TOM SCHRADER, MANAGING DIRECTOR, U.S. EQUITY TRADING, STIFEL NICOLAUS CAPITAL MARKETS, BALTIMORE:
"I think the budget is probably already built into the market, considering how much Obama told us he has to spend. Wall Street and investors will think the budget is too big, but I think it will be pared down by April.
"The deficit is huge, but it's a necessary evil, and I think it's already built into the market.
"There's a fear and a certainty that taxes will have to go up in order for Obama to do everything he wants to do -- including halve the deficit by the end of his first term. But taxes are also already built into the market, and that could be why we've been seeing the levels we've been at in the market."
GEOFFREY YU, CURRENCY STRATEGIST, UBS, LONDON:
"These numbers are to be expected -- 12.3 percent of GDP is pretty hefty -- but I think we're assuming that the stimulus is expected to be front-loaded. Continued...
Friday, February 27, 2009
ANALYSTS VIEW - Market reaction to Obama budget report