PUBLIC STILL IN PANIC MODE: OBAMA'S SPEECH MET WITH BIG DOW DOWNER

CNN MONEY MARKETS:

Jan 20 4:59pm ET † Change %Change Level Dow -332.13 -4.01% 7,949.09 NASDAQ -88.47 -5.78% 1,440.86 S&P -44.90 -5.28% 805.22

SEE: ALL THREE MARKETS MOVED UP AND DOWN IN UNISON; THE PERCENTAGES DIFFER, BUT NOT THE MOVES: EACH MINUTE OF EACH HOUR MOVING UP'N DOWN IN UNISON.

THIS REVEALS THAT THE BUYING AND SELLING WASN'T COMPANY RELATED, IT WASN'T EVEN MARKET-DRIVEN - BUT WAS MACRO-ECONOMIC DRIVEN.

AND THE EMOTION POWERING THE MACRO-ECONOMIC SCENE IS PANIC.

• PANIC IS IRRATIONAL.

• TO CHANGE TO DIRECTION OF THE MARKETS, ALL OBAMA HAS TO DO IS CHANGE THE EMOTIONAL TENOR OF THE MARKETPLACE.

• TO DO THIS ALL HE HAS TO DO IS CONVINCE PEOPLE THAT THE CRISIS IS BEING MANAGED AND THAT WE WILL RECOVER.

• PEOPLE AND BUSINESSES WILL START SPENDING AND THE SELF-FULFILLING RECESSION PROPHECY WILL CHANGE INTO A RECOVERY PROPHECY.

• THE ONLY RATIONAL REASON OBAMA ISN'T LIKELY TO START MAKING THE PUBLIC MORE OPTIMISTIC IS THAT HE NEEDS THE PANIC TO REMAIN UNTIL HE PASSES HIS LIBERAL BOONDOGGLE, AKA THE "STIMULUS" PACKAGE.

SADLY, THIS BOONDOGGLE - LIKE FDR'S - WILL ONLY MAKE THINGS WORSE.

SADLY, IT'S STILL LIKELY TO PASS.

KNOWLEDGE OF THIS FACT IS WHY THE MARKETS TANKED TODAY.

SIGH.