[quote=TheBreeze]Holy Jesus! Obama speaks about the economy and the market responds as if supercharged on hope and change. What an incredible, incredible gain. At one time the DOW as up almost 600 points — all on the words of an incredibly intelligent, great man.
The market is in awe (as am I) of Obama’s tremendous grasp of economic policy. [/quote]
Oh, good grief Breeze! “Supercharged on hope and change”? Really, you need to cut down on the Kool Aid 😉 Were you actually watching the market as Obama delivered his speech?? Here’s what really happened: the market rallied hard on the news of the Citi bailout and was up 314 points when Obama took the podium. Then he starts mumbling about Main Street and a stimulus package, and the market goes sideways, then slowly starts to trickle south. Then the real fun started during the Q & A. Obama refused to specify the amount of the *sizeable* stimulus package. The market went down 40 points. And THEN someone asked Obama if he still planned to raise taxes on the wealthy (read: 350K+), and Obama effectively said that he intended to do just that. And then the market dropped to a 220 point rally.
So in the 20 minutes that Obama was actually before the camera, the Dow actually lost 100 points! It actually dropped as much as 150 points 2/3 of the way through his press conference!
Later, after Obama’s conference ended, the Dow began to shake him off and slowly rise again. Seriously, the traders/CNBC pundits/hacks were not impressed, Breeze. The market was expecting more. That the Dow managed to close up as high as it did had nothing to do with Obama’s address and everything to do with the futile Citi bailout, which we all know will only lead to another round of profit-taking tomorrow. Only a fool would think this rally has legs longer than a centipede’s.
Here’s one of my favorite exchanges after the conference:
Melissa Francis (CNBC): “Was it just me, or did [Obama] seem a little more quiet and inspiring less confidence…?”
Michelle Cabruso-Cabrero: “You mean less ‘presidential’?”
Melissa: “Well, I wasn’t going to say that…”
The market is not in awe of Obama’s “tremendous grasp of economic policy”, as you seem to be. The market was wondering, “Where’s the beef…?” and “Are you seriously going to tax the bejeesus out of us??” Seriously, this kind of delusion helps to explains how you fell so hard for the Emperor with no clothes. I am genuinely and sincerely worried that your plunge to earth when Obama inevitably disappoints you is going to be spirit-crushing. It’s very sad to watch, actually.
Anyhoo, next time, be sure to check in throughout the day and while Obama is actually speaking — not just at market close.
But hey, don’t take my word for it. Check out the Washington Post:
