Market Intervention in an Obama Administration

Discussion in 'Economics' started by drsteph, Jan 20, 2009.

  1. OK, here's a question for discussion:

    With the changeover between administrations, will the President's working Financial Group (PPT) maintain current effectiveness?

    Can market distortions which have been ascribed to said intervention be expected to continue? Or are we entering a new more hands-off period? Do relationships exist between current players and the new administration which will allow continuity, or have those relationships died with the current administration?

    Note: 1. Kashikari's new tone of demanding accounting of bank TARP funds for loans (thinly veiled, IMO)
    2. Complication of Geitner's tax brouhaha impeding functioning of this working group?
    3. Does #2 imply that Paulson will need to stay on for a few days until confirmation of Geitner (or withdrawl and new appointment), which would imply business as usual.

    Lots of questions, discounting the main one (does PPT exist, is it relevant, etc...). I suspect status quo but see room for chaos. Any thoughts?
  2. S&P's down 5% at the close and I'm getting that unpleasant feeling in my stomach again. I believe I have answered my own question posed above. So much for the obama rally.

    Full disclosure: Long SPY puts, SDS
  3. I really dislike market analogies but I have one, (who doesn't lol). If the market was a poker game, we have to identify the players. New game. Who is left, and the psychology of the remaining players towards the new and vice - versa.

    Imo, the PPT is probably a committee. No effect.

    The Fed, ehh, they use subtle nuances to prepare the market in advance. No change here.

    Paulson, GS background, what more could you ask for? He may have laid the ground work but no one would be as nimbel to recognize the ship is off course. This one is a biggee.

    New President? The wild card is: don't tell me - show me.