Larry Kudlow, "Obama Inauguration Speech Received one hell of a Bronx Cheer from Wall Street!"

KUDLOW & COMPANY | 1/20/2009 4:40PM | LARRY KUDLOW

[Capt. Tom]

Roubini says that the banks start with a capital of $1.4 trillion. But he figures that the losses are going to be more than all the money the banks have. Here is a quote from the same article.

"Losses in the US financial system may reach $3.6 trillion (£2.6 trillion) before the credit crisis is over, suggesting the country's banks are "effectively insolvent", according to the man who predicted the current economic meltdown."

So if he is correct or even close to being correct there is no way the banks can make up the difference. - Tom

[A Strict Constructionist]

“I can’t wait for the media to turn on him “

I don’t believe that it will happen, they have too much to loose with their anti-Constitution agenda. They are fellow travelers.

[Torquay]

you think!

[Torquay]

you think!

[rb22982]

If they raise taxes immediately, God help us. We will see S&P @ 400 if they do by the end of the year (maybe lower).

[sonic109]

Please Republicans stand against the socialist agenda of “the one”.
Republicans? I though they went the way of the woolly mammoth.

[Arthur McGowan]

My brother was laid off today. A company with 100 employees—laid off fifteen of them. Hope and Change!

And it WAS because of the economy. They said they will give him great references.

I feel sorry for kids finishing college this year, just entering the labor market, whose whole lives will be affected by the crummy economy and/or destruction of the United States, which is Hussein’s real goal.

[dila813]

I am sorry to hear that.

I know I am on the edge myself, considering lots of fall back positions if needed.

It is nasty out there, and the only thing you can do is grab hold of what ever you see.

I notice allot of people out of work, there are still jobs where people aren’t applying. May require moving though.

I fear if my job is gone, I will be moving rather quickly.

What is really going on “No Hope, Only Change”

[Jack Hammer]

Alas, you are absolutely correct. America, and the MSM, have drunk the Kool-Aid, and there’s no turning back.

[lewislynn]

I agree. It took years to make this mess. The banks started down today long before the speech.

UH, it wasn't the speech, it was the man. You can apologize for him if you want to but buying and selling stocks is speculative. They are bought for future growth not sold on what's happened in the past.

[Moonman62]

They are bought for future growth not sold on what's happened in the past.

So when stocks cratered W's first two and a half years in office, that was his fault. Thanks.

[misterrob]

Okay, so the stock markets are off 45% or so in the past 15 months. Real Estate blew up starting back at the end of 2005 and has been going down since. The financial sector, which was using RE backed loans and assets to drive growth is drowning in bad debt from loans made to people who had no businesses getting them. They also over leveraged themselves to astronomical levels that pretty much ensured their downfall. The global banking system is melting down, the shares of our banks are falling through the floor due to lack of confidence in the asset values on their books and for some reason or another people who point out reality are apologizing for Obama?

Right.........