Stocks Sliding Again
There’s no rally in the stock market to commemorate the victory of Scott Brown in Massachusetts. Between Obama’s newly found tough rhetoric against “too big to fail” banks and questions about whether or not Bernanke can muster enough votes to be confirmed, investors are feeling a bit shaky about the future value of American equities.
In three days, almost 600 points have vanished from the Dow – nearly a 5% drop. Of course, a lot of this is just the natural result of continued deleveraging despite federal attempts to inflate housing and stock markets with access to cheap and freshly minted money.
As the Congress reveals itself to be increasingly paralyzed and more states fall into budget crises of their own, expect stock markets to stumble once again.