Obama's populist attacks drives down stock market
Beating up the banks has sure brought a lot of confidence to the market.
U.S. stocks capped their worst three-day slide in 10 months on Friday on fears the White House's plan to curb bank risk-taking would cut profits, and tech shares slumped after Google Inc's disappointing results.
Uncertainty about the Senate's confirmation of Ben Bernanke for another term as the Federal Reserve's chairman also rattled investors in a week when political squabbles helped erase stocks' gains for 2010. For details, see [ID:nN22139362]
"Between uncertainty over Bernanke, Obama's bank regulation proposal and the election in Massachusetts, the market is like a cork in the water and the Democrats just hit the flush," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago. "It looks like we're headed really low." . . .
Labels: ObamaAdministration, Regulation
posted by John Lott at 3:59 AM
2 Comments:
Alternative title:
"Absurdly high stock market prices slightly deflated by banks removing some of their cheaply-borrowed betting money, especially since this time they haven't managed to sucker the private investor into taking the stocks off their hands"?
Maybe I'm giving Obama too much credit or maybe I'm being a little too "tin foil hatty" but I think the attack on the banks was calculated.
He knew the attack would cause a dip in the market and that dip would hid the surge in the market that would have been the response to the Scott Brown victory (and the implication that his victory would kill Obamacare).
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