US Stocks fell sharply Thursday, led by financials, as President Obama rattled the market with plans to crack down on Wall Street risk taking.
The Dow dropped about 200 points, or 2 percent. Coupled with the prior session’s loss, this is on track to be the biggest two-day decline since August.
President Obama proposed new limits on the size and trading practices of big banks, saying he wanted to prevent a return to the “old practices” that led to the financial meltdown.
“While the financial system is far stronger today than it was one year ago, it is still operating under the exact same rules that led to its near collapse,” Obama said in a statement.
(Source: CNBC)
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3 Responses
The President just loves bashing the private sector, doesn’t he?
While he is right in some way being that the banks were the ones to bring down the economy (actually according to Obama it was Bush), this isn’t the way to do it as banks will retaliate and cause US the people to suffer. Seems like Obama didn’t learn his lesson from the Massachusetts election going on with his liberal agenda. Will he learn a lesson like Clinton did in ’94 and veer to the center then he has some chance (although it will be harder for a liberal Chicagoian to become as moderate as an Arkansas native), otherwise we will see CHANGE in ’12.
or perhaps the evidence that the “recovery” is merely “smoke and mirrors” powered by Ben’s magic printing press, such as rising unemployment, continued high foreclosures and bankruptcies and a fiscal crisis in Europe that might be more serious than anything we had here, not to mention a federal deficit so large that in any other country it would lead to immediate collapse
Reducing payment to executives will leave more money for dividends, which will hardly hurt shareholder value, which is what drives stocks
It is very optimistic to blame today’s stock decline on a squabble over bank compensation