Thursday, March 5, 2009

Economist's Notebook: Enough With the Stock Market Already

I had the misfortune to stumble onto a little CNN the other day and all the talk was all about how "Wall Street" was assessing the Obama performance. I was shocked. The administration even had to defend itself against the stock market performance. Since when is the stock market the indicator of good governance? The stock market skyrocketed during a time of perhaps the worst corporate governance in the history of US capitalism. I know that Wall Street would love a plan that would just hand the banks trillions of US dollars with no stings attached. Imagine how the Dow would respond to that plan.

Wall Street whiners about how the government is not falling over themselves to bail out the banks should be ignored. These fools just don't get it. The reckoning is here, banks are insolvent, and there will be blood - like it or not.

In fact, negative reaction from Wall Street to Obama's plans suggests to me that Obama is not simply kowtowing to the banks and that gives me comfort. Of course, I am years away from retirement...

UPADTE: Jon Stewart beat me to it [HT: Calculated Risk]

No comments: