Wall Street and Election Politics

Today, Democratic presidential candidate Barack Obama tried to link John McCain to the turmoil on Wall Street. His Republican rival McCain said that Obama close ties to Fannie Mae and Freddie Mac. In an interview, Americans for Tax Reform president Grover Norquist told me that «Fannie and Freddie will be the Democrat’s Enron, but it will be way more expansive than Enron».

The troubles on Wall Street will not affect the outcome of this year’s presidential election, I believe.

As it has become clear in the last couple of days, both Obama and McCain or their running mates have little financial market knowledge. What’s more important: Voters who have not made up their minds by now will have even less understanding of what’s going on. The so called undecided voters tend to cast their vote based on social issues, not complex financial structures.