Thread: Can somebody please explain to me why?

Every time Pres. Obama or one of his minions starts talking about the economy (e.g. jobs, banks, Wall Street), the stock market takes a dive? I would like to retire someday, which among other things would open up my position for someone else, but if this keeps up I will be working until I keel over and die.

Business has no faith in his abilities as President nor do they trust his administration to do right by business, big, small, or medium .

Well, first of all, I think it is pretty clear that he is perceived as less permissive (or friendly, if you want to go that route) towards bgig business. This is particularly true and evident at themoment where he is discussing stricter rules on some HUGE market drivers, such as banks (look at the last two days.)

I will remind you all that for the last two to three years, there was nearly a 100% correlation of the markets being lower at the end of Pres. Bush's speeches than at the beginning. Don't know why, as he surely was a business friendly president.

Originally Posted by smokelaw1

I will remind you all that for the last two to three years, there was nearly a 100% correlation of the markets being lower at the end of Pres. Bush's speeches than at the beginning. Don't know why, as he surely was a business friendly president.

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.

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?

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.

I saw a chart on this someplace, got it in an e-mail as a joke IIRC something like Wall Street asks: "Would You Please !!!! just Shut up, Mr President"

Originally Posted by JMS

Business has no faith in his abilities as President nor do they trust his administration to do right by business, big, small, or medium .

Nope. Business is all about making money and they fear he will curtail that ability.

Originally Posted by CableDawg

I, too will have to work until I keel over and die. Not looking forward to it, either. My hopes of hunting, fishing, shooting guns, visiting brothels and gardening in retirement wither away daily.

Originally Posted by fccexpert

I would like to retire someday, which among other things would open up my position for someone else, but if this keeps up I will be working until I keel over and die.

Sorry folks: Even if you were lucky enough to save sufficient scratch for a nice retirement you'd still have to work for health insurance.