Thread: Stock traders do their own swearing-in

By Janet Whitman, Financial PostJanuary 20, 2009

NEW YORK -- Big donations from financial heavyweights helped Barack Obama enjoy the most lavish inauguration bash in U.S. history. But they’ve got little to celebrate on Wall Street.

As an excited crowd of nearly two million gathered Tuesday on Washington D.C.’s National Mall to see Mr. Obama sworn in as the 44th president of the United States, stocks plummeted amid worries about the economy and especially the health of the banking industry.

The Dow Jones Industrial Average sank 332 points to 7,949 -- the closely watched index’s first close below 8,000 since Nov. 20.

The Toronto Stock Exchange’s main stock index fell 336 points to 8504, as a dramatic interest-rate cut Tuesday by the Canadian government wasn’t enough to offset investor jitters about the struggling economy.

"[Mr. Obama] said in his speech that we have chosen hope over fear and I think we are hopeful," said Hugh Johnson, a stock-market strategist with Johnson Illington Advisors. "But then there’s reality and the reality is that the economy is in awful shape and the economic outlook is dismal: layoffs keep growing, earnings numbers are bad and banks are going to continue to have bigger losses."

As he spoke to the throng in Washington and millions more across the United States and around the globe, Mr. Obama was quick to address the woes facing the economy.

"Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age," he said.

He added that America will meet the challenges facing the economy, but not "easily or in a short span."

Later, he hinted at the likelihood of increased regulation for Wall Street, whose years of reckless lending have been blamed for contributing to the economy’s slump into a recession.

"This crisis has reminded us that without a watchful eye, the market can spin out of control -- and that a nation cannot prosper long when it favors only the prosperous," he said.

People with Wall Street ties were the top donators to Mr. Obama’s swearing-in ceremony, according to the Center for Responsive Politics, a Washington non-profit group that tracks money and politics.

Hedge-fund manager George Soros and 117 other wealthy individuals contributed more than US$3.6-million, or an average of US$30,534 each, to the inauguration. At a total of around US$45-million, President Obama’s inauguration celebration tops the previous record of US$42-million set in 2005 by outgoing U.S. President George Bush.

"That people on Wall Street have donated is not necessarily an indication of any loyalty to him," said Anthony Sabino, a professor of law and business at St. John’s University in New York. "It’s a dance that’s played in every election cycle. People want to have their bases covered. But certainly Wall Street and the American business community in general are looking forward to having a new president in charge."

Mr. Obama, who has no background in business and finance, hasn’t waited until assuming office to tackle the crisis facing the economy and the banking sector.

Working with his experienced economic advisors, the former Illinois senator is close to winning passage of US$825-billion in new spending and tax cuts aimed at stimulating the economy and has called on U.S. Congress to release the second half of the US$700-billion Wall Street rescue fund. Why? The first one didn't work. Fools throw good money after bad.

"He and his administration face very substantial challenges," said Mr. Johnson of Johnson Illington Advisors. "If anybody doubts that just look at the performance of stocks [Tuesday]. It reflects investor views of what lies ahead and it’s not rosy."

© Copyright (c) National Post

http://www.calgaryherald.com/business/f ... story.html

"Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age," he said.

And $150 MILLION for the inauguration wasn't showing greed and irresponsibilty???? I almost quit reading right there, but I had to see how our illustrious leader justifies THAT!


"Hedge-fund manager George Soros and 117 other wealthy individuals contributed more than US$3.6-million, or an average of US$30,534 each, to the inauguration. At a total of around US$45-million, President Obama’s inauguration celebration tops the previous record of US$42-million set in 2005 by outgoing U.S. President George Bush." Oh yea, they know they will get THEIR bailout.

I didn't even bother turning on my TV yesterday cause I knew I would have thrown something right at it. Probably won't turn it on today either since I know all the MSM will be trying to prove what a great leader he's going to be.