Professor Elam

Monday January 18 2009

Bull markets are inclusive and reflect good feelings .Bear markets are exclusive and reflect increasingly negative feeling. 

We are witnessing those negative feelings over 

backroom deals for Nebraska and Louisiana as their Senators got favorable treatment to vote for Obamacare

backroom deals to exclude Cadillac union health care plans from various taxes

all being played out in what was the most unlikely state for it, Massachusetts, dubbed Taxachusetts but its detractors. Note, the Dems lost major races in New Jersey and Virginia already. 

Long shot State Senator Brown is now leading in the polls over the Dem State  Atty General Coakley who thought she was a shoe in for the race. 

Unless you have had your television or radio off the last two weeks, this will be a huge upset and cost the Dems their 60- vote majority in the Senate. And that will set the political tone for the year. And that tone will be the sort of bitterness only seen as we continue the massive up and downs for an 18 year long period of stagnation. The Dow stands where it was ten years ago, brace yourself for another eight years. 

Understanding socionomics, how popular culture determines what happens will help you weather this period of economic stagnation.