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08 December 2008

Stocks Get Boost From Obama's Comments

President - Elect Obama pledge to boost public spending on infrastructure. Obama's speech is having a positive effect on the stock market with gains reaching highs not seen for about 3 weeks. The hope of stock investors, of course, is that the spending will filter down and help the bottom line of thousands of U.S. companies.

Oil and oil related companies as well as copper prices have been early benefactors of Obama's comments with prices sharply higher today.

President Bush has agreed to a troop pull out plan as he tries to salvage his legacy. Bush in a recent interview admitted that he wished he had better intelligence before making the decision to invade Iraq. Too bad he can't have do-overs, we all wish he had better intelligence too.

Dow Chemical is joining other large Dow Jones Corporations and will be cutting 5,000 jobs and closing 20 plants as the economy continues to worsen despite all the promises and current Congressional work to boost it.

Barney Frank thinks there is a deal between the White House and the Automakers. It's not quite what the Auto CEO's had in mind, but it has to be better than nothing. The government is willing to loan the automakers $15 billion, but may re-consider the $25 billion. They were asking for $34 billion.

Obama has accused the auto CEO's of taking a "head in the sand" approach to long festering problems. He believes that the CEO's should lose their jobs. Sen. Dodd argees with Obama and called for GM CEO Wagner to move on. Stands to reason that the current management of the automakers couldn't keep the companies from losing billions and keep them competitive with other automakers, what makes us think they will do it now?

2 comments:

  1. If you think "stocks" like our new Communist Dictator. U R Nuts.

    ReplyDelete
  2. Ultimately, I think stocks like the hope that something will be done to fix the economy and they trade on the perception that things will get better.

    Followers of the stock market know that one day someone in an influential position says something to give everyone hope and the market reacts. The next day hope disappears and the market reacts to that.

    ReplyDelete