The stock market was dropping quickly, down more than 900 points for a bit, and market reports were citing Greece’s financial troubles. The White House briefing was in full swing.
Tales from the Trail
President Barack Obama is wearing many hats these days — commander in chief, head of state, father — so what about stock broker?
The new president, who has spent the first weeks of his administration working on proposals to boost the economy, lifted eyebrows and, at least briefly, stocks on Tuesday when he suggested that battered shares were a potentially a good investment at low prices they are currently touching.
Speaking in the Oval Office with visiting British Prime Minister Gordon Brown, Obama said it was natural that markets would be suffering from bad economic news.
But then he weighed in with this observation:
“What you’re now seeing is — is profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you’ve got a long-term perspective on it.”
Sound like cheerleading at all?
Stocks inched upward in response to his words, but his spokesman, Robert Gibbs, played down the comments later, saying they were in line with Obama’s previous statements on the economy.
Tell us what you think. Is the president encouraging Americans to buy stocks? And is that good advice?
For more Reuters political news, click here.
When Treasury Secretary Timothy Geithner made his long-awaited speech on Tuesday to unveil the administration’s bank rescue plan, the stock market tanked. Traders said the nearly five percent drop was caused by a lack of specifics in Geithner’s announcement that the government would spend up to $2 trillion to mop up bad bank assets and revive lending.
Israel’s military operations in Gaza continue to dominate front pages of major newspapers and morning talk shows. Wall Street is looking for a positive start as oil and gold prices ease back from the price spikes that followed the onset of the Israeli strikes against Hamas.
WASHINGTON – Israeli air attacks in Gaza dominate morning talk shows and front pages of major U.S. newspapers. The attacks pushed up oil prices by more than $3 a barrel to over $40. Gold prices also moved higher. Nevertheless, U.S. stock index futures pointed to a higher open on Wall Street in what is expected to be a light trading.
Major indexes dropped to their lowest level since 2003 yesterday and U.S. stock futures are pointing to another plunge today as investors worry about the fate of U.S. carmakers and the spectre of a prolonged economic downturn.
Just how bad is it? Well, here’s another sign of the impending apocalypse: the Labor Department reported at 8:30 a.m. EST that jobless claims are at their highest level in 16 years.