Once again economist David Rosenberg puts the chairs back in place. “Why save the banks, only to punish them?”, he asks. And once again he provides an insightful answer.
“For some reason, the bonuses on Wall Street were deemed to be “obscene” but no such mention was made of Fannie and Freddie, and no mention of the “excessive risks” and “binge of irresponsibility” being taken on by the FHA in its quest to promote homeownership with virtually no down-payment at taxpayer expense.”
(Article in English, link to report in English)
“If these folks want a fight, it’s a fight I’m ready to have.” Eight years ago that would have been George Bush the son talking about terrorists.
“But today (yesterday actually) it is President Obama talking about the banks,” chief economist at Gluskin Sheff, David Rosenberg, points out.
“For some reason, the bonuses on Wall Street were deemed to be “obscene” but no such mention was made of Fannie and Freddie, and no mention of the “excessive risks” and “binge of irresponsibility” being taken on by the FHA in its quest to promote homeownership with virtually no down-payment at taxpayer expense … wait for those losses to mount. No wonder a Bloomberg poll just found that 77% of U.S. investors polled see the President as being “anti-business,” he writes in Fridays edition of “Breakfast With Dave”.
But he also make some other important observations:
“Indeed, yesterday’s selloff was “blamed” on President Obama’s stepped up attack on the banking sector. All 10 S&P sectors were down and the worst performer was basic materials, so China’s recent policy tightening moves were at play as well.”
As usual Mr. Rosenberg’s market commentaries are well worth a read.
U.S. market Snap Shots
The big question among investors is (of course) if this downturn marks the beginning of a downward trend, or not.
Looking at the charts for S&P’s 500 over the last few weeks, it seems like a downward trend started about two weeks ago. But nothing is certain in this market!
Nasdaq Composite (RSI and OBV):
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