Wednesday, October 02, 2013

What's Obama Buying?

It looks as if our President is trying to scare Wall Street.  He's telling them it's time to panic, just a little, over the debt ceiling negotiations.
Nothing complicated here. In order to strengthen his hand in negotiations, the president’s decided to try to kickstart a hopefully not-too-damaging market sell-off over the debt ceiling. The more the Dow drops tomorrow, the more Boehner and other moderate Republicans will think twice about letting this process play out all the way up to the deadline on October 17th. And if the market doesn’t dive sharply enough — maybe “only” 200 or 300 points — he can always nudge it again next week with more dire rhetoric. It might take losing a thousand points or even two, but damn it, if that’s what it takes to teach these tea partiers not to scare the hell out of markets by behaving irresponsibly, then oh well.
Or, maybe he's overexposed in the futures market and he's looking to sell short. This looks like pure market manipulation to me, and if I were to try to manipulate markets, it would be against the law.  Of course, Hillary made a killing in the cattle market and no one seriously accused her of anything.

Maybe the Security and Exchange Commission should look into our President's market manipulation.  Oh, wait, they work for him, don't they?

1 comment:

Old NFO said...

That's what this WHOLE administration is about... Manipulation!!!