Indecision Reigns

As I remarked earlier in the week, the market can handle good news, it can handle bad news, but it hates indecision and not knowing the rules.  We have seen this play out on two fronts this week.  First, the healthcare bill has completely stalled as the Democrats don’t have enough votes or enough balls to ram it through.  So the rules that investors were expecting healthcare companies to play by are now up in the air.  Will they write another bill, will they not write another bill, what will be in it, blah blah blah.  Traders took the healthcare stocks out back and shot them this week just to be safe.  Oh, and by the way, wasn’t it Jim Cramer who said a Brown win would be a healthcare rally.  Douchebag.  One of the first lessons my mentor taught me was that the market hates not knowing the rules.

We’ve also got Obama out chastising the banks for prop trading, he doesn’t want them trading for their own accounts.  I’m not going into this right now, I’ll save it for another time, I generally agree with the fact that the banks need to be broken up, but we need to have their separate entities be able to trade with a low cost of funding for market liquidity.  The market is obviously scared and confused as to what type of legislation will be passes to this end, and investors are shooting first and asking questions later.  Just look at the regionals vs the big boys and smaller brokerages.

Last but not least, Ben Bernanke is having a hard time getting reconfirmed.  The market doesn’t like to be told to wait on things of this sort, especially when that man has been the single most important reason for the asset reflation game being played right now.

All I have to say is this, Mr. Obama, if you want a healthy market, clear this crap up, make a decision one way or another on all three issues, just don’t putz around like you have on just about every other issue and piece of legislation trying to get everyone to like you, have some balls and pass some legislation, be a leader.

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