What Will Be Impact of Democrat House and Senate on Economy and Housing?

[poorgradstudent]

You should have sold your Pfizer a while ago… their main cash cow patents expire soon and their pipeline isn’t exactly bursting with new potential blockbusters. Amgen and Novartis are much stronger plays in the industry right now (especially since Novartis is European, so it benefits if the dollar falls).

[equalizer]

Here are two articles from marketwatch.com

estate tax change likely.

 

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What to expect if the Democrats win>

http://biz.yahoo.com/weekend/elex_1.htm

[equalizer]

From Barrons 11/13/06

"It's likely that Democrats will tread carefully over the next two years because, in the run-up to '08, they certainly don't want to be blamed for any economic slowdown.

Analysts pretty much agree on what sectors will win or lose with Democrats in control of the legislative branch. Pharmaceutical companies are high on the list of losers, since Congress may seek price concessions for drugs used in government programs like Medicaid. Merck's shares (MRK) fell 7.2% from the close of Tuesday's trading through Friday morning; Pfizer (PFE) was down 6.6%; Johnson & Johnson (JNJ) was off 4.6%. (To see how the hit to pharma stocks may present buying opportunities, see The Trader.) Restaurants, meanwhile, will be squeezed by legislation raising the minimum wage.

Oil companies will be hurt by the elimination of tax benefits or the imposition of a windfall-profit tax. Defense outfits could be wounded by a pullback in Iraq. On the other hand, alternative-energy producers might benefit from legislation to reduce U.S. oil dependency and to cut greenhouse-gas emissions; property and casualty insurers could benefit from an extension of the Terrorism Risk Insurance Act, which Democrats generally support; and mortgage lenders Fannie Mae (FNM)and Freddie Mac (FRE) could get regulatory relief.

As for a tax hike, forget about it. The lame-duck-in-chief in the White House wouldn't approve, and the Democrats' majority is too slight to override George W's veto."

[picpoule]

Yesterday, I read somewhere, that some Democrats were whispering about intervening to prop up housing prices if housing prices continue to decline. But now I can’t find that story! And how would they do this anyway?
Robert Rubin is the Democrat who’s talking about raising taxes. But he’s not elected to anything. Besides, he’s filthy rich, so why would he care if the Democrats raised income taxes? On the other hand, I don’t see how the Democrats could raise income taxes on the middle class, since so much of the middle class is drowning in debt. It would be a really mean thing do to. No, the Dems will wait until 2008 when they have a Democrat president to really get their agenda going.

[hipmatt]

I just hope we raise interest rates, save the dollar from its death, encourage savings and discourage debt. I also hope the ridiculous housing market crashes, but thats just me.

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