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Sunday, June 15, 2008

Experts At Reuters Investment Outlook Summit: John McCain Better Man For The Economy

Despite the fact that corporate America is donating more money to Democrats as they are to Republicans, Wall Street experts from the Reuters Investment Outlook Summit say that John McCain is a "better man for the economy".
Wall Street is backing, or to put it more accurately, banking on Senator Barack Obama, with cold hard cash.

The securities and investment industry has given more campaign contributions to Obama than any other candidate, totaling nearly $7.91 million and exceeding McCain's $4.15 million.

Despite that, it is being said by the Wall Street experts that John McCain's tax policies have given him an "edge" and makes him a better man for the economy.

Henry Kaufman & Co. president, Henry Kaufman, says he was a little "dismayed" when John McCain made a flippant remark about not knowing much about the economy but "carries Alan Greenspan's book under his arm, which he says is not encouraging.

Other Wall Street experts says that McCain's plan which includes extending the Bush administration's tax cuts, eliminating the Alternative Minimum Tax and slashing corporate taxes, makes McCain a better candidate for the economy than Barack Obama's plan which includes, raising taxes on the wealthy and introducing a broad range of refundable tax credits.

The head of global rates research at investment bank Morgan Stanley in New York, James Caron, stated at the Reuters Investment Outlook Summit, said, "My personal opinion is I would argue that McCain is probably the better candidate for the economy and that is more or less because of his tax policies."

Then he makes a point that many have echoed, especially people that live paycheck to paycheck trying to keep up with their bills with the gas prices skyrocketing and food prices following along, saying, "In this environment that we're in right now, the last thing you want to have is higher taxes and taking money out of the consumers' pockets."

The chief U.S. strategist at UBS Investment Research, David Bianco, agrees with Caron, asserting that Wall Street would welcome John McCain with open arms, stating, "My view is that McCain is better for the market."

In agreement with both Caron and Bianco is Alan Ruskin who is the chief international strategist at RBS Greenwich Capital in Greenwich, Connecticut, who says, "The market will respond to McCain corporate tax cuts."

Back in January, Brinker Capital Inc. reported on their quarterly poll of 236 advisers and found that a "Democrat in the White House worried them more than all other economic or geopolitical concerns."

That prospect worries them more than global unrest, U.S. economic growth, a terrorist attack or a recession.

Which brings about the glaring questions of, if a Democrat in the White House worries them so much and they overwhelmingly believe that John McCain is better for the economy than Barack Obama, why the disconnect from their statements with the money being donated to the Democratic candidate?

Are they hedging their bets? Now that the summit is over and they have made their determination about McCain being better for the economy than Obama, will the next months see a flow of donations to the Republican candidate?

All questions that should be answered sufficiently by November.