Diamonds and Dogs
henry david thoreauHenry David Thoreau once remarked "That government is best which governs least." Once again, the US government took an active role in the markets this week, with very disappointing results. On the heels of a democratic defeat in Massachusetts, which basically defeated the president's hope for business unfriendly healthcare reform, the president chided Wall Street big shots. In surprising fashion, Obama took a shot at the big banks and offered dramatic changes to how Wall Street works. I am not here to defend the giant banking firms, their processes, or their huge compensation. But the surprise pronouncements by the White House shook the financial markets and created a down-draft which we hadn't seen since March of last year. In three days, stocks lost close to 5% as the old saying goes, Wall Street fears the unknown and right now, we have no idea what will come out of the leader of the free world's mouth next. For traders, we broke
through the 50 day moving average and are trading around the 200 day, so there may be a bounce in the offering this coming week.