President Barack ObamaAs the presidential elections approached in 2008, a financial panic set off by the failure of investment bank Lehman Brothers drove an already diving economy into catastrophe. The candidacy of then-Senator Obama got a big boost as investing legends like Warren Buffet backed the newcomer and anti-incumbent sentiment soared.

Now, the scene has changed dramatically. Corporate profits are booming again but President Obama's popularity is sinking fast. The list of financial and business titans claiming that Democratic policies are impeding the economic recovery and hurting US competitiveness, meanwhile, gets longer by the day.

Of course, much of the business sector has always harped about government interference. But now even high profile investors and executives who were once ardent supporters of President Obama are changing their tune. Investors should take note of the fast-defecting business community, since the upcoming Congressional elections could have a major impact on markets in the intermediate term.

Big Players Turn Away

Famously acerbic hedge fund manager Daniel Loeb, manager of the $3.4 billion Third Point Partners, became the most recent Wall Street heavy weight to turn on the Obama administration. In a letter to his firm's investors, Loeb blasted government interference in the economy.

Loeb lambasted the case against investment bank Goldman Sachs (GS) as a witch-hunt and said his firm had to exit investments in educational companies because of the risks posed by a politically charged atmosphere surrounding student lending.

Loeb's accusations are especially stunning since the hedge fund titan was among the biggest backers of the Obama administration just two years ago. But he has some esteemed company in the hedge world when it comes to newfound disillusionment with Obama.

Reports recently surfaced that Steve Cohen, head of the giant SAC Capital, held meetings at his house with that included other industry heavyweights strategizing about how the Republicans could win the midterm elections.

Cohen's move may mirror the shifting allegiances at his firm. SAC employees gave 71% of their donations to Democratic candidates during the 2008 election cycle, according to the Center for Responsive Politics. But employees had now given 93% of their contributions to Republicans as of August 1, as the midterm elections approached.

Angry CEOs

The growing discontent on Wall Street seems to echo that coming from business executives earlier in the summer. Once seen as an Obama ally and a key player in shaping things like energy policy, GE (GE) CEO Jeffrey Immelt lashed out at the President earlier this summer and accused the administration of creating a sour economic climate.

Much like Loeb, some high-profile corporate executives see the Democratic agenda as meddling too much in how business is run and creating more uncertainty at a time when plenty uncertainty already exists.

"The most important thing the current administration can do is remove the number of variables out there," Paul Ottellini, head of semiconductor juggernaut Intel (INTC) recently said. "There are so many things where business leaders can't predict what's going to happen."

Investors would be wise to put their partisan biases aside and observe the major shifts. It is telling that so much of the criticism seems to be coming from onetime supporters rather than ideologues who perpetually have an axe to grind.

And a reduction in policy uncertainty – either through a toned down Democratic agenda, or significant Democratic losses that lower the chances of implementation – could serve as a major driver for the markets in the coming months.

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modmarty

What else is new? It was all there during the campaign and no one paid any attention to who he was and what he was saying. Now we're in a real mess!

September 08 2010 at 10:41 PM Report abuse -2 rate up rate down Reply
mtpkots

Get the curupted goverment out of our lives. They are sending our country down the toilet FAST!

September 08 2010 at 11:45 AM Report abuse +2 rate up rate down Reply
beardog352

to those of you that hate the rich- jeolousy is a green eyed monster- if you are poor or middle class in this country it is your own fault- if you are not wealthy, stop crying and get wealthy or accept the fact that you are not. either way stop crying.waaa - government feed me- waaa government, give me a job I have not earned- waaa government raise my multiple children that I was stupid enough to bring into this world without being able to afford them. In this country everyone haqs a chance to create and/or be whatever they want- if you do not like your financial situation, look in the mirror and you will find the responsable party

September 08 2010 at 12:43 AM Report abuse +1 rate up rate down Reply
jagcapt007

Newsflash We got rid of Bush and the GOP for far less incompetence than this...The party of obstructionist were right to vote NO...The Middle class private sector taxpayers are NOW paying for DNC union pension for life. 54% of all Americans pay no income taxes...Those rich CEO's in the top 10% pay 80% of all taxes collected...Oddly those 30% higher paid union workers pay no income taxes on their cadillac health plan....CEO's are not only taxed, they pay a penalty for wanting that same health plan. I see many and more businesses and Wall Street crossing the pond for greener pastures, not green jobs. We have the highest poverty rate in our entire history thanks to Obama policies, but it can go higher still. Why settle for America when you can have Europe for the same Tax structure and so much better culture? The greatest gifts about wealth...is you can always move elsewhere, and pay someone else to remove the trash left behind. I have never in my life got myself into anything that wasn't profitable. Sadly far to many deadbeats have found a system of making it profitable for them to do nothing.

