Or so say the equities markets; I stayed away from anything broadcasting news of the corona…er, inaugura…er, coronation. How bad did the markets take it? Let’s review some selected lowlights from Bloomberg’s story:
– The Dow Jones Industrial Average plunged 4%, the worst percentage drop on Inauguration Day in the history of the average.
– The S&P 500, off to its worst start of a year ever (11% over 12 trading days), plunged 5.3%.
– The S&P 500 Financials Index is at a near-14-year low, closing at its lowest level since March 1995, with all 81 companies lower at the close.
– One professor who saw the meltdown coming says that the US banking system is “effectively insolvent”, with capital of $1.4 trillion and possible losses of $3.6 trillion.
I wonder what will happen when (I no longer believe “if” applies) the Treasuries markets are no longer able to absorb all the debt being printed up and proposed to be printed up.
So basically you believe the days numbers are a direct result of Obama and how people on Wall street feel about him and his policies?
Let’s see; Obama and the Dems want to nationalize banks and write off all the bad debt without relaxing the requirement that the financial industry hand out the subprime mortgages that comprise much of that bad debt. What do you suppose the investors, especially in the financial industry, are going to do on the day that the “inevitable” becomes, well, inevitable?
Obama and the Dems want to nationalize banks
Excuse me?? When did that happen?