DC Happy, Wall Street Not So Much
It's ebullient here. Was just walking through Georgetown which is crowded with happy revelers but if you've looked at the markets you know the Dow is off about 4 percent at 3:30 and even if it were to recover, it's shows how much deep despair there is about the banking system despite the cappucino, Red Bull and amphetamines that have been applied to the system. A few weeks ago, Bank of America, with its takeover of Merrill Lynch looked like one of the few stable survivors, along with JP Morgan Chase, of this era. Now the Charlotte-based behemoth is in free fall, down nearly 25 percent this afternoon.
All of this strengthens Obama's already very strong hand with Congress. From the western steps of the Capitol, the 535 members saw the power of that crowd spread across the mall. Churlish Republicans may be able to dis Obama, but it's hard to think of any Democrat who is going to screw with him at this point. Power waxes and wanes but the combination of DC-based adulation and Wall Street woes, gives Obama an incredible boost going into his first day at the office.
Josh
Matt
Eric
Brian
The fact Wall St. doesn't like him is the highest of endorsements for him. I hope.
January 20, 2009 3:38 PM | Reply | Permalink
Exactly. It's time for them to stop being drunk, and to start tightening their belts with actual government oversight AND regulations.
January 20, 2009 3:39 PM | Reply | Permalink
Yup, and time for them to realize (or get out) that these regulations will allow us to become to be more prosperous.
January 20, 2009 3:57 PM | Reply | Permalink
I'm so tired of Wall Street and their drunken irresponsibility in the past eight years. Maybe it should be time to nationalize the banks if they continue to stop lending to small businesses and Americans?
January 20, 2009 3:38 PM | Reply | Permalink
It's been time to nationalize the banks, for months.
January 20, 2009 5:01 PM | Reply | Permalink
Who will be the first to blame it on Obama, Limbaugh or Hannity?
Toads.
January 20, 2009 3:47 PM | Reply | Permalink
The Obama Recession, as they've already called it.
January 20, 2009 4:03 PM | Reply | Permalink
It's been over 4 hours and we're still in recession? What gives? Oh, well...as long as my pony is waiting for me when I get home tonight.
January 20, 2009 4:31 PM | Reply | Permalink
I'm holding out for a unicorn, myself.
January 20, 2009 4:37 PM | Reply | Permalink
Jim Geraghty has seemingly beaten them to it.
January 20, 2009 4:48 PM | Reply | Permalink
Wall St. reacts to anything. Wall St. reacts to nothing. Trying to assign some kind of cause and effect to this is a fool's errand.
January 20, 2009 4:01 PM | Reply | Permalink
Democrats may not want to "dis" Obama, but that doesn't mean they can't undermine him. You can be sure that the finance industry still holds enormous power in Congress. They can do plenty of damage without anyone telling the public.
January 20, 2009 5:03 PM | Reply | Permalink
Seriously, Matt? Aren't you supposed to be some sort of educated person?
Need I suggest that you read "A Random Walk Down Wall Street" so you don't come in here sounding like an imbecile? Assigning meaning to the statistical noise of day trading is how people lose all their money.
Repeat after me: "markets rise and fall, in a random pattern, in a general direction".
Josh, I can't help but feel that your wonderful blog has been infected with Villageritis.
January 20, 2009 5:07 PM | Reply | Permalink
I had to work today, but trekked over to the New York Stock Exchange to watch the Inauguration on teleprompter outside with 1000s of my favorite New Yorkers. Dodging the jumping brokers was tricky, but it was a beautiful moment :)
I'm taking what's left in my 401(k) and investing in Obamarabilia and Kleenex.
January 20, 2009 5:19 PM | Reply | Permalink
Matt thinks he's a hawk. Let him invade and occupy a few banks.
January 20, 2009 6:51 PM | Reply | Permalink
You're joking, but that's actually kinda brilliant.
We'll call it, "The Surge II: Wallstreet Boogaloo".
January 20, 2009 7:10 PM | Reply | Permalink
Yeah, and I don't believe the Geneva Convention applies to CEO's or investment bankers.
January 20, 2009 7:37 PM | Reply | Permalink
Because they're not human. Not that we shouldn't treat animals humanely, of course.
January 20, 2009 10:38 PM | Reply | Permalink
Since I can't post this elsewhere, in regards to Josh's comments amout Howard Kurt's piece in the Wapo: I would be much more comfortable with Joe Klein joining TPM than I am with Matt (Valerie Plame) Cooper coming on board!
January 20, 2009 8:54 PM | Reply | Permalink
The market has feelings. Yep! Journamalism!
January 21, 2009 10:18 AM | Reply | Permalink