Wall Street Casts Its Vote: 'The Market Is Going Down'

November 7, 2012

With a wary eye on Europe's continuing debt drama, investors also reacted to warnings, first from Fitch, then Moody's that the rating agencies stand ready to cut the U.S. triple A credit rating if responsible fiscal actions are not taken. Standard and Poor's already took action on the rating in 2011.

"The market is going down. The market does not want another four years of Obama. It does not want these tax hikes on a fragile economy," said Peter Boockvar, Miller Tabak strategist. "We have an economy that's barely staying above recession. Europe's problems are deepening. Now we have the prospect of higher taxes."

Boockvar pointed out that the Treasury's auction of $24 billion in 10-year notes at 1 pm Wednesday was surprisingly weak. The yield was 1.675 percent, and the bid to cover, at 2.59, was below the 12-month average.

"I can only speculate. We know a dovish Fed will be with us for another four years, with all the money printing and dollar debasement it brings. It was a squishy auction," he said.

The stock market selloff, with the Dow down more than 2 percent, was the second worst post election sell off since the late 1940s. The worst was in 2008, when Obama was first elected and the financial crisis was in full swing. That day, the Dow declined 5 percent.

FINISH AT CNBC

 

 


blog comments powered by Disqus

Jen Psaki: 'Let's hope the Kremlin will live by the promise of hashtag'

April 24, 2014  11:27 PM

Dear @statedeptspox, I'll make this simple for you: hashtags do not equal sound foreign policy.— Phineas Fahrquar (@irishspy) April 25, 2014 As Twitchy reported, the State Department engaged in some Twitter diplomacy last month, coining the hashtag #UnitedForUkraine” and tweeting photos of people holding signs, like this: To echo @BarackObama today-proud to stand #UnitedForUkraine World […]

Lizz Winstead taken in by nonexistent Rep. Steven Smith

April 24, 2014  10:35 PM

How could she not respond?

'Good luck with that': Oversight Committee asks Eric Holder for communications between IRS, DOJ

April 24, 2014  07:26 PM

Rep. Darrell Issa and the GOP House Committee on Oversight and Government Reform are asking Attorney General Eric Holder to produce all communications and documentation between the Justice Department and IRS official Lois Lerner, dating back to January 2009. The letter asks AG Holder to produce all docs/communications between/among Lois Lerner & employees of #DOJ from Jan '09 […]

'Blatant lies': Valerie Jarrett seconds claim that Eric Holder 'defends the rights of all Americans'

April 24, 2014  06:46 PM

Oh please.

'Open season on women': Mississippi bans abortions after 20 weeks

April 24, 2014  06:14 PM

Mississippi Gov. Phil Bryant on Wednesday signed legislation banning abortions beyond  20 weeks gestation. The bill takes effect July 1. “Medical research shows that an unborn child can feel pain by not later than 20 weeks gestation, and research also shows that the risk of death and complications from an abortion increases significantly as a pregnancy […]

FSM Archives

More in MUST READS ( 1 OF 25 ARTICLES )