Thursday, May 20, 2010

The Democrats Have Hit Their High-Water Mark...


There. It's gone.

So Pelosi is crowing about a lock on the House, and Gibbs is sneering that PA#12 was a race the Republicans "had to win".

Really. And what would Robert had been saying had Burns won? Nothing of the sort, to be sure...

Look - PA#12 is a case where the Democrat tried to run to the right of the Republican, and saturated the airways with false accusations of "tax-hikes", only to withdraw his claims with a whisper and a chuckle. Even so, Mark Critz underperformed the 62% Democratic registration of the district significantly.

Is this Pelosi's plan to keep the House? To have her people run against her, and all of her legislation, then cheerfully vote for her as Speaker once elected? I wouldn't put it past the party whose leader lies every time he moves his lips; but I don't think they can pull off a PA#12 scam on a nationwide level. Especially in districts where they don't have a 62%-31% voter advantage...

Actually, there is very little up ahead that looks to be positive for the Democrats. Rand Paul, soon to be painted as a racist teabagger, is up 25 points on his Democratic opponent (how are those smears going to stand up come November?). And Pennsylvania's Joe Sestak, after defeating Arlen Specter and getting huge national media attention, has opened up a whopping...four point lead on Republican Pat Toomey, who has spent the better part of the last 60 days sitting back and watching. The margin of error in that poll? 4.5%. I'm just saying...

Wait until Charles Djou is announced as the winner in Obama's boyhood Honolulu district, despite the concerted effort of every Democrat in Hawaii to defeat him. That will be the first lapping of the tide....

Here are some other storm clouds on the immediate horizon that seem to bear ill winds for the Democrats:

Jobless claims rise by largest amount in 3 months

Applications for unemployment benefits rose to 471,000 last week, up by 25,000 from the previous week, the Labor Department said Thursday. It was the first increase in five weeks and the biggest jump since a gain of 40,000 in February.
The total was the highest since new claims reached 480,000 on April 10. It also pushed the average for the last four weeks to 453,500.
"Although no one expects this volatile series to go in one direction every single week, this is clearly a disappointment," said Jennifer Lee, senior economist at BMO Capital Markets...

And how's that stock market? As of 2PM:

Stocks tumble as euro drops, jobless claims rise

The Dow Jones industrial average fell about 230 points in early afternoon and all the major indexes were down more than 2 percent. Meanwhile, interest rates fell sharply in the Treasury market as investors once again sought the safety of U.S. government debt.
With Thursday's drop, the Standard & Poor's 500 is down more than 10 percent from its 2010 trading high last month.

And if you think that's scary, check this out, from Business Insider:

Richard Russell, the famous writer of the Dow Theory Letters, has a chilling line in today's note:
Do your friends a favor. Tell them to "batten down the hatches" because there's a HARD RAIN coming. Tell them to get out of
debt and sell anything they can sell (and don't need) in order to get liquid. Tell them that Richard Russell says that by the end of this year they won't recognize the country. They'll retort, "How the dickens does Russell know -- who told him?" Tell them the stock market told him.

Clearly something is wrong. But what could it be? Much as I love Barron's, I trust the stock market more. If I read the stock market correctly, it's telling me that there is a surprise ahead. And that surprise will be a reversal to the downside for the economy, plus a collection of other troubles ahead....

Gee, how will the Democrats run away from that record? They can't, of course, which is why the success of PA#12 will not be duplicated. Which is why - for the Democrats, and unfortunately, for most of the country - it is all about to go downhill. Fast.

Enjoy your high-water mark, Lefties. By the time the American people are done with you, you won't see it again for a generation...

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