Ronan Lyons | Personal Website
Ronan Lyons | Personal Website

October 2008

Eight weeks work yields seven states for Obama, just Montana (maybe) for McCain

Between mid and late September, the big story in terms of the state-by-state polls was McCain’s loss of his ‘medium’ states – i.e. those where he had some lead, but not a large one – such as Florida and North Carolina into ‘toss-up’ territory. Obama had managed to garner a few extra ‘strong’ electoral college votes, but nothing seemingly irreversible.

So, what’s happened in the last four weeks? Well, Obama’s overall increase in the national polls is very much old news at this stage, so what can state-by-state polls tell us above and beyond? Obama’s national performance is unsurprisingly replicated in RCP’s state-by-state poll statistics: he has managed to increase his vote by 3% or more in 22 of the 35 states covered by RCP, while McCain has only done similar in two states: Maine, which is solid Obama country, and Texas, which is of course safe McCain territory.

Of most note, from the state by state results, are the following:

  • Pennsylvania (21 votes), exceeded in electoral college votes by just four states, now looks like solid Obama territory, where his lead has increased from 48-44 to 51-41.
  • Ohio, worth 20 votes, has also moved from a toss-up towards Obama – four weeks ago, McCain had 1 point lead. Now, he trails 50-44.
  • Michigan (17) now looks unassailable for Obama, while the much-mooted Georgia (15) upset remains a possibility: in the last four weeks, McCain’s lead has shrunk from 12% to 6.8%.
  • There have been significant gains for Obama in other Tier 2 states, such as Virginia (13), and in particular Minnesota (10) and Wisconsin (also 10).

They are the most important changes – most other gains haven’t really had an impact. So where does that leave us all with only a couple of weeks left?

On September 1, McCain had 99 electoral college votes from 9 states of the 32 or so polled ‘in the bag’ (i.e. with a lead of 10% or more) and just one other state leaning (Georgia). Eight weeks on, all he has to show by way of gains are the three electoral college votes of Montana, where he enjoys a 5.6% lead.

Barack Obama could count, eight weeks ago, on the 156 electoral college votes of eight states, varying in size from California to Maine. Since then, he has added a further seven states – most notably Pennsylvania (21) and Michigan (17) as per above – and seventy-six electoral votes. Another 47 votes in four states are leaning towards Obama, including the sizeable Ohio (20) and Virginia (13).

So, with all that bad news for McCain, where are his glimmers of hope? Unfortunately, they don’t look like they’re hiding in the remaining undecided states. The five states that are still in toss-up territory, as per RCP’s listings, contain 69 electoral college votes – 42 of which are in Florida and North Carolina. Both of those states lean slightly towards Obama, as do two of the other three.

Perhaps his hopes lie in the possibility that people are more likely to say they’ll vote for Obama than actually will, as some have suggested. Or that the turnout from Obama demographics such as the young and African-American will be low. Then again, for each commentator saying that, there are others who believe that young voters are grossly under-represented in traditional polls conducted using landlines. Who knows?

Still, it could be worse… Just take a look at the Economist World Vote. Obama 8,957-31 McCain. Cuba’s status is surely the biggest turn-up for the books!

Economist.com World Vote, Oct 23 2008
Economist.com World Vote, Oct 23 2008

Altogether, a simple sum of all the strong, medium and weak votes for both candidates gives Obama a whopping 337-128 lead. As was famously once said, “they think it’s all over…”

"WARNING: Your investment may go up as well as down!" and other signs that you're in a financial crisis

Warren Buffet – no relation to the Pina Colada-swilling Jimmy – has been widely quoted in recent days giving his latest advice for the market. In short, what with everyone being fearful, he’s recommending that people be greedy. Take the long term view, he says, and the US stock market (and, based on his logic, most other stock markets) look like excellent value.

It seems that the value of investments may actually rise. To those of us for whom the period since February 2007 marks the bulk of our market exposure, this came as something of a shock. Not only this, it seems the Financial Regulator has found a clause in its Terms of Reference indicating that, to regulate financial organizations, it’s allowed find things out about them and so is going to employ people to do just that.

Given these twin bombshells, the pressure is surely mounting for the Financial Regulator to change the blurb that they give to their oversee-ees (digression: how many actual English words have the same letter more than two times in a row?) to put in at the end of their ads, to something along the following lines:

XYZ Bank is regulated by the Financial Regulator. No, honestly, we mean it this time. We’ve actually got people on the inside and everything.

