Stocks slide as Obama calls for tougher bank rules

[TomCADem]

Source: Associated Press

NEW YORK (AP) -- President Barack Obama's plan to change the way big banks make their money plunged the stock market back into the fear and uncertainty that marked the financial crisis.

Obama said Thursday he would ask Congress for limits on how big banks can become and to end some of the risky trades financial companies use to supercharge their earnings. Investors sent stocks tumbling as they worried the plan would destabilize Wall Street's 10-month rally.

Big bank stocks skidded, yanking the Dow Jones industrial average down 213 points and erasing its gains for 2010. Over the past two days, the Dow dropped 336 points, or 3.1 percent, its worst slump since June. Wednesday's drop came on more global concerns, that China's economy would slow and hurt other countries as well.

Todd Leone, managing director of equity trading at Cowen & Co. in New York said some rules need to be changed after the financial crisis of the past two years but that the government was reaching too far.


Read more: http://finance.yahoo.com/news/Stocks-slide-as-Obama-calls-apf-1512287612.html?x=0&sec=topStories&pos=7&asset=&ccode=

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Okay, repeat after me, the financial meltdown and recession is not Big Business's fault, it is primarily Big Government's fault. Repeat this a thousand times a day between now and November, and with the Supreme Court ruling, perhaps corporations will be able to run for office and cut out the strawmen who currently occupy Congress.

[msongs]

1. oh I thought Brown elected to senate was the cause- happened the next day lol nt

[bhikkhu]

2. I'd like to see it happen

but I'm sure not holding my breath. Fired up and ready to go runs out of steam after awhile, if you just keep going nowhere.

[PSPS]

3. I don't believe this

I think this is some kind of media mania to ward off any regulation of the bankster criminals. I think the real reason for the market's drop is China's decision to scale back its banks' lending. (The largest banks in the world are now all Chinese.)

http://www.minyanville.com/articles/shanghai-china-banks-stop-lending-raised-reserve-requirements-inflation-asset-bubble-/index/a/26428

[Iowa]

4. Short-term fluctuations in the market are as meaningful as those color coded terror threat levels...

The only enlightenment they might provide is to identify those news organizations and reporters who are clueless enough to place any stock in them.

[golfguru]

5. About time they stopped the banks from stealinig

I support this initiative by the president whole heartedly.

[dogfacedboy]

6. I wouldn't care if the Dow hit ZERO.

New regulations need to be put into place..period. If the market totally crumbled, there would be those who would pick up the pieces, and start things over the right way.
This nation needs to be taught a rude fucking lesson. No financial entity should be considered "too big to fail". Let it all implode, and start over.

[Enthusiast]

7. Let 'er slide!

Tough fucking shit!

[NeoConsSuck]

8. Nice try AP and other right wing rags

The DOW (and every other sector) slid yesterday on news from China. China's economy is roaring, but so is their inflation. So they are attempting to slow down. It had nothing to do with Obama.

Proof? Commodity stocks got absolutely hammered. If China is slowing down, commodities stocks will suffer.

But it makes much better news when we blame the black man in the White house.