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December 2, 2008 8:08:59 PM CST



Analysts: Mac Win Likely to Hit Defense Firms Harder

Posted Sep 6, 08 2:10 PM CDT in Business Politics 

(Newser) – The defense industry is generally wary of Democratic wins, but this time around it's a Republican victory that may give military industries—and their investors—a complex, MarketWatch reports. A President Obama would be unlikely to give critics of his foreign policy cred ammunition by slashing defense spending, analysts say, while John McCain has the clout and the Washington know-how to puncture bloated military budgets.

"McCain brings the Nixon-went-to-China approach," says one expert. "He has conservative, big-defense credentials and the political experience to take surprising actions." Whoever wins will have to balance a federal budget buckling under record amounts of debt racked up by the previous administration—currently $9.5 trillion. Both candidates have vowed to cut defense bills through smarter spending while boosting troop numbers.

Source MarketWatch

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John McCain speaks during a visit to defense contractor BAE Systems' assembly line for Mine Resistant Ambush Protected vehicles (MRAP's) in West Chester, Ohio. Tuesday, Feb. 26, 2008.   (AP Photo/David Kohl)
John McCain tours defense contractor BAE Systems' assembly line for Mine Resistant Ambush Protected vehicles (MRAP's) in West Chester, Ohio. Tuesday, Feb. 26, 2008.   (AP Photo/Gerald Herbert)
John McCain mimics talking on the telephone as he answers questions from employees during a campaign stop at BAE Systems, a defense contractor, in Nashua, N.H., Friday, Jan. 4, 2008.   (AP Photo/Charles Dharapak)
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We don't believe that Obama has the national-security credibility to reduce defense budgets, nor do we think that the Democratic Congress will want to be viewed as weak on defense. - George Shapiro, Citigroup analyst

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