Video: Stock market has worst day in three months after Obama banks speech

Video: Stock market has worst day in three months after Obama banks speech

www.examiner.com

President Obama said Thursday that he would ask Congress for limits on how large a bank can become, and to put an end to the risky trades banks and financial companies use in an attempt to make profits.
President Obama also scolded Wall Street banks Thursday and called for limits on their size and investments. Immediately the stock market fell.

"We have to get this done," Obama said. "If these folks want a fight, it's a fight I'm ready to have."
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[edit on 1/23/2010 by semperfortis]

sorry this post was to come after the one below.

The Bethlehem Steel Corporation (1857–2003), based in Bethlehem, Pennsylvania, was once the second-largest steel producer in the United States, after Pittsburgh, Pennsylvania-based U.S. Steel. After a decline in the U.S. steel industry and management problems leading to the company's 2001 bankruptcy, the company was dissolved and the remaining assets sold to International Steel Group in 2003. In 2005, ISG merged with Mittal Steel, ending U.S. ownership of the assets of Bethlehem Steel.

Bethlehem Steel was also one of the largest shipbuilding companies in the world and one of the most powerful symbols of American industrial manufacturing leadership. Bethlehem Steel's demise is often cited as one of the most prominent examples of the U.S. economy's shift away from industrial manufacturing and its inability to compete with cheap foreign labor.

en.wikipedia.org...

The steel Industry (directly or indirectly) was eventually left uncompetitive with steel industries out side the US, resulting in the loss of thousands of jobs and the ruin of many small towns in America.
Can we expect a similar scenario with the financial institutions in America?


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[edit on 1/23/2010 by semperfortis]

mod edit, quote tags

[edit on Sat Jan 23 2010 by DontTreadOnMe]

JFK versus the Steel Trust

The US News and World Report opined that "the President's action point inevitably
to a federal dictatorship over business..." The press and the legions of dissatisfied business
people neglected that he appointed Republicans to the key positions of Treasury Secretary
and Federal Reserve Chairman. But in August of 1961 JFK was warned by his head
economic advisor, Walter Heller, that a steel strike or a sharp rise in steel prices or wages
would "upset the (economic) applecart all by itself." So, he sought to pressure both the steel
workers' union and steel industry leaders not to increase wages or prices by 2.5%. He believed
he had their agreement. On March 31, 1962, the union announced that thet it had agreed
to a new contract that would have provided less than a 2.5% increase in wages and benefits.
But on April 10th, the CEO of US Steel, Roger Blough appeared at the White House and
told JFK that his company was going to raise its prices on average about 3.5% in June.
JFK was furious at being double-crossed.

Within 24 hours Kennedy launched investigations by the FTC and Justice Department
into collusion and price rigging by the steel companies." To further show the steel industries
he meant business, JFK began to stop Pentagon contracts from going to the steel industry.
These actions frighted Wall Street.

Long before, this happened, savvy technicians who were watching the DJI-30 (which then
included US Steel) must have noticed the bearish head and shoulders pattern the DJI was
tracing out. They should have seen that the readings from our Tiger Internal strength indicators
were much weaker on the pattern's right shoulder in March. The "neckline", the pattern's key
support, 680, was broken on April 30th. But even before then, Tiger users would have turned
bearish, simply by recognizing the price pattern. In addition, TigerSoft's OBV Line and IPA Line
(not shown here) showed support breakdowns on April 3rd and April 11th. The timely Sell S17
signals warned of serious divergences between apprarent price action and internal strength.
Selling and selling short were clearly call for here.




As you can see from above, Wall Street soon swooned at JFK's attack on US Steel.
The DJI on April 10th was at 695. Bethlehem Steel soon announced similar price hikes.
On April 11th, JFK released a press statement:
"The simultaneous and identical actions of U.S. Steel and other
leading steel corporations, increasing steel prices by some six
dollars a ton, constitute a wholly unjustifiable and irresponsible
defiance of the public interest. In this serious hour in our nation's history,
when we are confronted with grave crises in Berlin and Southeast Asia,
when we are devoting our energies to economic recovery and stability,
when we are asking Reservists to leave their homes and families
for months on end and servicemen to risk their lives and asking
union members to hold down their wage requests; at a time when
restraint and sacrifice are being asked of every citizen, the
American people will find it hard, as I do, to accept a situation in
which a tiny handful of steel executives whose pursuit of private
power and profit exceeds their sense of public responsibility can

