The results of yesterday's election was disappointing. Already today there is a plethora of analysis on why Romney lost and Obama won. (See here, for instance). While I thought Romney was too moderate, like many other conservatives, I would have crawled over broken glass (to borrow the metaphor from Glenn Reynolds) to vote for Romney over Obama, and think most other conservatives felt the same. I don't believe that the loss was due to a lack of enthusiasm on the part of conservatives or Republicans. And, although the MSM has worked hard to minimize and cover for Obama on various issues and scandals, the big issue--the economy--was there for all to see. So, what this election boiled down to is that a majority of Americans (albeit, a slim majority) simply liked what Obama stood for--big government and free handouts--more than what Romney represented. Basically, the majority of Americans have chosen bread and circuses.
What I wanted to focus on in this post is what the future portends. The stock market is a pretty good indicator of what the financial markets think: the Dow fell 270 points, and the Nasdaq also declined sharply, purportedly because:
The sense of business as usual cascaded to Congress as well, where Republicans held control of the House of Representatives and Democrats held the Senate. As a result of the remaining sharp divisions in the White House and on Capitol Hill, market participants almost immediately shifted their focus to the looming fiscal cliff. The fiscal cliff refers to the painful spending cuts and tax hikes that will automatically go into effect in January should politicians in Washington, D.C. not get the nation's fiscal situation under control.