I typically refrain from commenting on politics as I’m politically agnostic and believe that the political environment typically has little impact on the financial markets. However, the stock market’s reaction to the administration has been simply uncanny. We’ve now seen the worst post-election stock market performance in history. As the cartoon above illustrates, the stock market has reacted very poorly to the administration’s attempts to deal with the current financial crisis.
There is a growing feeling, at least among the financial community, that the administration is “winging it” and may be in over their heads. The last thing I want to do is endorse partisan politics but Karl Rove’s editorial in today’s Wall Street Journal speaks to these concerns well. So far, the administration has failed to answer this type of criticism with confident, decisive and detailed action and communication and until they do, the economy and financial markets will continue to suffer from a crisis of confidence.
Sources:
Editorial Cartoon
Chip Bok
February 18, 2009
Is the Administration Winging It?
Karl Rove
The Wall Street Journal
February 18, 2009