Today's stock market loss of over 500 points, reversing Tuesday's 500+ point gain, has led to calls for action by various agencies of the government. Enough!
Let the markets sort themselves out. That's what they do best, when left alone. There is too much "what will the Fed do now?" This attitude forces politicians into action, just when they should remain silent.
Politicians don't know, any more than anyone else, why markets go up or down. There isn't any real news in the stock market since the slide began to accelerate last Thursday. We already knew (before last Thursday): 1) Europe was a basket case; 2) The US has a debt implosion; 3) GDP growth in the US was virtually non-existent 4)the President hasn't got a clue. This we all knew well before the market drifted below the 12,000 mark. The only new piece of news was the S&P downgrade. But, who did that surprise? (Other than Geithner, of course, who is surprised by everything).
The politicians should keep their hands off. We don't need more policy. We don't need calming statements. We don't need the ECB to do something. Let markets do their thing and keep the politicians on the sidelines. Haven't they done enough?