Market rallies 5% in one hour, CNN has explanation!

Stocks rallied Friday, with the Dow industrials bouncing as much as 550 points, after reports surfaced that President-elect Barack Obama will nominate New York Federal Bank president Timothy Geithner as his new Treasury Secretary

Oh really? So market rallies like crazy and it’s because Obama finally made a great selection, however when the market tanked 20% in the past few weeks it must have been because of our economy? See, folks – this is not only a perfect demonstration of how useless CNN is, but also how silly these explanations are. Markets do what they do and it has nothing to do with a Treasury Secretary selection or any other goofy explanation they generally come up with.

That brings me to another point. Obama ran on a platform of change you can believe in. What kind of change was he referring to? Change back? So far everyone he appointed worked in the Clinton administration! Emanuel, Holden, possibly Richardson and Hillary. Nice change.

I bet that most people will fondly remember how great the economy was under the Clinton administration and will probably think that picking Clinton folks is a good move.

What they do not remember or simply do not know:

1. Economy was coming out of a recession by end of Bush Sr’s term.
2. In 1994 Gingrich and Republicans took over the Congress for the first time
3. Under that congress; welfare reform, spending cuts and a massive capital gains tax cut occured.
4. Clinton was the first impeached president and the rest of the world laughed at us.
5. By the time Clinton left al-Qaeda has built up a big enough force to create 9/11.

Yeah, good times.

By the way, regarding the market. That price action is borderline criminal and was engineered by program buying. This looks like a head fake and should be all given back by next week. They never make it easy. Commodity rallies always end the same way.