Sometimes optimism and contrarianism can complement each other.   Here is a thought.

The health care bill is so unpopular and causing such outrage that other damaging proposals like the Union Card Check bill and Cap and Trade may have no opportunity at all.

By staking all their value on the health care bill which is years away from being effective, and filled with provisions that may not pass Constitutional muster, they risk having it overturned by the new Congress if the Democrats lose substantial representation.

The Democrats may have pushed too far which will erode their power.  A year ago the Republicans were badly whipped, and the Democrats talked about a 50 year reign. Now polls have the Democrats down substantially. The promise of a new era of bipartisanship has ended with the most radical bill yet passed in the Senate with not a single Republican vote.  The promise of transparency has become just another hollow and unfulfilled promise.

The independents that elected Obama have no party loyalty and will turn much quicker than the committed party members.

All of this may be factored into market expectations. The net effect of overreaching arrogance may a far shorter reign than the administration expected.

If the Democrats had been more inclusive and centered they could have gotten more Republican support and we would have possibly ended up doing more damage to the economy than their extreme tactics have caused.