Who knows why the markets act like they do? All the computers and geniuses of the world have been put to work trying to figure out what moves the market on a daily basis, and all have failed.
But it’s worth noting that on Tuesday, a day after the House voted “no” on the bailout, the markets went up almost 500 points. Yet, a day after the Senate voted in favor of the bailout, the markets tanked. Does that mean the market doesn’t like the bailout? Maybe. Or maybe it’s reacting to Europe, or cashing in on gains before a bigger drop.
The mood of the market is not good. And politicians do not have the power to make it good. That’s the takeaway.
Beltway powerhouses may think they can turn markets around, but they can’t. Confidence is not created inside the Beltway. It’s created in the heart of the American economy. And right now, the arteries feeding into that heart are clogged up by a lot of government fat. The sooner we clean out those arteries, the sooner that heart will start pumping healthy again.
As Shawn Askinosie, one of Scoreboard’s favorite businessmen, told us not long ago: The best thing the government can do to help right now is just get out of the way.
Obama: There Will be a Bailout
