A question about the relationship between Obama's financial policies and the stock market ....

[Stinky The Clown]

.... could the market makers be driving the market down to either:

a) discredit Obama ..... or ......

b) create bigger buying bargains before the market recovers strongly later in this year?

It seems counter intuitive that the market goes down every time Obama or his team come out with some financial policy or another. (Geithner's speech and today's job bill signing.)

[Veritas_et_Aequitas]

1. I think it's just blind panic.

Investors don't get exactly what they want or somehow get spooked, and the order to sell goes in.

[HowHasItComeToThis]

4. END THE SHORT SELLING

GUARANTEE THAT THE SHORT SELLERS ARE AT WAR WITH AMERICA

[T Wolf]

2. PLaying the market is like betting on a rigged roulette wheel. It really bears no relationship

to anything authentic in the economy EXCEPT the manipulation by those at the top for their own benefit.

Looking to the DOW for indications of success/failure of any policy is useless.

[MadHound]

3. The markets haven't been tied to either the real world economy, or what's currently happening

For some time. For instance, last month the markets were either posting modest gains or remaining steady while tens of thousands lost their jobs. That's but one example.

I imagine that what the markets are reacting to today is the financial meltdown in Japan and Asia, not the bill signing by Obama. Geithner deserved to watch the market tank when he rolled out his bank bailout, it was short on details and long on more of the same old shit.

[Stinky The Clown]

6. Last week at least made sense. The market LOVES layoffs

[dkf]

5. The market has no clarity on Geithner's bank stress test

which is spooking everyone as it could put a bunch of banks in the explicitly insolvent category, which would wipe out shareholders. Why would anyone hold a bank stock when we have no idea which ones are toxic?

Also, certain European countries look shaky as they may not have the ability to bail out their banks.

Its our crappy mortgages that we sold which are bringing everyone down. I'm surprised they aren't more upset at us. Just think if they insisted we make good on everything because we sold them a bill of goods.

[sandnsea]

7. It's Eastern Europe

Panic that they're all going to go bankrupt. Today has nothing to do with our direct economy.

[Peacetrain]

9. That is the place that scares me most.. parts of Europe.

That old chestnut about when America sneezes the world catches a cold.. I think it is the opposite.. when Europe sneezes, we get pneumonia

[HereSince1628]

8. Or are out of work people forcing banks to liqudate assets to meet withdrawl demands?

Half a million people just dropped out of work. I suspect they, or family members who have stepped up to help them, are going to be drawing down savings. Overall I'd guess that will be near a billion a month, maybe more.

Even if people aren't just robbing their retirements, the banks holding their money in savings and checking need to liquidate assets to be able to meet the cash demands of the withdrawls. That sort of thing might produce spurts of selling in anticipation of ends of months as banks anticipate spikes in withdrawls as months end.

[sandnsea]

10. Interesting point

The stock value of our local banks have dropped 75% in the last year. I don't think that is widely known. They are perceived to be doing well because they didn't participate in any of this mortgage selling. Not really true. And with more people laid off, they will need to cash out whatever savings or investments they might have left.

[zagging]

11. Slight relationship if any

The world's money supply has failed. It has very little to do with Obama's policy. They money changers can't control the landslide any longer and it's a free for all.

[Oregone]

12. "before the market recovers strongly later in this year" LOL

That isn't going to happen.

If anything, they may be using his policies as an excuse to take profits and get out, but they would of done the same regardless. We are in the shit now.