Warning – your investment may go up as well as down. Past shocking performance is no guide to actual positive returns in the future.

Some other thoughts on how you know you’re in a financial crisis:

  • References to today’s losses of x billion euro on the stock exchange are the equivalent of the weather. You try your best to pay attention but it all sounds so similar that you just can’t help but switch off.
  • You’re shocked to get through an entire edition of Morning Ireland/Prime Time/Six-One News without one reference to ‘more news from the stock markets’ (as happened on Friday 17th, honest!)
  • Casual conversation in the pub may actually include a discussion of the liquidity and solvency of Icelandic banks. (Pre-post-Celtic Tiger references to Iceland’s economy would surely have just been a reference to some amazing off-the-plans property deal north of Dalvik.)
  • Every ad for your money – and have you noticed that there are an awful lot of them about at the moment? – makes absolutely no reference to average annual return year-to-date or even over the past 5 or 10 years.
  • Jokes not heard since 2001 are being reeled out. (Prime example: “Q: What’s the quickest way to become a millionaire? A: Lose your billionaire status.” Chortle.)
  • There is great demand for punters who even half sound like they know what they’re talking about when it comes to (a) what’s happened Japan since 1990, (b) the Great Depression or (c) the ability to Google Sweden’s early-1990s financial crisis.

Personally, I’m gambling it’ll only be a matter of time before someone wants a pundit on the Long Depression of the 1870s, 1880s and 1890s. That’s right… it spanned three decades! And when they do, then… BAM… I’ll make my move.

(Right after this guy.)

Brother, Can You Bail-out my Bank? (1931 revisited!)

Every crisis creates its own artistic genius – take for example Picasso, or the Credit Crunch Blues. Mere mortals mightn’t move in quite the same league, but we can try. So, with sincere apologies for the butchering of Jay Gorney’s lovely music and the usurpation of Yip Harburg’s original lyrics, Weird Al, this one’s for you!

Brother, Can You Bail-out my Bank, lyrics by Ronan Lyons, music by Jay Gorney (1931)

Once I built a hedge fund, I made it fly, made it rise all the time.
Once I built a hedge fund; now it’s gone. Trichet, can you bail-out my bank?
Once I bought a bank share, at the top, lent a mortgage, sub-prime;
Once I bought a bank share, watched it tank. Paulson, can you bail-out my bank?

Once in red braces, gee we looked swell,
Full of that Ghekko Doodly Dum,
Half a trillion bills went slogging through, Hell,
And I hit the NYSE gong!

Say, don’t you remember, they called it wrong; it was to go up all the time.
Why don’t you remember, before it sank? Darling, can you bail-out my bank?

Once in red braces, gee we looked swell,
Full of that Ghekko Doodly Dum,
Half a trillion bills went slogging through by the bell,
And I was the kid with the gong!

Say, don’t you remember, they called it wrong; it was to go up all the time.
Why don’t you remember, before it sank? Sucker, can you bail-out my bank?

(Next stop a recording studio!)

Will even one state vote for McCain? Unlikely, it seems…

Will even one state vote for McCain? Unlikely, it seems…

… if you take a look at the (nation) states included in the Economist’s ongoing survey, “Global Electoral College: What if the whole world could vote?“. That’s the quite frankly amazing conclusion of the early voting. In not one country on earth would the McCain-Palin ticket garner more votes, among Economist.com readers, than the Obama-Biden ticket. At first glance, the map below looks like a nice blue atlas, but then I realized the legend in the corner: blue means strong Obama (red, were it there, would indicate strong McCain).

Plucky El Salvador, worth 3 electoral votes out of the global 8,200 or so, is currently 50-50, having been pro-McCain earlier in the race (naturally, one does wonder about sample sizes, but let’s go with this for the moment). Interestingly, Kenya is most certainly a lock for Obama, it’s 100%-0% in his favour, due to his roots. If only US states were as loyal in elections!

The funny thing is, there’s a good part of the McCain team that probably wouldn’t even care about this result, were it to stay this way. McCain himself would presumably be somewhat hurt, given the relatively high levels of respect afforded to him by the typical non-American with an interest in US politics (such as myself). I’m guessing the Palin-side of the team, though, would be happy to interpret something like this as yet another indicator that Obama thinks too much like a non-American and not enough like the average American.

All in all, a fascinating exercise in global opinion polling, in my humble opinion.