President Barack Obama spooked the market Thursday

President Barack Obama spooked the market Thursday after asking Congress for limits on how large big banks can be and to end some of the risky trading large financial companies have used in recent quarters to boost profits.


In my opinion, the primary driving force for the whole bull market advance since March has been easy money provided by the US government and the Federal Reserve, primarily through large banks. Now, the administration is starting to take a hard line with banks.

I don’t know whether this attack of the banks is just political rhetoric or something that indicates a real policy change. Either way we have to be a little concerned that the primary conduit of easy money used to drive the bull market in stocks may be hampered.

I suspect it is more talk than reality. The stock market however does not care what I think. The Dow lost 213 points Thursday and has given up 336 points, or 3.1 percent, during the past two trading sessions. The losses have erased all the early gains seen in 2010.

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