Plunger Alert: DOW

Plungers are hard at work again pumping your stock market with the same high gas that got blown out yesterday. So you say you have confidence in them to bring your retirement account back to even, so do I after all they took us here from 15,000. Remember that now consists of 30 stocks that can be easily manipulated. They want you to think that your economically happy, healthy and wise even as you're standing in the soup lines because the DOW is up 500 points.

Today's silly market junk is this wingnut nonsense:

On the political front the polls have turned very swiftly against Sen. McCain, and we are certain that that is one reason why share prices plunged so easily yesterday, and why the US market led the way down even as markets around the world fell.

That is a classic example of selective perception. Its one of the reasons why market participants and many of the idiots known as economists should steer far far away from politics.

As we wrote back in January 2008:

Markets are not skittish because the incumbent party is in trouble - that’s getting it ass-backwards. When the ruling party is in election trouble, its because the future discounting mechanism of markets is incorporating a slowing economy into its pricing. Markets may be imperfect and subject to the excesses of crowd behavior, but they eventually get the big picture correct. The current market malaise reflects a recognition what is occurring in the macro-environment.

With the markets up 350 today, we will see that sort of thing turn very quiet very quickly. I guess we all Misunderestimated the Dow again.