Tuesday, August 2, 2011

The Obama market: A 265 point collapse

Deja vu all over again as Obama and Reid talk taxes, shared sacrifice and QE3!

Back in December 2009 I had written the article below that is relevant, unfortunately, again today.

It speaks to how the financial markets are the greatest arbiter of the potential impact of the decisions that take place in Washington.

Today President Obama and Harry Reid both spoke of the future in terms of taxes, shared sacrifice and what sounded very much like a call for QE3.

The markets answered with an emphatic nay!

Obama Speaks and the Markets Answer

(TPC, February 25, 2009)

Obama Is On My T.V. More Than I Love Lucy Reruns

One thing that you have to say about our new President is that he is not shy. He definitely likes his face time and loves to hear himself speak. The problem is that the rhetoric stays the same and the American people as well as the world markets want to see results and not just well spoken words.

Last night we had the Washington puppet show of up and down applauding depending on the side of the aisle you sit on.

Hard to believe that there are typically no clapping dissenters on either side. You had the head puppeteer, Nancy Pelosi with a smirk or a smile glued on her face during what was really a somber speech about the economic condition of the country (see above).

Could it be that this is the perfect example of the fact that she does not feel any of the economic pain, but is happy about the totally partisan aspect of the occasion?

Is this show of the laughing and back slapping on the way into the speech by all of these representatives just another example of how incredibly out of touch they are? Do they laugh and back slap on their way into a funeral?

Not to equate the two but the country is currently in an economic ICU. How about if these representatives cut the crap and really, really tried to come up with viable solutions to fix this mess? It is unbelievable!

As Always, The Markets Are The Greatest Arbiter Of All

Well Mr. President, the markets will typically give some type of post speech bounce even if short lived if they see any aspect of hope or possibility in the things that you say. You got none of that which should be a guide to you that perhaps the need is for less face time and more results from the minions that you put into critical positions.

It is now time for you to accept your new successes or failures and stop blaming the past because the fact is that you now own this. Those that voted you into office on the sweeping promises of changing broken Washington will very quickly turn as they see layoffs, store closings and the markets continue increase and suffer.

Your administration is now well on its' way to the 100 day report card, and while you can point to things that have been passed, can you point to things that you have accomplished. There is more than just a subtle difference.







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2 comments :

  1. Oh, please, Obama does not control the stock market. The investment banks and hedge funds do. Did you know that it's so bad now that 3/4 of all trading in the U.S. and Europe is flash trading? That's an electronic trade, controlled by computer, that lasts about 20 seconds. It's just another scam about which the SEC does nothing.

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  2. Of course he doesn't control the stock market. It's his tax, spend and shared sacrifice policies that dictate direction and the flash traders dictate the volatility around that direction.

    I was a proprietary equities trader for 20 years and have a pretty good working knowledge of how the system works. Remember Susquehanna and the original program traders?

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