Banks are solely to blame for the damaging loss of confidence in the market?
Because I'm pretty sure the market has already figured in the bank problem at this point. Don't get me wrong, I think banks have a lot of responsibility in this mess, but the fact is, the stock values of the banks are at such levels that they could all go to zero and not have a huge affect on the DOW. Bank of America is $5. Citigroup is $2.50. AMEX is $13 and JP Morgan is a whopping $21. Glad my portfolio doesn't really trade with the DOW since the only DOW stocks I own are MCD and JNJ.
Could the fact that every time his boss has opened his mouth for the last two months using his peppy words of doom and gloom corresponding with a precipitous 2500 drop in the DOW be the real cause for the damaging loss of confidence in the market? Take today for example. Yes, the DOW was down 180 in early trading but managed to crawl its way back to +80 heading in to the last half hour. Obama then had a news conference about who knows what new spending bill he was planning to pass, but the fact of the matter is, as he spoke, the DOW ticker in the bottom corner of the screen dropped like a rock to end down 80 points. Just like that. Gone. Thanks.
Maybe the loss of confidence is related to the fact that NO ONE HAS A PLAN! They can sure spend like there's no tomorrow. Obama has kept Geithner in a closet since his disappointing debut a month ago and he has the nerve to "come out" just to try and convince us that everyone else, except our ever increasing big government, is to blame for damaging loss of confidence?
Maybe it's when I read articles like this one that makes my blood boil: http://www.cnbc.com/id/29389477
Let me state my feelings in the words of Geithner: I am "deeply offended by the quality of judgments we've seen in the leadership of our nation....."
http://www.cnbc.com/id/29394378
U.S. Treasury Secretary Timothy Geithner on Wednesday scolded bankers for creating a damaging loss of confidence, but said nationalizing banks was the wrong strategy for the United States.
In an interview with Public Broadcasting Service's "Newshour" program, Geithner said he was "deeply offended by the quality of judgments we've seen in the leadership of our nation's financial institutions."
"They've created a deep hole of public distrust and anger which is enormously damaging, and they have a huge obligation to try to restore that basic trust and confidence. And we're going to make sure they do it by making sure that our assistance comes with conditions," he said.
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Here's a really good post from another blog...
http://market-ticker.denninger.net/archives/830-The-Singular-Problem-With-Credit.html
A major problem is the rest of the world who buys our debt (treasuries) has lost confidence.
Very true. There are TRILLIONS on the sideline and like the article said, no one is confident that the same thing won't happen again. I don't blame them. Unless you short or day trade, there's no incentive to be long in this market.
Now we have Obama announcing tax increases to the wealthiest plus letting the Bush cuts expire.....It's completely irrational ( and irresponsible ) to make that kind of announcement days after passing 800 billion and another 410 billion with over 600 billion waiting in the wings of garbage waste spending and claim raising taxes is necessary to pay for it.
Why would those trillions bother to come back at all now?
I'm beginning to think we're not going to be democrat/republican but socialist/captialist.
With the Geithner "AIG" indignant public response to the bonuses paid to executives, I have to ask "where were YOU Turbo-tax Tim", shouldn't you have KNOWN this was happening a LONG time ago? And, at least some of this probably can't have been stopped because of prior contractual obligations.
I find myself asking how indignant and upset should we as taxpayers should really get, when we have allowed almost $2 Trillion to be rammed through Congress almost overnight (and not even read by those voting on the bills) most of which is a lost-cause and in all actuality, is being thrown down the drain. Where's the cries of indignation for that?
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