The US stock market and also all other global markets have crashed by anything between 4% to 10% in the last three trading sessions, thanks to the new proposal by Obama to cut down the banking risks in US.
The new restrictions are expected to cut down the risk taking ability of deposit taking banks in US which in turn can cut down the overall venture capital and hedging trades.
The flow of cheap money from US into other markets are also expected to come down in the coming months, as there are signs of early interest rate hikes by US. Also the loss of the long held democratic seat by Obama to the rival Republicans at the beginning of this week only added to the downturn.
Obama bank restriction plan spooks the market