Obama needlessly stirred the pot by warning today that "millions of jobs" could be lost next year and that "we now risk falling into a deflationary spiral." Furthermore, he warned that "it's likely to get worse before it gets better." Not exactly inspiring, nor likely to restore badly needed confidence.
His solution appears to be boilerplate New Dealism with a Green Twist: massive spending to rebuild infrastructure (roads, bridges, schools, etc.), develop alternative energy sources, and build more efficient cars. (The latter being essential now that gasoline is on its way to under $2 per gallon.)
Investors whose portfolios have been devastated can now look forward to digging ditches, paving highways, pouring concrete and painting classrooms.
Excuse my skepticism, but I guess I didn't realize that decaying infrastructure, inadequate classrooms, and not enough Honda Civics were the root cause of the current crisis.
I'm led to revisit my concerns of early October. The market's collapse began around the time (late September) that an Obama victory began to be very likely. If another New Deal is the best he can come up with, then I can understand why the market is down.
UPDATE: The good news would be that he didn't mention raising any taxes. So as I thought before, he will probably allow the Bush tax cuts to expire on schedule at the end of 2010. No new taxes, no higher taxes, for the next two years.