Wall Street Takes a Dump on President Obama's Big Day

Yesterday Wall Street welcomed the new administration the only way it knows how: by dropping stocks at a  record-setting rate…

The Dow Jones Industrial Average yesterday fell below 8,000, shedding 4 percent, its bleakest performance on any Inauguration Day since the index was started 124 years ago. Nasdaq and the Standard & Poor's 500-stock index both plunged more than 5 percent.

And (good morning, Mr. President!) it seems the government's plans to help banks may be contributing to the problem, as investors start to believe that federal intervention in the financial sector is inevitable and will cut their returns. So investors stop investing in the financial sector, the financial sector sinks deeper in the hole, and – lo and behold – the government intervenes.

It is the power of hope, except in reverse.

The government's actions stemmed the market's panic in the fall, but it did not succeed in stabilizing the industry.

Investors now appear to be stampeding again. Shares of Wells Fargo have lost roughly half their value since the start of the year. Bank of America is down 64 percent. J.P. Morgan Chase is down 43 percent. Citigroup is down 58 percent. Those are the four largest U.S. banks.

But… but… there were marching bands! And dancers! Beyonce! Pretty dresses! And President Obama electrified the world when he got out of his limo and walked part of the Inaugural parade route. Come on, you guys, he walked! On the street, almost like a normal person, for several blocks!

My god, doesn't that count for anything?