September 07 2010 at 6:38 PM Report abuse -1 rate up rate down Reply
jagcapt007

In other words, say the CEOs, we have the power to sabatoge you if you don't do as we want. And we don't mind holding the economy and jobs hostage to do it.=================Obama says to CEO's screw you and your greed. I care LESS what SCOTUS says you have no right to vote therefore you have no rights to free speech. ALL WE want is your cash.....shut up and die..Who is this SCOTUS moron?... Than Obama get more mad and tell CEO's You Bastards are also going to pay for illegal mexicans Health care too. In fact you are going to pay for health care of all unemployed people in USA. In fact if you do all that and we still no like you we steal your business and give it free to unions.....You be careful wall Street and Businessman too. I got powerful union friends, and GAYs too.......... The CEO's ponder and think. Lets add this up taxes 40% + health care 30% + employees salaries 10% + Legal fees 30% + pensions 33% OSHA 10%...= 153%.... This doesn't make sense so they finally call in an economist for great salary and ask What should we do? He ponders 35 seconds and smiles Have I got a deal for you..... If you go to china you save 27% legal fees, 10% OSHA 5% salaries 30% pension 25% health care...Gentleman you save 97% but that is nothing. consider this please....You have no lawsuits to form unions, spoiled employees, or spoiled environments and also you save 2 years for an environmental impact statement.....Guys we could become rich, even if we don't make products...The tax breaks and saved legal fees will make us millionaires...... Gentleman PLrease said the china man in a smiling quiet voice....If you ask an employee to do something they say yes sir and do it. Than they ask supervisor if it is good enough. Now the best part is coming...Sadly several of the CEO's were already on the ground via Heart Attacks....The surviving CEO's went to china and smiled, "just do your jobs well, and we all will meet 20 minutes before closing for prayer service" They ALL gathered at the water coolers and the CEO's got on their knees, and the chinese did the same beside them, and they all prayed in a mighty voice.......THANK YOU MASTER OBAMA...life is truly good....please kindly remember our fallen who died with heavy hearts, but an impacted smile that took embalmers months to take off their faces.....They all got into their new cars and as the left for their families the BIG MEGAPHONES screamed out in an old familiar voice.....FREE AT LAST ........FREE AT LAST........THANK GOD ALMIGHTY WE ARE FREE AT LAST

September 07 2010 at 5:31 PM Report abuse -2 rate up rate down Reply
Tommy

Here we go! Obama will screw up the government and the economy! Look at what he did with BP, overstepping his bounds! don't believe me?? check out thesmartdollar.blogspot.com Obama is a bum!

September 07 2010 at 3:23 PM Report abuse -1 rate up rate down Reply
booktone

Alternate headline: "Greedy B**tards Blame Obama for Denying Them the Rest of Our Money"

September 07 2010 at 12:20 PM Report abuse rate up rate down Reply
breeezyboy

Awwwwww, poor little rich boys.

September 07 2010 at 11:32 AM Report abuse +1 rate up rate down Reply
astivone

lol, yeah. of course theyre pissed. obama is actually making them pay taxes, and not have any place to hide their money. go obama, make these corporate fat cats pay what they owe. im sick of seeing the rich and the big businesses get away with having the middle and lower class support the country's taxes.

September 07 2010 at 4:57 AM Report abuse -3 rate up rate down Reply
1 reply to astivone's comment
bhewatt

Oh really? The top 10% of income earners - most of which are small businessmen and women - not "corporate fat-cats" as you call them(jealous?)- pay 80% of the Federal income tax burden in this country. 80%!!!! And the bottom 50% of income earners pay ZERO Ferderal Income taxes. So who's not paying their "fair share?"

September 08 2010 at 3:59 PM Report abuse rate up rate down Reply
jmlawson

In other words, say the CEOs, we have the power to sabatoge you if you don't do as we want. And we don't mind holding the economy and jobs hostage to do it.

September 06 2010 at 11:22 PM Report abuse -3 rate up rate down Reply