#1 U.S. offers $2 trillion bank plan but stocks slump02-10-2009, 04:35 PM
By Glenn Somerville
WASHINGTON (Reuters) - U.S. Treasury chief Timothy Geithner on Tuesday unveiled a new bank rescue plan that would put $2 trillion to work mopping up bad assets and restoring credit, but stock markets plunged on fears it would not work.
Global markets had intensely awaited Geithner's ideas for a plan mixing private and public funding to stabilize a financial system tottering under the weight of bad mortgages, but were disappointed over the scant detail he provided.
The Dow Jones industrial average closed down more than 380 points or 4.6 percent in its biggest one-day percentage drop since December 1, while prices for U.S. government bonds climbed as investors sought safety. The KBW index of bank stocks fell almost 14 percent.
Geithner said lack of public confidence in prior rescue efforts had made it all the more difficult to stop "a dangerous dynamic" in which a lack of credit undercuts the economy and leads to more weakness among banks, worsening the recession."If every poor man is to come here and start requesting money for all his children, the applicants will never be satisfied and the nation's finances will collapse." Emperor Tiberius: Tacitus:Annals
02-10-2009, 06:34 PM
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For an administration that had all the answers during the campaign, they are fumbling the ball like a bunch of rookies. The dumb shit Geithner spouted out a bunch of generalities but little in the way of concrete details. Investors heard this double talk and did not like what they heard and the market tanked almost 400 points. They want to hear clarity and resolution rather than doom and gloom. The market will never turn around if these turds keep preaching this shit.
Obama, Paulsen and Geithner think throwing good money after bad money is going to work. Never happened before. Rather than the bank bailout being $700 billion, Geithner is talking about twice that amount. Better put your money in hard assests like gold, silver, platinium, etc cause that paper dollar is not going to be worth anything.
02-10-2009, 08:08 PM
Let's see...the tally in what Obummer & crew have done just to the stock market...
11/5 & 11/6/08 - biggest 2-day decline EVER. Consider the decline a telltale omen.
1/12-1/16/09 - a huge week-long loss as investors anticipate the upcoming inauguration
1/20/09 - the most dismal inauguration day performance ever, even after the prior week's sell-off. Gee, I wonder why?
2/10/09 - Senate passes the bogus "stimulus" bill & Geithner "details" his economic plan. Stocks drop 382 points. At least this time some of the media attribute the drop to Obummer's economic "plan". Correct me if I'm wrong, but isn't a stimulus plan supposed to provide hope for a positive outlook? Might investors have lost hope when Obummer pushes his pork-laden, doomed-to-fail plan and it just clears another hurdle?Nothing says "idiot inside" better than an Obama/Biden bumper sticker.
02-10-2009, 08:19 PM
If the market is looking for clarity from the tax dodger or the magic negro, they have a very long wait. Their idea of stabilizing the economy is to throw a few trillion into their pet socialist projects and claim they are creating jobs. The only thing they are creating is havoc and fear. :mad:"If every poor man is to come here and start requesting money for all his children, the applicants will never be satisfied and the nation's finances will collapse." Emperor Tiberius: Tacitus:Annals
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