A few weeks ago I wrote that I expected a heated debate over whether the decision to let Lehman fail was the right call.
I thought that would be an economic debate. Now I think political scientists will debate whether that decision cost McCain the election.
Just look at the graph of the national polls on RealClearPolitics.com . Scroll down to the graph. It's interactive, so you can move your cursor along until the Obama and McCain lines cross. Got the date? September 17th.
Now when did Lehman fail?
September 15th.
Now take a look at this chart of the Dow. It is also interactive.
If you can stand the pain, move your cursor back to 9/15.
Compare the graph of the Dow and the graph of the polls and it is pretty clear the collapse of Lehman, the stock market collapse and the financial crisis changed the dynamic of this race.
Comments
The biggest mistake was starting the bailouts. And not allowing the market to correct themselves. I guess we should now pass the “No Bank Left behind”. Once the companies saw government covering loss why should they sell to private markets willing to buy their troubled assets. Wall St made money on the way up (hedge) and on the way down (shorts). Let us not forget the money their getting on the way out…bailouts!
Boy to I feel sorry for the people (including myself) and the next President.
The biggest mistake was starting the bailouts. And not allowing the market to correct themselves. I guess we should now pass the “No Bank Left behind”. Once the companies saw government covering loss why should they sell to private markets willing to buy their troubled assets. Wall St made money on the way up (hedge) and on the way down (shorts). Let us not forget the money their getting on the way out…bailouts!
Boy to I feel sorry for the people (including myself) and the next President.