An Obama Panic? Markets Fear His Policies, Charlie Gasparino, NY Post

Barack Obama has remained cool and confident amid the financial melt down, even as John McCain at times has been embarrassing, lurching from one proposal to the next. But while the polls are reflecting Obama's steady hand, the markets haven't. In fact, they're getting worse by the day as Obama's lead widens.

Most investors know the devil is in the details - and the details of Obama's economic plans are anything but reassuring.

Of course, the market turmoil is first a reflection of grim reality - the bursting of the housing bubble and the billions upon billions in writedowns and losses that have forced upon the hugely leveraged financial firms companies that had cranked big profits during the bubble years.

The resulting credit crunch is hitting Main Street harder than ever before. The country is headed for recession; the only question is: Just how low can the markets and economy go?

It could be a lot lower - it all depends on the policies of the next president.

And, as it looks increasingly likely that Obama will be that man, the markets are casting a vote of "no confidence."

To be fair, McCain hardly instills confidence among the Wall Streeters I speak to. Why has his campaign spent the last week focusing on Obama's friendship with former terrorist William Ayers - when it should be hitting Obama's blind loyalty to policies that bring together the worst elements of Herbert Hoover and Jimmy Carter?

Recently, Obama said he wants to expedite loans to small businesses, so he seems to have a clue that they produce much of the country's job growth. Yet his income-tax hike on upper brackets will hit vast numbers of small businesses - they'd face the highest rates they've seen in decades.

Overall, his plan includes some of the most lethal tax increases imaginable, including a jump in the capital-gains rate. He'd expand government spending massively, with everything from new public-works projects to increases in foreign aid to a surge in Afghanistan - plus hand out a token $500 welfare check that he calls a tax cut to everyone else.

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An Obama Rally?, Barry Ritholtz, Big Picture

My pal and occasional CNBC sparring partner Charlie Gasparino is a great investigative journalist. His book Blood on the Streets is required reading for those who want to understand the 1990s bubble market.

Where Charlie and I disagree is often in his opinion pieces. We've clashed over CRA, Fannie and Freddie -- GOP talking points all.

Our latest bone of contention is his OpEd column in today's NY Post, titled AN OBAMA PANIC? MARKETS FEAR HIS POLICIES. Charlie in part blames the market's recent selloff on Wall Street's fear of an Obama presidency.

Note that headline and sub hed -- written by editors, not the writer -- is far more provocative than the acual text.

It is a well trod, flawed argument we've analyzed in the past:

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CNBC's Gasparino Problem, Felix Salmon, Market Movers

Charlie Gasparino has outdone himself today. He reasonably blames much of the current financial crisis on "a lack of leadership from Washington" -- but somehow manages to convince himself that it's Obama's leadership which is lacking, rather than Paulson's or Bush's. "An Obama Panic?" says the headline; the subhed is "Markets Fear His Policies".

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This is bensteinery of the first order: not only is it ill-argued, it's also utterly wrongheaded. Yes, it's a good idea for the government to spend money in a recession. Yes, it's a good idea to target that money at the poorest members of society, where it will do the most good and have the highest velocity. And no, with stocks down 40%, there really isn't an enormous number of people worried about capital gains taxes.

Still, one could forgive the litany of GOP talking points on a right-wing op-ed page were it not for the fact that Gasparino styles himself a working reporter. The more you set down your opinions in black and white, the less open-minded you become; this is true of everyone, and especially of stubborn, bull-headed types like Gasparino.

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