Why Is The DOW Finishing Up Following Obama's Depressing Statement On The Economy

[Median Democrat]

I listened to Obama's discussion of current economic statistics, and his statement that things will likely get worse before they get better. It sounded pretty depressing for me, and Obama was not even trying to embellish things. He was not saying civilization will end or that our entire economic system was in peril, just that things are going to suck in the near term. Yet, the DOW finishes up close to 400 points.

In contrast, Bush would either give very positive news or extremely dire news. In other words, either things were going swell under Bush or the world was about to end (bailout). Obama just gave a general things are going to be painful in the near term speech.

So, I just find it odd that the DOW has been going up when Obama has not exactly been spreading good news about the economy.

[Mass]

1. They like the idea that adults are going to be leading?

[Midlodemocrat]

4. And people who can form complete sentences.

[Demobrat]

2. It's in response to the Citicorp bailout.

At least that's what's being reported.

[shaniqua6392]

20. Except that it went up almost 500 points on Friday when he named the next Treasury Secretary.

That was before the Citi bailout. I think he is giving them back the confidence they have been lacking.

[yardwork]

3. Maybe people feel like a reasonable, rational person is in charge now.

Obama reassures me when he talks no matter what he says. Most people realize that sometimes the news is not good. But it is always reassuring to feel that a sane person is in charge instead of that lunatic.

[FrenchieCat]

5. Sounds like Obama is telling the truth.....

something that has been lacking in the market for a long time.

This indicates Change, and the market is giving him points for such, considering that he was not responsible for the current state of affairs.

In other words, the market is rewarding honesty, cause at this point, even the investors are tired and sick of the bullshit. Guess they believe that they may be in for a firmer foundation, which will benefit them in a long run.

[Median Democrat]

15. Obama Sounded Almost Sounded Like Paul Tsongas

All you needed for him to say was, "I'm not Santa Claus." Bear with me, I am not saying it is bad, but just a bit different from prior years. In similar circumstances, Bush was telling me that if I shopped, things would be okay.

[mwei924]

6. Because he actually makes sense.

[demnan]

7. The market is like the rest of us

so damn anxious to be rid of the Bush administration and so relieved that Obama is coming in.

[ananda]

8. One word: Citigroup.

And no, it makes no sense to me because
the government just gave Citi 300 billion
dollars with no strings, and now Citi
is proceeding to set us jobs and business
outside the USA.

No loans in the future, and no American jobs.

The economy is insane. Nothing makes any
sense.

[Median Democrat]

12. Exactly, Isn't Citi News Bad?

Citigroup is on the verge of going under such that it needs a bailout. When similar news came out before regarding a massive rescue, markets have often gone down. I would think that the Citi news would underscore just how screwed up and depressing credit markets are. I mean I finding it unnerving that Citi was on the verge of going under, yet markets are going up.

Overall, it just sounds weird to have a President saying things are going to suck for the near term, but we will be okay in the long term. Normally, Bush would be selling another tax cut to rich people at the end of such a speech.

[John Q. Citizen]

9. The markets are glad to know his economic team picks. Uncertainty is a drag on markets.

[Mid_FL_voter]

10. Because Obama's team and his plans are coming into focus

That's one aspect of the upward movement, I'd guess. The markets don't like uncertainty.

[Fabio]

11. Stock pricing is a reflection on estimates of future earnings. Cont'd

This means most stocks have already been discounted for future pain.


So basically, what happened in the last few days to boost stock prices?

- Basic understanding of the President-Elects financial policy and introduction of players eases fear.
- Citi and other financial institutions are granted more $, alleviating some concerns about credit availability and basic solvency of our financial system.

Put another way, the stock market could rebound tremendously in anticipation of improved future conditions, but the economy could still suck on main street as that pricing is only a consensus reflection on the future, not a statement on today.

[WinkyDink]

13. Because the smart and honest people are going to be in charge.

[RagAss]

14. People bet on honesty, that's why.

[TygrBright]

16. Reality: What a concept! n/t

[Undercurrent]

17. .

Truth spoken by a capable adult backed by a strong, serious team.

Powerful stuff.

[WI_DEM]

18. because they recognize a leader?

[Vinca]

19. They realize the next POTUS is not only sane, but intelligent, too. nt

[Median Democrat]

21. The Next POTUS Can Also Be Quite A Buzzkill - Ah Well, The Truth Is What It Is

[rucky]

22. The value of honesty has gone up!

[scheming daemons]

23. None of what Obama said is news to Wall St..... but they are positive about his team

They have a President who is telling them the truth.

...and he's assembled a team to address the problems that Wall Street ALREADY sees.


They have no confidence in Bush because they KNOW his rosy-scenarios are lies.



Obama inspires confidence.


"We have a problem. It sucks. But we're going to fix it."

For you... that's BAD news.

For me.... it inspires great confidence.