Doomsday Fridays

Unless the intention is to destroy billions of dollars of the wealth and investment capital of this country, most government agencies have followed an unwritten law to avoid unloading bad news on the stock market during market hours. Typically, they release the bad news on a Friday evening, after market hours, so that cooler heads will prevail over the long weekend break in trading.

But, releasing bad news during trading can actually create a market crash. That's because many who buy stocks will submit, at the same time, a stop-loss order which is designed to automatically trigger a sell; should a stock reach a certain lower price. When bad news is released during trading, there is a knee-jerk reaction and many stocks reach various levels of stop-loss orders and automatic selling ensues. This, then, creates an environment of fear that draws even more sellers into the market because those traders, all of the sudden, see their particular stock tanking. The cycle repeats itself until the sellers, both automatic and manual, are exhausted and there are enough buyers to stabilize the stock price.

But this government has seen fit to unload on Goldman-Sachs twice; and, each time, it was on a Friday and during market hours. Two weeks ago last Friday, the Securities and Exchange Commission slapped Goldman-Sachs with a lawsuit; sending the market down more, finally, by 213 points. Yesterday, the same thing happened when it was learned that Obama's Justice Department had opened a criminal investigation against Goldman. Fortunately, the loss was only limited to about 160 points.

If Obama and his goons think this is the way to punish Wall Street by announcing adverse news during trading (I'm quite sure for political reasons!), then they are just stupid. In both cases a lot of average people got hurt in the process. The average Joe's 401k probably got hit hard. A lot of managed retirement funds also tanked because of those actions. People's individual savings in things like Mutual Funds had to be hurt too.

The campaigning Obama told Joe the Plumber that taxes on the rich were OK because we should "spread the wealth around". Then, Wednesday, in another anti-Capitalist utterance, Obama said "I do think at some point you've made enough money" -- when talking about Wall Street. Obviously, Mr. Obama doesn't understand the role that Wall Street has played in raising capital for start up companies to grow into major corporations like Apple, Microsoft, IBM, General Motors, GE, and so many more icons within the "world" of business. Corporations that have made this country the envy of most of the world.

Obama also doesn't understand that Wall Street acts as the agent to fund corporate expansion through bond trading and secondary stock offerings. That's why socialist countries fail. All too often great ideas are ignored so the bad, state-run companies are maintained without any competition. Socialist governments are incapable of providing targeted funding for the expansion of good companies and, at the same time, allow bad ones to go under or go out of existence. At the very same time, Wall Street helps connect the average individual in America with investment tools such as stocks, bonds, and funds that will better grow their savings over the measly 1 or 2% that any bank will give you. That's the real role of Wall Street. And, once again, Obama's socialism and lack of understanding of America is showing .