Analysts views on U.S. election results

WASHINGTON, (Reuters) – Republicans were declared  winners in some key Senate races early last evening and  were projected to win control of the U.S. House of  Representatives, pointing to a shift in power that was likely  to cripple President Barack Obama’s policy agenda.

Here is some reaction from analysts to the midterm  elections and their policy implications once the votes are  counted:

JIM KESSLER, VICE PRESIDENT FOR
POLICY AT THIRD WAY, A  MODERATE
PROGRESSIVE THINK TANK

After the election, Obama will need to reorient his party.
“He needs to lead the Democratic Party in a new and modern  direction. The party needs to transform from one that is  focused principally on economic security to one obsessed with  economic growth … The 80-year quest to construct a sound  safety net is now over.”

If Republicans capture not only the House of  Representatives, but the Senate as well, “it would be a punch  in the stomach” for Obama.

He could govern with Republicans in control of both  chambers of Congress, as President Bill Clinton did. “However,  I wouldn’t expect much in terms of agreement in the first year  … the best a Republican Senate could do is thwart a future  Obama agenda. With Obama holding the veto pen, the GOP could  only do so much.”

DAVID MIN, ASSOCIATE DIRECTOR,
CENTER FOR AMERICAN  PROGRESS,
A MODERATE THINK TANK

“Legislative gridlock would encourage Tea Party activists,  but it would restrict Washington’s ability to respond to  potential further economic distress and to give the economy  another shot in the arm. “Clearly it’s not going to be from  fiscal stimulus at this time.”

“We could see some reckless activity in the cessation of  spending … Worse than gridlock, we could see a shutdown of  normal government activity. That would have a significant  effect on economic growth, an anti-stimulus if you will.”

ETHAN SIEGAL, ANALYST, THE WASHINGTON EXCHANGE, PUBLIC  POLICY ADVISORY FIRM

“The newly elected crop of House and Senate Republicans  will see their mission as not to compromise and cut deals with  President Obama, but rather to destroy his remaining agenda and  undo healthcare and financial services reform …”
“This will be a positive sentiment election for investors  — they will get the peace of mind they want, at least for a  day or two, until the Bush tax cuts issue resurfaces.”

ROBBERT VAN BATENBURG, HEAD OF EQUITY RESEARCH, LOUIS  CAPITAL MARKETS

“It looks to be a good start for Republicans who gained  comfortably a Senate seat in Indiana, and where the  iconoclastic tea party favorite Rand Paul won in the Kentucky  midterm elections.”