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Blog Home : May 2012 : 2012-05-14 to 2012-05-20

Austerity, Social Mood, and the Presidential Election

Last year, House Speaker John Boehner made moves to push the United States into default on its obligations. This kicked off a stock decline that ended in October and brought the President's favorability rating to a low at the same time. See intrade chart here. Good dry run last year. Now time to do it again, talk about putting U.S. into default, drive down stocks, and drive down voter approval of the President. Clearly if you can drive down social mood by November, you have a good strategy to elect Romney.

Need a bounce this week or there is a possibility of repeating last year's stock decline into November and bringing in Romney to the White House. The irony is the austerity championed by Republicans is the trigger for this decline. Read Krugman's latest book, "End This Depression Now."

2012-05-07 to 2012-05-13 «  » 2012-07-02 to 2012-07-08