Posted by: mutantpoodle | March 6, 2009

Back in town…

I was up north and (obviously) not posting for the duration. Apparently, editors and reporters were maintaining their high standards even in my absence.

Witness this slop from Business Week:

…among investors, fairly or unfairly, there is griping that the new Obama Administration is at least partly to blame for the recent slide in stocks. Since Nov. 4, Election Day, the broad Standard & Poor’s 500-stock index is off about 25 percent, and since Jan. 20, when Obama took office, the “500” is down 15 percent.

It’s never easy to determine exactly why the stock market moves in a particular direction. Plenty of other factors have influenced stock prices since November. For example, the global economy has slowed further and the outlook for corporate profits has worsened….

Many investors hoped Obama could start to solve the stock market’s — and the economy’s — biggest problem: the credit crisis. “It was a false hope,” says Brian Reynolds, chief market strategist at WJB Capital Group, who believes there is “nothing the government can do to stop the crisis.”

Others are more hopeful the government can ease credit conditions, but say the Obama Administration has bungled the operation so far. A Feb. 10 presentation of a financial-sector relief plan by Geithner was widely criticized. Stocks fell almost 5 percent that day.

Geithner was a “particularly poor salesperson back on Feb. 10,” says Marc Chandler of Brown Brothers Harriman, who says he voted for Obama. “The Obama Administration has failed to get ahead of the curve.”

OK – so Wall Street is upset that a problem their leading lights created over a decade or so hasn’t been solved by the Obama administration in under 7 weeks?

They should be happy that Obama isn’t “ahead of the curve” – because that surely would have meant some form of the dreaded “N” word – nationalization. Most people think that some form of federally supervised reorganization is inevitable for what are almost certainly insolvent banks, but had Geithner said that a few weeks ago, I imagine Wall Street would have panicked more.

Oh, and while I am sensitive to the movement of the stock market, as I, too, have a 401k, here are the important numbers (c/o MSNBC):

Job Loss Graph

Unemployment Graph

[Screen captured – hence the annoying pop-up]

UPDATE: Of course, John Stewart beats me to it:

Vodpod videos no longer available.


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