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Obama Faces Falling Stocks, Lost Jobs, Foreclosed Homes

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By : Cassiano Travareli    99 or more times read
A day after Democratic candidate Barack Obama won the election, the stock market had a free fall, with the Dow Jones Industrial Index dropping by nearly 500 points, the Nasdaq losing 5.6% and with the S&P 500 losing 5.3 percent.

European stock markets also fell hard, with the British FTSE 100 falling by 2.3%, the German DAX index losing by 2.1% and the French main index falling by 2%.

Analysts say that at the start of trading, the stock markets fell because a lot of investors were cashing in, but later in the day, the reason the stock markets kept on falling was because traders began to have reservations about the impact of an Obama administration on the business sector.

The stocks also fell because investors were concerned about the business impact of the expected release of a government report on lost jobs, repo homes and foreclosed properties for the month of October.

As Congress is being occupied by more Democrats, Wall Street investors are turning their focus from election developments to how Democrat Obama and a Democratic Congress will handle issues that directly affect the business sector. Democrats have historically advocated for stronger supervision of the financial industry, for less business-friendly tax systems, for increases in entitlement allocation and for more policies that help labor, such as the prevention of foreclosures.

Investors are also monitoring how Obama is forming his team, specially the selection of his treasury secretary. Among the possible candidates for the position are New York Federal Reserve's president Tim Geither, former Secretary of the Treasury Lawrence Summers, former Chairman of the Federal Reserve System Paul Volcker and New jersey Governor Jon Corzine.

Small investors however, such as people who have purchased homes for investment, and home builders, are hopeful that Obama will choose people able to solve the problems of repossessed houses and foreclosed homes.
Cassiano Travareli has been educated in the finer points of the foreclosures market over 5 years.

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