Just a little pre-election roundup.
WINNERS and LOSERS in an Obama administration.
-Energy companies-Coal, Oil, Nuclear Happy days are not here again for you guys. Anybody want to build a power plant? Bankruptcy for you. Also all utilities, and lets throw in trucking (high gas prices) and railroads (which deliver most coal to power plants) while we are at it. LOSERS
-Sweater industry. We’d better button up, for our own good. We deserve being cold. Also a winner is the candle industry. WINNERS
Remember these? They will be back in style, and with hoodies.
-Foreign auto manufacturers. Toyota, Honda, BMW and others have been building plants throughout the South and Midwest, outside of Michigan of course. They’ve benefited from “right to work” laws in these mostly non-union states. Obama will reward the state of Michigan with bailout money to the Big 2 (Ford and GM) and do away with secret ballots for unions. The end result is fewer auto industry jobs outside of the state of Michigan LOSERS.
-The Big 2 (Ford, GMC) in the near term will benefit from lemon socialism, but in the end no one will want to buy shoddy cars. That is, unless they are heavily discounted and people are too poor or unemployed and can’t afford better cars. WINNERS (for four years).
Imagine this made entirely of plastic.
-Wal-Mart, Between Card-check laws and a bigger welfare state, Wal-mart is going to get hammered. They can only hope to be buoyed by the many other cost-saving techniques they employ, but no Clinton type love for these guys anymore. LOSERS
-Costco, unionized by the teamsters, should be fine. WINNERS. By the way, Wal-Mart has 1.8 million employees, 18 times more than Costco. Just throwing that out there.
-Health Insurance companies…head for the hills, guys. The dumbing down of the definition of children up to age 24, and increasing S-Chip coverage in many states, have been eating away at the market for years. Last year the democrats overplayed their hand and attempted a huge expansion, providing health coverage for every child in a family making less than 90K. Sounds good but who pays the bill. I predict this entire industry is toast unless Obama is not elected or the GOP gets the mid-terms. BIG TIME LOSERS.
-Doctors, Nurses, Therapists. The jobs here will always be safe, but malpractice lawsuits will definitely go up in an Obama administration, and when a monopoly such as medicare sets the prices, prices will go down and money will be coming slowly. The good thing is you can see fewer patients since you have no profit motive! WASH.
-For all you nurses out there, those guys that come to ERs every day complaining about phantom pain until they get a prescription for percocet they can sell for $300 a bottle on the street, well guess what, they can call the prescription in under an Obama administration. WINNERS.
These guys have serious back pain, and they need medical attention immediately.
-Pharmaceutical companies. George W Bush’s medicare prescription was a big lollipop for big pharma, an egregious expansion of government expenditures. Well, what government gives, government can take away. The pendulum never stops in the middle. Obama will want to negotiate drug prices down, and laws restricting patents and adding burden to clinical trials may seem to benefit the consumer, but it will also delay life-saving drug and put a lot of high income employees out on the streets. LOSERS.
I hope you don’t expect to get paid for this.
-Telecom industries. Net neutrality is officially coming. Google (praise be to Sergey) donated a lot of money to Obama, they will want a return on their investment. That means less profits for cell phone providers and all those companies that lay down the fiber optics necessary to provide wi-fi. That’s ok guys, just stop working so hard. America apparently needs to kick it’s unhealthy addiction to progress. LOSERS.
-Banks. The tricky thing here is now government chooses which banks are winners and which are losers. Goldman Sachs, WINNERS. Citibank, Bank of America WINNERS. Wells Fargo, LOSERS. If President Obama gives a big chunk of the bailout money to homeowners and allows them to renegotiate not only the interest rate but the principal on their mortgage see below, all banks will be crippled. Some WINNERS, mostly LOSERS.
In a call to Maryland Rep. Elijah Cummings on Tuesday, for example. Obama spoke of how President Obama could revisit bankruptcy laws to give judges more leeway to restructure residential mortgage payments when threatened with foreclosure.
Obama didn’t need to lay out a quid pro quo because the message was clear. And Cummings, a no vote Monday, told Obama he was “open” to changing his vote but wasn’t there yet.
“I have to look beyond [the bailout] to a rainbow called Obama,” he said. “When you bring in the Obama factor, that’s very very important.”
-Military contractors. For better or worse, BIG LOSERS. Hunker down and hope Barack wants to peacekeep in Sudan, or Rwanda, or some other cesspool at no benefit to the American people.
-E-bay. In the barter economy, a necessary staple. WINNER.
-Gun manufacturers – Short term BIG WINNERS until Obama starts nominating judges, then big LOSERS. Sell while you can.
The biggest WINNERS. Government. Are you an accountant hit hard at Wall Street? Join the IRS. In the housing industry? Fannie and Freddie will be building projects for the lowest bidder real soon. Unemployed? Don’t worry, unemployment benefits are going up, maybe you can get a job at the unemployment office? See, there are plenty of safe easy jobs available at Washington DC or your local state capitol soon, with a pension not tied to those wacky free markets.