CNBC's flamboyant commentator, Jim Cramer, has gone on the record saying that if Scott Brown defeats Martha Coakley for Ted Kennedy's former senate seat that the markets could roar in approval:

Cramer posits:  

Come with me. The number you need to watch is the number that Scott Brown racks up against Martha Coakley in this amazing Massachusetts Senate race. I say amazing 'cause this was supposed to be a walkover. I mean, even a few weeks ago it was a lock for Democrat Coakley. But now everything's up in the air, and a Brown win would be devastating for the president's agenda.

...he continues with his coup de grace...

More important, though, I think investors who are nervous about the dictatorship of the Pelosi proletariat will feel at ease, and we could have a gigantic rally off a Coakley loss and a Brown win. It will be a signal that a more pro-business, less pro-labor government could be in front of us. Hey, would you say it is more China like perhaps? No, we can never be as capitalist as the Communist Chinese. But how about a little bit less like the old Soviet Union? Yeah, that would be a bit more like it. Pelosi politburo emasculation! Everything from the banks, which are usually in the Democrats' penalty box, or the oils which are despised by this administration for being carbon, could be propelled dramatically higher all of this Tuesday night.

This imagines that the increasingly unpopular $1 trillion Obama healthcare revolution would peter out before reaching the finish line.  While possible, it doesn't take into account a variety of ways Senator Harry Reid and Speaker Nancy Pelosi still have to jam this bill through and get a presidential signature with whatever votes they have left.  Washington has its ways.

It does, however, point clearly to the increasing perceptions that the out of control deficit spending in Washington has been taking its toll on the economy and markets.