrat people were non-white, fat, female or old yet the republican people were almost all white and middle aged? the 47% won and they all need welfare! the usa was a republic, now it is a mobocracy that spends other peoples money. the taxes on women, pensions, the obese and the non-whites are coming

sing this to "send in the clowns" and remember the last words of that song..."don't worry they're here"


Give me your tired, your poor,

Your huddled masses yearning to breathe free,

The wretched refuse of your teeming shore.

Send these, the homeless, tempest-tost to me,

I lift my lamp beside the golden door!"


Wed, 11/07/2012 - 09:14 | 2955443 Bicycle Repairman
Bicycle Repairman's picture

There was 8 years of 'W'.  How'd he do on those issues?  Rhetorical question.  I've got the answer.  He buried the republic and the Republican party.  And Romney would have been no different.

Wed, 11/07/2012 - 09:23 | 2955477 hooligan2009
hooligan2009's picture

what's your point? mine has (always) been to raise taxes by a third and cut spending by a third...or..cut spending in half.

we need a fiscal responsibility act that caps deficits and simultaneously cuts debt to 40% of GDP.

i agree that republicans are no better, neither party wants to run surpluses of 6 trillion over the next, say, ten years (improve the fiscal position by 2 trillion a year starting now). 

even leaping the fiscal cliff does not put thngs on a sound footing.


Wed, 11/07/2012 - 09:37 | 2955530 Bicycle Repairman
Bicycle Repairman's picture

Your point is too narrow.  Here is my point (from a post below):

"Anyone remember inaguration day 2001?  For the first time in 50 years a Republican President and a Republican congress.  Finally things were going to move in the right direction.  LBJ's legacy was going to get an 'adjustment'. The budget was nearly balanced, which panicked Greenspan to no end.  We weren't at war.  "Humble foreign policy"  "No nation building"  And then?

Huge deficits.  Endless war.  Hispanic immigration for low wage jobs and H1-B visas for high wage jobs.  All inclusive security state.  The end of any semblance of capitalism.

Today is 12 years after the "morning after".  It was over quite some time ago.  Don't cry about Romney losing.  It doesn't matter."

Wed, 11/07/2012 - 10:18 | 2955711 hooligan2009
hooligan2009's picture

yes i saw your previous post.

so the winning formula is, no war, no deficit and no nation building!!

why can't that be an electable platform?

(i upticked you by the way)

Wed, 11/07/2012 - 10:24 | 2955739 Bicycle Repairman
Bicycle Repairman's picture

It is an electable position.  'W' got elected on that platform and promptly repudiated it.  In 2012 America you can't get nominated with that platform.

Wed, 11/07/2012 - 10:35 | 2955790 hooligan2009
hooligan2009's picture

uh huh, too many in the 47% who wont vote for a pay, umm benefit cut, wlecome to welfare mobocracy

Wed, 11/07/2012 - 12:57 | 2956692 Bicycle Repairman
Bicycle Repairman's picture

Too many in the 1% are uninterested in these positions.

Wed, 11/07/2012 - 10:23 | 2955728 negative rates
negative rates's picture

Sure it would have been different, Romney has absolutely no class.

Wed, 11/07/2012 - 08:17 | 2955252 jbvtme
jbvtme's picture

"no one ever went broke underestimating the intelligence of the american people".  h.l. menchen

Wed, 11/07/2012 - 08:18 | 2955254 Ralph Spoilsport
Ralph Spoilsport's picture

This should be the best day evah to listen to Beck, Limbaugh, Hannity and Levin as they come up with who to blame for this debacle. Haven't seen it yet but Karl Rove made an ass out of himself (again) on Faux News when Ohio was announced for Obummer.

Wed, 11/07/2012 - 08:18 | 2955256 blown income
blown income's picture


Wed, 11/07/2012 - 09:26 | 2955494 Bobbyrib
Bobbyrib's picture

Yep, just like we were on November 5th.

Wed, 11/07/2012 - 08:20 | 2955261 Bangin7GramRocks
Bangin7GramRocks's picture

Honest question for all of you constitution readin, god fearin, gay hatin, gun lovin republicans. What would Romney do to make the economy better? Do you really think he would fire Bernanke and install someone who wouldn't print? I just don't get it! We are all fucked eventually and you can't honestly believe the big business/wall street candidate would be better for 99.999% of the country.

Wed, 11/07/2012 - 08:23 | 2955268 overmedicatedun...
overmedicatedundersexed's picture

Bangin : "you can't honestly believe the big business/wall street candidate would be better for 99.999% of the country. "

ah cough cough corzine cough idiot big wall steet crime family had both sides covered.

Do NOT follow this link or you will be banned from the site!