Market drops after Obama's speech.

[kentuck]

The President, speaking of the new "Volcker rule", prohibits banks from gambling with taxpayer money as in the past. Somebody is listening.

(edited to reflect DUers comments)

[azmouse]

1. It was down over 130 points before he spoke.

[tridim]

2. It was down before his speech too.

[kentuck]

6. Last numbers I saw before the speech was down 17 points.

Probably a temporary drop?

[Patsy Stone]

7. Nope

It's been down by triple digits most of the morning. Perhaps that was NASDAQ or the S&P you were looking at?

[kentuck]

11. Maybe?

My mistake.

[ddeclue]

3. It has been all day.. not immediately after as in cause and effect.

[still_one]

4. and to eliminate proprietary trading. Now lets see the banks to start a campaign against it

Also, do you think Congress will actually do there job finally?

[ddeclue]

8. I'm sure they'll find a loop hole way to do it by creating some theoretically independent subsidiary

[paulsby]

22. i have a friend who does prop trading

it's a pretty lucrative game

[TornadoTN]

26. Well, SCOTUS made it really easy for them to do this

How soon will the ads start popping up, I wonder?

[malaise]

5. Well it dropped over 100 after Brown won

contrary to Cramer's prediction. Please watch Jon Stewart from last night.

[notesdev]

9. It was down a lot yesterday too

They know the Bailout Nation jig is up.

If you weren't aware, bailouts are the reason it didn't crash already. I knew this was coming, thought it would happen back in October/November, but I didn't realize just how far Geithner and Bernanke were willing to sell us out in order to prop up gold-plated bankers' lifestyles.

[femrap]

15. The Fed's

'Extend and Pretend' is OVER.

Buy Puts!

[paulsby]

23. should have bought them BEFORE today's downturn

implied volatility has expanded immensely today.

i (and people in general) make money in the market by buying cheap and selling expensive.

buying puts on the evening of a huge selloff gets you puts, at a premium.

fwiw, i've been adding to a short for a few days. i'd be buying puts if the volatility contracts. right now, if you want to get short, something like DXD would be a better value imo

[Trillo]

10. I noticed it going down after the Massachusetts election. n/t

Many noted that the market went up when the Senate's HCR bill was finalized.

If that bill was a corporate giveaway, in addition to whatever else it was, then losing that 1 Senate vote changes investors' future expectations $$$.

[PATRICK]

12. If that is the case

That really damns the bill as the biggest wish of the industry even above no bill at all(with HC chaos coming on the horizon).

[timeforpeace]

13. Do we have Brown's victory to thank for this?

[Winterblues]

14. The more Republicans make headway in the political realm the lower the Stock Market

Historically the Stock Market has done much much better under the Democrats..There is a reason for this.....When Democrats are in Power the economy does much better and that means the Market does as well. Democrats try to money money into the people's hands where it can be spent and Republicans try and put money into the Corporations( at least the CEOs) and the ultra-wealthy where it gets pidgeon-holed.

[Better Today]

16. Excellent! I feel better already. If the markets are dropping then he

may FINALLY be doing something for the majority of the nation, otherwise known as us little people.

[femrap]

17. I remember Volcker from

the '80's. He did a great job. He took interest rates on Money Market accounts to 15-18%. No bubbles for Volcker.

I miss John Galbraith though.

Greed is gonna get one big slap in the face....just look at how many of the little people it has slapped. Now Karma is gonna go after the big boyz.

[Mira]

18. It had been down all morning and was at 173 when he started speaking, minus that is

Now, half hour afterwards, it's -194.

[still_one]

21. It was down because they were anticipating what the President would say

It is down more because they don't like it

Therefore it must be good

I do trust Volker, and that is who Obama is listening to on this

[cbdo2007]

19. The market doesn't react to the President's comments.

[still_one]

20. Sure it does. Goldman reported stellar earnings, and it is down 7 points, NOT because

they are selling on the news of their earnings, but because they see less revenue from this regulation

Banks are following suit also

[HughMoran]

24. Good

Let the market adjust to the new reality - it won't make much difference in the market beyond this slight correction, but we'll gain some control over the ass-hole banks.

[alfredo]

25. Fuck em. They didn't care about us, why should we care about them. They

were willing to throw the world into a deep depression, and now they are whining that Obama won't let them do it anymore.