The perennially optimistic Larry says:
The communists were put to rout in the Indian elections. This suggests that India will take new steps to liberalize its economy, including foreign investment, free trade, privatization, and tax cuts. This is a big plus for global economic recovery. And the Indian elections may well have triggered the stock rally right from the opening bell this morning.
Plus: Morgan Stanley will probably de-TARP, along with Goldman Sachs, JPMorgan, and perhaps others. No one knows for sure, but I think of de-TARPing as a kind of falling of the Berlin Wall. Let economic freedom ring. Let banks get out from under the yoke of government controls.
Yes, there will be shareholder dilution as the banks raise new equity capital. But the thought of banks freeing themselves from Team Obama way offsets any near-term dilution issues.
And out on the Left Coast, California voters look set to deny big state-government taxing-and-spending initiatives in tomorrow’s election. It’s a Prop 13-like vote. And it suggests that the Tea Party movement is in fact indicative of a tax-and-spend revolt going on around the country.