Is Obama depressing the market?

[88Mariner]

http://www.usnews.com/blogs/capital-commerce/2008/10/7/after-the-bailout-is-obama-depressing-the-market.html

I think it would be an absolute cheap shot to blame the falling stock market on Wall Street's sudden realization that Barack Obama will very likely be the 44th president of the United States. But is fear of a potential Obama presidency playing any role at all in the weakness?

i'd love to hear Miro on dis.

[Miroslav]

Re: Is Obama depressing the market?

ha... I personally doubt that he is a very big factor. We should wish he was, because this whole mess would then be much easier to solve. think this crisis goes far beyond peoples' concern about who is elected people and is rooted in some fundamental aspects of our banking system.

Turns out that people don't really like to own pieces of paper supported by other pieces of paper, which are then collateralized by other pieces of paper, which are in turn supported by some dubious slice of hard asset with little visibility into the underlying risk, which are then sold and resold 100 times over. And that won't change regardless of whether a Democrat or a Republican is sitting in the big chair.

Neither of those will be able to carry out their campaign objectives anyways. Our fate is largely be in the hands of people we don't even know in governnment treasuries and central banks around the world. Let's hope they have some brains and can agree to act with some coordination.

[k3n3]

Re: Is Obama depressing the market?

Let's hope they have some brains and can agree to act with some coordination.

Do you think we'll see some new sort of global banking entity arise out of all this ???

http://www.bloomberg.com/apps/news?pid=20601087&sid=aP5mpMUORBWM

Oct. 10 (Bloomberg) -- Italian Prime Minister Silvio Berlusconi said political leaders are discussing the idea of closing the world's financial markets while they ``rewrite the rules of international finance.''

``The idea of suspending the markets for the time it takes to rewrite the rules is being discussed,'' Berlusconi said today after a Cabinet meeting in Naples, Italy. A solution to the financial crisis ``can't just be for one country, or even just for Europe, but global.''

The Dow Jones Industrial Average fell as much 8.1 percent in early trading and pared most of those losses after Berlusconi's remarks. The Dow was down 0.5 percent to 8540.52 at 10:10 in New York.

Group of Seven finance ministers and central bankers are meeting in Washington today, and will stay in town for the International Monetary Fund and World Bank meetings this weekend. European Union leaders may gather in Paris on Oct. 12, three days before a scheduled summit in Brussels, Berlusconi said today, while Group of Eight leaders may hold a meeting on the crisis ``in coming days,'' he said.

Berlusconi didn't give any details about what kind of rules leaders were looking to change, except to say that leaders are ``talking about a new Bretton Woods.''

The Bretton Woods Agreements were adopted to rebuild the international economic system after World War II in a hotel in Bretton Woods, New Hampshire. The aim of the agreements was to establish a monetary management system, initially by pegging currencies to gold. The IMF was set up later to help manage the international financial system.

[Miroslav]

Re: Is Obama depressing the market?

Do you think we'll see some new sort of global banking entity arise out of all this ???

It honestly wouldn't surprise me if that effectively ends up happening. This is no longer a US crisis, it is truly a global crisis. They have to find some way to meet and act in a coordinated way.

[thesightless]

Re: Is Obama depressing the market?

while historical data dictates the markets usually negatively to a democrat, i will confindently deny he is having this type of impact. a minor role, of course. he is a heads on favorite and the market doesnt like him. but at this level, its mass histeria, and sheer stupidity, with most blame falling on the worldwide public and media for stoking the fire that shouldnt be.