Stocks Plummet in Reaction to Obama Win

As predicted here, the stock market plummeted on Wednesday in reaction to the Barack Obama win.

In fact, the drop of nearly 500 points is the largest post-election loss in U.S. history.

And thus, my point is confirmed. Barack Obama's tax proposals are not only bad for the markets, but they may well be enough to push the economy over the edge into either a severe recession or an outright depression.

When investors know that after the shift in power in January their taxes will be raised, particularly capital gains taxes as Obama has promised, we can rest assured that those investors will sell NOW rather than wait for the tax increases to take effect.

In fact, I will make a further prediction. The losses on Wall Street will continue unless Obama and the Democrats eliminate capital gains taxes altogether and immediately promise there will be no tax increases, period--not even allowing the Bush tax cuts to expire.

This will give confidence to those who invest in the markets and create the wealth and the jobs in America.

But if Obama and the Dems are intent on doing what they promised with regard to taxes, look for a deepening economic decline resulting in even greater pain and suffering for the average citizens.