Posted by Davy Bui on July 11th, 2008 in Market Commentary, Politics

Interesting how the small cap stocks as represented by the Reuters 2000 is holding up:

As of 12:10 am EST:

Dow = -1.8%

Wilshire = -1.6%

S&P500 = -1.7%

NASDAQ = -1.5%

Rueters2000 = 1.0%

As an aside, I’m listening to Bloomberg and they cut to the world’s greatest witless wonder, GW Bush. It was amazing to listen to the POTUS barely address the Fannie/Freddie situation as it is unfolding and instead, try to tie the economic situation to Democrats not allowing off-shore drilling. I kid you not. Even after 8 years, I find it incredible that such a person could ever have been elected president twice (or once but I don’t want to get into that).

Former SEC chair, Arthur Levitt, was on afterward and commented on Bush’s ineptitude in commenting on the Fannie/Freddie matter. He also stated that clear as day, the GSE shareholders should expect to get wiped out and the bailout is inevitable.

And as a parting aside, that sector rotation play that’s been making the rounds in the financial media doesn’t look like such a smart play now, does it?