What the heck is going on with the stock market?!?
The DOWs down 2.5% (almost 300 pts) as we speak, though it’s coming back a bit (I said a half-hour ago this was an overcorrection—shoulda put in a call option!).
I get it—kind of. The economy’s lousy, the political system is too, the European debt crisis is dragging on if not deepening (I’m doing my part to help by eating a Greek yogurt as we speak), and the debt deal apparently hasn’t pleased anyone.
But all of this was known, except for the latter—and the threat of default is behind us now, at least for awhile. Maybe investors are reading stuff like this (a proposal to make the “dollar of debt ceiling for a dollar of cuts” the new standard) and getting nervous that political dysfunction is now enshrined in the system.
Equity markets didn’t like the jobless claims report, because, hey: who knew the job market was stalled??!
Sorry–don’t mean to get so dyspeptic. It’s not unusual for the market to be manically depressive and psychotraumatically challenged at a time like this. But we really need some good news. And that may not happen until we get some good policy, a whole lot better than what’s been coming out of this town of late.
Update: Um…did I say “call”…I meant “put”–DJIA falling again, down over 400 pts, 2:30.
DJIA, circa 12:45pm (Source: Bloomberg)