reply to post by murfdog


show such utter contempt for the interests of one hundred eighty-
five million Americans."
Soon FBI agents were at the homes and offices of stell company executives, seeking
information that would build a case for price-fixing. Two days later, Inland Steel and
Kaiser Steel announced that they would not be raising prices and Bethlehem Steel
reversed itself. On April 13th, US Steel rescinded its price hikes. Milton Friedman
said this was the action of a "police state" and the LA Times likened JFK to Mussolini.
Big business considered they had a natural right to setting the prices for their goods,
except, presumably in war-time. (See www.stocksandnews.com...)
www.tigersoft.com...

Letter JFK wrote to the steel mills to try ad put a freeze on prices.
www.presidency.ucsb.edu...

reply to post by murfdog

The steel Industry (directly or indirectly) was eventually left uncompetitive with steel industries out side the US, resulting in the loss of thousands of jobs and the ruin of many small towns in America.
Can we expect a similar scenario with the financial institutions in America?

I highly doubt that, only in America are people dumb enough to support the corrupt banking industry, it called the stock market.......

reply to post by murfdog


Can we expect a similar scenario with the financial institutions in America?

reply to post by murfdog


Obama is just frustrated and swinging wildly at capitalism.
He is just making it worse.

reply to post by Eurisko2012


Yes I agree.
I kind of screwed my post up. LOL. But what I’m trying to say is that Kennedy did similar things to the steel industry that Obama is doing to the banks in the first year of his presidency. This resulted in a decline in the stock market and it continued to slump until after his death. (Which could be another good conspiracy thread in it self). Now in his defense some of it was due to the Cubin missal crises but it started when he went after the steel industry.
Now when Obama goes after the banks can we expect a steady fall in the market again? Based on what the market has been doing for the past three days I would be willing to wager yes.

reply to post by murfdog


Based on how he ran during his first year I would say that this is just empty rhetoric. He is on a huge decline right now and is just trying to get the cameras back on him. This is just my opinion though.

Does Obama even matter anymore? He's been completely and wholly incompetent at the least and ridiculous corrupt at the most in his first year. With the Supreme Court's recent decision on campaign donations and the rapid attack on American freedoms, does Obama even have any power? Seems to me he's just a toothless front guy who'll do anything his handlers say. For Obama to be serious about what he's saying, it'd be a complete 180 from the way his administration has run. From cozying up to certain banks, to employing several dozen of the top bankers as his economic team, and over-seeing the biggest heist in American history. His actions don't match his words.

I cannot wait for 2012... for our next nightmare.

Anyone who is not asleep can see the result of no regulations on banks.

Banks almost completely collapsed the US economy through massive
speculation in derivatives.

Imagine football, baseball, and basketball without referees .
An apt metaphor for how banks operate today.

Unless you want to lose the national treasury to speculation again
there's going to have to be some regulations.

I'm not saying Obama has the right plan but at least he knows we need
a plan. Let's hear some discussion on creative plans to limit a banks
ability to gamble away the US National treasury again.

Screw the stock market=banks are manipulating it because they are a
bunch of greedy misers who are blinded by their own selfishness/

Intellectually engineer a plan to referee banks into helping the US
treasury rather than destroying it then giving themselves bonuses cuz they
failed and dumb politicians bought the line that they were
"Too big to fail". Goldman-sacks should have taken their 13 billion loss
instead of manipulating sell-out politicians into bailing out AIG just
because AIG owed them 13 billion.

reply to post by Electricneo


If Americans didn't spend 200% over their means consistently this would have never happened either. The human psychology is predictable in the marketplace (boom and bust) - it is predictable in many forms but one reference would be psychology relating Fibonacci sequences and how human minds process fear and greed as a whole.

Understanding financial markets, or just one instrument for that matter, is not something that is easily understood by most, there are many factors including randomness you have to take into consideration.

reply to post by Electricneo


I am very surprised that Obama bites the hand that feeds ! I really believed he was put in the function by the banks, but it looks like he actually plan to help the people. Or maybe I understood it all wrong?

note : maybe he already got what he wanted, now its time to give the impression he is a president for the people??

[edit on 23-1-2010 by Romanian]