This article appeared online at TheNewAmerican.com on Thursday, November 8, 2018:
Stocks leapt upward on Wednesday as investors came to realize what the midterm elections meant: gridlock. As analysts from Bank of America Merrill Lynch noted before the election, “Gridlock (nothing done, nothing undone) might not be a bad outcome, and has historically been a good environment for stocks.”
Generally, the year following a gridlocked Congress has been good for stocks, averaging gains of 12 percent. Wednesday’s gain of two percent across all the major averages, and Thursday’s continuing rally, though modest, is a harbinger for a repeat into the next year.
Thanks to gridlock, the president’s second round of tax cuts is DOA. Infrastructure spending is fraught with danger for the Democrats. They’d like to spend the money, but they don’t want to help Trump’s reelection chances in 2020. They’d rather try to impeach him for various reasons — his firing of James Comey for political reasons or the 87 communications the Trump campaign had in 2016 with Russians (whether incriminating or not) or how he might have enriched himself or his family by doing business with foreign interests — but that won’t go anywhere as the president won’t sign anything unless those investigations are ended before they begin.
What the House Democrats are left with is “drug pricing” and “ethics reform.” Taking on Big Pharma and imposing ethics reform in the House looks to Gary North as just