ThinkProgress today mocked Karl Rove's recent claims that the stock market is tanking due to Obama's delay in naming his economic team.
Though some economic analysts believe it would be helpful for Obama to name his econ team, it is laughable for Rove to blame the market's problems on Obama. Indeed, the market is much more likely reacting to yesterday's "grim economic data," which included "a 16-year high in weekly unemployment claims and the failure of Congress to reach a deal to help U.S. automakers."
Rove says the market is "trying to look four months, six months, a year in advance." That may be so, but anyone hedging their bets is probably much more concerned about the economic outlook released by the Fed on Wednesday — warning "that a recession believed already to be underway could last until mid-2009 or later" — than who Obama picks to head the Treasury Department.
But is Karl onto something? Today the market rallied with the Dow jumping 500 points
and, at least according to CNN, a good portion of that rally can be tied to Obama's pick of New York Federal Reserve President Timothy Geithner as his new Treasury Secretary. Could Rove actually be right? Nah...