Global Stocks Tumble on Obama Bank Plans

[TomCADem]

Source: NY Times

NEW YORK (Reuters) - Commodity prices tumbled and global stocks posted their worst week in months on Friday as investors turned to safer assets after U.S. President Barack Obama's move to curb risk-taking by banks sparked widespread unease.

Oil slid under $75 a barrel as nearly all commodity prices were pressured by Obama's proposals on Thursday to limit banks' trading activities, which have boosted their presence heavily in commodities.

U.S. stocks fell more than 2 percent in the worst week since March for the Dow, and since October for the Nasdaq and S&P 500. The slide erased all gains for stocks in 2010.

The CBOE Market Volatility Index <.VIX>, known as Wall Street's fear gauge, rose 55.6 percent since Wednesday in its biggest three-day jump in almost three years.



Read more: http://www.nytimes.com/reuters/2010/01/22/business/business-uk-markets-global.html

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Here is the conundrum that Democrats face compared to Republicans. Republicans can cast themselves as populists by complaining about bailouts, gaining votes, even as they attempt to stop any efforts to regulate banks. However, when President Obama proposes such regulations, the DOW falls, and President Obama is cast as a proponent of Big Government.

You really can't win. If you increase financial regulations, the DOW falls, and the media attacks you. If you don't, the DOW soars, and the media attacks you.

[BeatleBoot]

1. Time To Buy!

:rofl:

[msongs]

2. actually stock dive occurred day after Massachusetts senate election - a Brown crash? nt

[depakid]

3. It's impressive how some people buy into propaganda hook, line and sinker

and then repeat it for ostensibly their own purposes.

Wow.

[alittlelark]

4. That is one casino I will never re-enter....

[Turborama]

7. Likewise! n/t

[Turbineguy]

5. After having risen

thanks to Bush.

:sarcasm:

[Grand Taurean]

6. If only that were the case.

I will wait to see if Obama means what he says on this.

[BumRushDaShow]

8. Overdue "market correction".

as the pundits of pedantry are wont to bloviate when such happens under their watch... For months, they have been wringing hands about how quickly the market had rebounded from its March 2009 lows (essentially rising over 4000 points) and how this sudden steep upswing couldn't last.

So now this standard talking financial talking point doesn't apply? :eyes:

[4dsc]

9. They are framing this as an Obama failure

and nothing could be further from the truth. Its amazing that banks got up into this mess are not somehow the friend of the people in this economic recovery..

[BunkerHill24]

10. Yep, it's our fault after we gave them billions bail-out...go figure! nt

[Po_d Mainiac]

11. OP should read "House of Cards" exhibits fragility....

The pimps that have blown this bubble are sitting back and watching the fools that were "on the sidelines" getting hosed.

Quarterly reports have sucked rocks all year. Profits up on down earnings mean, we're selling off and not restocking. "One time write-offs" are severance packages for laid off workers.

It's just now dawning on the fools that bought into this market that Corporate America is not poised "lean and mean" for the rebound, they are hunkering down.

The only "pump priming" is stimulus money, and that can't go on forever.

Real-estate has to get down to affordable levels
Banks need to mark there portfolios to market
People need to get debt down to reasonable levels

America needs to produce those products needed for every day living..stuff like shoes, toasters, pens, computers, dog food.
There will not be a jobless recovery. Keynesian theory only works if we actually produce domestically.
:rant: :rant:

[Amonester]

13. Exactly.

Thousands upon thousands of self-proclaimed (Casino-)traders tossing pieces of printed paper and talking to each other on their cells all day, week after week, never produce anything for real.

They just blow up thin air, that's all they do.

All the while the suckers who keep buying stocks "because everybody else does it" R about to get screwd over (again).

Repeal NAFTA.

[ShockediSay]

12. Maybe it's a reflection that we just went Fascist with 5 Scotus Justices

But of course the corporate/media/Fascists paint this as Obama's fault.

PS with a corporate Fascist election system there can be no broad based
consumer driven economy.

Look what they did to Mussolini. Burlusconi only has just begun to taste
the wrath of an anti Fascist backlash.

[SoapBox]

14. But stocks of Community Banks were up!

And then there was Mr. Jim "Asshat" Cramer of CNBC predicting that if Brown won in MA, that the market would go up, up, up...driving your 401K into the blue!

Uhhhh...Sorry Mr. Asshat but the market tumbled the next day...and the tumble continued.

...don't suppose those big ass companies that control the markets, let the markets fall, to make themselves look the victim?

I'm just say'n!

[AlphaCentauri]

15. A subliminal message to Obama

to not mess with them otherwise they will hurt the economy they have the power to do it so.

[scentopine]

16. scotus ruling means CEOs will finance campaigns instead of

research and development. I guess they figure they'll continue to outsource to unregulated labor markets in India and China and pour profits into political campaigns.

Now when you buy stock in a company you are helping to elect the next senator.

Un fucking believable.

[JDPriestly]

17. The DOW is falling because the tighter bank regulations are going

to put a stop to the kinds of lies, the fraud that have permitted it to get so high when there is no industry and there are no jobs to justify a high DOW.

The DOW is high because of excessive speculation. Bank controls would force investors to invest in real companies, real economic activity. That's the point.

The DOW will decline until the investors start putting their money in really businesses that produce real jobs, and then working people will have money to spend and start buying things again and the DOW will go up. Until then, it shouldn't go up.

[barb162]

18. Obama needs to go ahead with the plans

Screw the stock market on this, which wants no regulation and only wants bailouts when it gets in trouble. Fuck em.

[eridani]

19. That is absolutely as irrelevant as its previous rise

The market has no connection to the real economy anymore.

[aquart]

20. Makes me happy. They believe he means it.

If only I did.