Stock market rejects stimulus bill and TARP2.

There is no single better indicator of future economic projections than the stock market. Traditionally the market always signaled what direction the economy is heading by a good six to nine months. The market is talking to us and if we listen, the following has been said since late 2008.

  1. The market did not like Barack Obama. Ever since the reality of him becoming president set in, the market shaved off a tremendous amount of value. Obviously September and October are traditionally bad months and that contributed to the sell-off, but if there was one mandate made in November, it was done by investors and traders.
  2. The market continued to dislike Barack Obama with the worst post-election week sell-off in American history.
  3. The market did not like the TARP. Since TARP most of the companies involved and the precarious $BKX (Banking index) are now lower than they were when TARP was announced.
  4. The market does not like the stimulus bill nor does it like TARP2. Today the market shaved off close to 5% on all major indices.

S&P down 42.74 closing at 827.16.

Regardless of what your opinions on the stimulus package may be, America's financial markets are feeling the ever growing pressure of the government's probing hand. This means further damage 401K's and a continued decline in confidence both domestic and international. While the market has always been a buy the rumor-sell the news creature, it is impossible to ignore the precipitous declines since the emergence of Barack HuSedGovtIsBad Obama.

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