Loading ...Tuesday was a broad base sell off day where both stocks and commodities were down. In the early hours, stocks slipped in reaction to a below-consensus consumer confidence report for September. The premarket gains were unable to overcome pessimism in the labor market.
The financial sector was beaten like a red headed step child for a second consecutive day with JP Morgan Chase receiving most of the bruising. JPM fell 2.2% after The New York Times exposed that the Department of Housing and Urban Development wanted a $20 billion settlement from their participation in the housing collapse. This added to Monday’s reports, which said prosecutors in California are set to announce charges against JPMorgan Chase. We hope that Jamie Dimon has purchased one of those million dollar bunkers for Billionaires.
The big news however (at least for the next 5 and a half days) is the incompetence in Washington. Instead of attempting to solve the perceived problem (the debt ceiling fiasco) or the real problem (distribution of wealth), the politicians are reading children’s book. What is it with those guys and children’s book? What they should be reading is Les Misérables by Victor Hugo. “If I speak, I am condemned. If I stay silent, I am damned!”
I for one would like to give Bernanke credit for preventing another major sell off. If Ben Big Bucks did not continue with QE, I’ll fairly certain that the algos would be pulverizing the market. The thought of bank shutdowns with government shutdowns can only result in total chaos.
Today the market is opening lower. While the Special Olympics continue in Washington, real traders will be cheering for their favorite mentally crippled athletes! The machines however is another story, they will remain selling the market.
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