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Thursday, November 15, 2012

Dow Jones Drops Nearly 700 points, About 5 Percent Since Presidential Election

By Susan Duclos

By Wednesday, November 14, 2012, just eight days after the presidential election, Dow Jones Industrials toppled 185.23 points, or 1.5%, to 12,570.95. The S&P 500 fell 19.04 points to 1,355.49.  Nasdaq Composite Index tumbled 37.08 points to 2,846.81.

Since the presidential election Dow has dropped nearly 700 points or roughly 5 percent.

Stocks have been under pressure this month as concerns about the fiscal cliff have dominated the market following the election of President Obama.

Most investors expect a compromise, but they are not taking any chances until Obama and Republicans in Congress reach a deal to avert the onset of automatic tax hikes and spending cuts that could push the economy into recession.

Despite the stock market plunge, Barack Obama is refusing hundreds of billions in tax revenues offered by Republicans in Congress because that revenue comes from methods other than raising taxes.

If a deal is not reached to prevent the automatic cuts proposed by the Obama administration in last year's debt limit deal, the CBO has said that America will go over the "fiscal cliff" and another recession will be on the horizon.

Should that happen it should be accurately named The Obama Recession.