The DOW has now dipped into the high 7,000s.
I have to admit, although its not a surprise, in a way its a surprise.
The next few days will be telling. Wall Street is not getting off on a good foot with Obama. Allegedly they did not like the fact that no new details were laid out in his inaugural speech. Does this make sense to anyone? Its an inaugural speech not a corporate recap for investors. I always like it when people find error in all the wrong places.
Reuters: US STOCKS-Banks, profit worry sink Wall St on Inauguration Day
"Stocks are getting crushed because of the never-ending tragedy that has fallen upon the banking sector," said Tom Sowanick, chief investment officer of Clearbrook Financial LLC in Princeton, New Jersey.
3 comments:
They can't blame O yet. The banking sector put it's own ass into the meat grinder by NOT doing it's job, which is loaning $$ wisely. Instead, many of these so called smart guys or is that smart asses and I've met more then a few of them bet the house on such crap as sub-prime mortgages and the house of cards built on top of them. Any idiot could have done better. Whatever, blaming O though rings hollow because we were all witnesses to this madness.
Obama is not the blame, especially for today with the DOW tanking.
The banks are back in the spotlight for failings and losses and bigtime in Europe as well. Basically Obama will be doling out some medicine in the next few months and we will see how it sticks. He's banking on running up the deficit. Lots of big deal economists are betting that this is the correct approach. Now its a matter of how specific and how carefully the money is invested to create some grease. He has to be careful otherwise the money is going to go down the hole into these same guys' pockets.
The banks are having a party. They're no different then any of the other BIG Corps.
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