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Originally Posted by Cannon Shell
The stock market is losing money rapidly despite the emergency measures that the new administration has taken. The tough guy act against banks may buy them some popularity among the common folk but the real money see it in an entirely different and negative light. One thing govt is really bad at doing an that is running business. Nationalizing banks means that they will running the financial sector. Who could possibly think that is good, hence the markets continuing plunge. The current administration may choose to ignore the market but they will eventually pay for that because the rest of us see what is happening. While they shouldnt and arent equipped to deal with it on a day to day basis the current trend should be more troubling to them then they outwardly appear to be.
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Obama has already made it clear that this is what is
not needed long term. This landslide started before Obama came to office. We were told by almost every reputable economist that emergency measures were needed MAINLY to keep money and credit moving. Told by Bush and Obama people.
We have also been told by conservative and liberal economists that certain "banks" (I dont know what to call some of these instituitions as the money they were lending and investing went way beyond what I see most local banks doing) cannot fail or we will see worse than what we are seeing NOW. We were told by Bush people that we WERE very close, very very close to having the financial system freeze, that we barely escaped disaster...
The stock market reacts both to what has happened, AND what it believes will happen. I am not an economics major, I never even had the class (was not required like it is now) but this seems clear to me:
When the stock market reacts to economic reports that must be built from what
has already has taken place it is using events that have already occurred as an indicator of the future. Partially anyways.