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Pisani: Why Stocks Are Falling

Earnings season not panning out like it was supposed to...so far. Traders were long going into earnings, under the theory that most would beat expectations handily.

That happened, but stocks haven't gone up. You can blame China worries, the Obama announcement, Bernanke uncertainty, as well as relatively high valuations. Once you had the first two, traders bailed.

S&P 500 still less than 3 percent off its 15-month high, hit this Tuesday.

Whitney remarks. Traders passing around bits and pieces of Meredith Whitney's comments on the Obama bank plan this morning:

"Our bet: this goes through and it will not be pretty for banks or consumers...."

"...the medium term impact of the proposal will be a reduction of liquidity in not only the corporate market but also in the consumer market."

Why the consumer market? Because of the operational problems of trying to reduce the market share concentration of the big banks. Many sold their mortgage and credit operations to the big guys years ago, along with the technology that went along with it. She notes two-thirds of the mortgage and credit card products are controlled by the top four banks.

Bloomberg vents. Mike Bloomberg, mayor of New York City, has a counter-proposal for Congressional suggestions that Wall Street bonuses be put in escrow.

Speaking of Congress, he said: "Maybe we should hold back their salaries for a decade or so and see whether the laws they pass work out."

(See the story at: http://www.businessinsider.com/henry-blodget-bloomberg-blasts-obamas-war-on-wall-street-says-congress-salaries-should-be-held-in-escrow-for-10-years-until-we-see-how-their-laws-worked-2010-1)

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CNBC Data Pages:

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Top Financials — Where They Stand Today:

Citigroup

Goldman Sachs

Morgan Stanley

Bank of America

JPMorgan Chase

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