Thread: Can somebody please explain to me why?

Originally Posted by fccexpert

You may be right. I guess this just goes to show that "I'm from the government and I'm here to help." is truely one on the greatest lies in history.

Maybe. We were never able to really figure out why that was happening. I'd love to hear from one of the "experts."

As to why it's going on with the president now...I think it is pretty clear that his recent policy announcements are NOT being well taken by the financial community. Not only are they heavily reflected inteh indeces, they provide much of the financing to the market that they are also a part of, so it's a bit of a double, hit, if I understand the efects correctly (or even close!)

For what i've read he maybe just doesn't want to be that much of a underling or a puppet dog of the big business than some of his predecessors were?

^^ You need to find a better quality of read.

Another factor is that the markets are paper thin at the moment, and are only just starting to recover from the recession. The dealers are looking for signs in the market for what is going to be happening over the next few months to years, and comments like those do tend to encourage people to bail out..! It gives a signal for increased regulation and control, something the markets have always been skittish about.

You can see it in the money markets as well. Someone at the BoE makes a comment like "if inflation stays high we may have put rates up" (not really a sign of anything, just a quote from the basic book of monetary policy) and suddenly the markets are all over the place, selling off and rallying with no real pattern at all.

Its jumpy dealers who've had two years of crappy markets looking for signs from above about the future. If theres even a whiff of the future being bad, down go all the indices.

well, that is true, the stock markets have very little to do with the present, it's mostly about the future. and a lot of people, are pretty bad at understanding the present, and even worse at predicting the future. including the trading crowds.
those who are smart know what 'obama or any of his minions' will say well before he actually does and are converting this into money when the crowd acts on the public announcements.