Monday, December 1, 2008

Wall Street Optimistic About Obama

Our old friend Rush Limbaugh, two days after the election, proclaimed that "the Obama recession is in full swing." Parroting time-honored GOP talking points, he claimed that Wall Street was reacting to Obama's plans for increased taxes on rich folks by selling their assets before the Dems had a chance to gouge them.

This past week's action on Wall Street have greatly refuted the idea that stockholders are scared of Obama. On Friday, November 21st, Obama announced that New York Fed chair Timothy Geithner would be his pick to be Treasury Secretary, which, to remind you, has become an absurdly powerful position lately. The Dow responded to Geithner's nomination, which NBC News reported at 2:59pm Friday, by skyrocketing 500 points in the hour before the stock market closed. Take a look at that last link. It's obvious that Wall Street loved Obama's choice.

But maybe this was a one-time fluke. Obama has been pressing his luck by holding daily press conferences the three days before Thanksgiving. The Dow has gone up each of those days, plus this past Friday. It should go without saying that a 5 day winning streak on the Dow, in this economy, is nothing short of remarkable. The last time the Dow Jones Industrial Average went up this much, percentage-wise, five days in a row was 75 years ago.

Screw the "one President at a time" line that Obama's been spouting. Time to take over, Barry!

UPDATE: Today, the Dow went down 680 points. Obama, instead of holding another economics press conference, decided to announce his national security team today, including Hillary as his Secretary of State (more on this later). It's official; he's not allowed to talk about anything other than the economy.

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