The Midterms Just Exposed How Bad It Really Is…

Why didn’t the stock market crash?

Yesterday’s election produced a radical change in the makeup of Congress. Democrats will take control of both the House and Senate in January, flipping seven Senate seats and winning at least 258 seats in the House.

Democrats won Senate races in places such as Iowa, Kansas, Ohio, North Carolina, South Carolina, and Texas. They also flipped governorships in Texas, Georgia, Nevada, Ohio, and Iowa.

This wasn’t a minor correction. It was an electoral earthquake.

And the financial-market reaction was almost pure indifference.