Big-ticket items would get axed in favor of personnel growthhttp://www.marketwatch.com/news/story/obam... Goldman Sachs said Tuesday they expect a Barack Obama presidency would cut into earnings for many military contractors by reducing funding for large weapon platforms in favor of increasing soldier recruitment.
"If victorious, we think an Obama administration's policies will result in modest increases in overall defense spending, significant growth in readiness spending and reduced investment spending," Goldman Sachs analyst Richard Safran wrote in a note.
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Goldman Sachs's Safran noted that Obama has received little campaign funding from military contractors, which chose instead to shower Sen. Hillary Clinton, D-N.Y., with the most cash. Among the original field of declared candidates, Sen. John McCain, R-Ariz., had been the third biggest beneficiary of the contractors' money, with Obama coming in seventh.
"In our view, political contributions afford access to politicians, and we have to wonder how supportive an Obama administration would be, given that defense companies favored Clinton in terms of political contributions," Safran said
