Stock Market Unhappy With President Obama
On Friday, the stock market took another big nose dive for the third day in a row. The Dow Jones dropped 217 points after President Obama’s speech, where he said that he wanted to have tougher regulations on banks that come up with tricks to help make their profits rise, but a very risky to both the banks and the economy.
Overall that just added to the 522 points total that the Dow had fallen over the past three days, four total of 5.2%. Investors didn’t seem to be happy with some of the bank reports that were coming out showing how their fourth quarters had performed. As I wrote a few days ago, it seemed as though some banks did well and some banks did badly, and except for a couple of the super large banks everything seem to balance out fairly well. I guess that shows how much I know about how investors think.
In general, the logical part of my mind just doesn’t get this. Whereas I have an understanding that investors want to try to make as much money as possible, they can be a single one of them who is forgotten just where we were last year at the same time. The stock market had gotten to a point where the Dow almost went under 6500, and that was pretty much because of the banking industry. Okay, not only the banking industry, but they were the biggest recipients of most of the government TARP money. For these same investors to now cause the market to fall just because President Obama wants Congress to pass legislation so that we don’t get into that position again just blows my mind.
It also isn’t helping that suddenly Fed Chairman Ben Bernanke isn’t looking like a slam dunk he seemed to be in getting renominated for his position. It also doesn’t seem to help that it looks like Tim Geithner is losing some of his power in dealing with the financial issues. His performance has been questionable for a while however, and it seems that he got out of the gate badly and never really recovered from the bad press of not paying his taxes. Overall, he’s never looked like the financial genius that some had thought he would be.
Personally I am in favor of President Obama’s directives; then again, I haven’t felt a lot of trust for any of the banks through all of 2009, and 2010 isn’t making me feel any more warm and fuzzy towards them. What are your thoughts?