Why is the Market Down?

The sudden uncertainty about Bernanke's reconfirmation, of course. A WSJ blog headlines "Warren Buffett Predicts Chaos If Bernanke Is Not Re-Confirmed". Buffett:

BUFFETT: If I could vote twice, I would. He should be, I mean, he did a magnificent job over this period. Now, everybody can do it somewhat better. We could sit here and armchair quarterback him, but when I look back at particularly September and October of 2008, he took some extraordinary actions that, if they hadn't been taken, willingness to act like that, and even stretch his authority some. But he did what you do, and we talked about it being an economic Pearl Harbor, he did what should have been done in response to that Pearl Harbor. And I think he's done a stellar job.

BECKY: What happens if he's not reconfirmed? What's at risk?

BUFFETT: Well, just tell me a day ahead of time so I can sell some stocks. (Laughs.)

BECKY: You think there would be a strong selloff?

BUFFETT: Oh, I think so, sure.

BECKY: Across the board?

BUFFETT: Yeah. I think it'd be justified.

BECKY: You do?

BUFFETT: Yeah, I think - I think one of the - I think Congress generally is the worry of the American people, particularly what they've seen over the last 12, 18 months. If Congress essentially said we can do this better then a Ben Banana, and we think we know, I would get very worried.

The full transcript is here.

If the market hates uncertainty, what is it making of the latest SEC fishing expedition about market structure? Money quote from the Concept Release (pp 41-42):

In addition, what standards should the Commission apply in assessing the fairness of the equity markets? For example, is it unfair for market participants to obtain a competitive advantage by investing in technology and human resources that enable them to trade more effectively and profitably than others?

The text is the SEC's. The boldface, dropped jaw, and boggled mind are mine. Who's in charge at the SEC, Handicapper General Diana Moon-Glampers?