Monday, November 24, 2008

Rush Limbaugh and the Stock Market: This Way Lies Madness

Yes, I actually heard Rush Limbaugh commenting this morning about how the stock market went down from up 320 on the Dow to up 200 on the Dow, as Obama talked about his economic "plan".

No. Limbuagh is not stupid. See my previous entries today. He is merely engaging in tactical "jabs" at Obama.

Doesn't matter. This obsession with the stock market "reaction" to events is not hlepful--counterproductive in the end, as well as obscuring the contribution that an irrational stock market is making to our economic troubles.

The stock market is broken, and Rush Limbaugh is not making any cotribution to public understanding on that.

As the title states, trying to figure out "reasons" for present stock market moves only leads to madness. This blog has given you the correct reasons for most recent, violent stock market swings (computer program trading), and it can only lead to madness to try to figure out other reasons for stock market daily moves. Those other reasons don't really exist.

P.S. The Dow quickly recovered much of its drop. All of these violent drops and rises are mainly fiction, and it is, indeed, madness to try to figure out economic/rational reasons for the moves.

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