“Don’t tell me words don’t matter,” Obama thundered. And, he’s right
The Obama plan to overhaul the banking industry by restricting big banks’ riskiest — and most profitable — trading activities has sent the Dow down more than 200 points today. The average has now sustained a two-day loss of more than 300 points.
Down 213.27 while I am writing this
Bank stocks are leading the decline — and it’s easy to see why. The strong earnings reported today by Goldman Sachs and by other big banks earlier this week relied heavily on profits made from so-called “proprietary trading,†precisely the kind of activity the President wants to restrict.
Investors, who hate uncertainty, are now left to wonder about the future profit potential of big banks if they are not allowed to buy and sell derivatives, asset-backed securities and the “structured finance†products that collapsed the financial system and have now enriched the banks once again.
Obama forgets that there are real people, average Dick and Jane’s of all ages, who are affected when he opens his yapper.
This also helped fuel a dip in the dollar. Good job, Captain Neophyte!
