The stock market plunged today during and after the inauguration of Barrack Obama as the 44th President of the US. The DOW was down more than 300 points or 4% and the NASDAQ a crushing 88 points or 6%. Optimism surrounding Obama’s presidency was left to the liberal blogs and fanatics throwing shoes at the White House.
The worry in the markets? Primarily bank troubles and a concern that there will be massive federal spending ahead, adding to deficits that are already skyrocketing. Bank stocks led the collapse when State Street crumbled after it updated its risk factors and acknowledged the company is holding billions in unrealized after tax losses.
Citibank has continued to decline and is now below $3.00 a share. The company slashed its dividend to a measly one cent from 10 cents.
“The honeymoon is already over for the new administration with the way these stocks were beaten down,” said Edward Yardeni, an independent market analyst. “This is not a vote of confidence.”