He not only doesn't pay his taxes and make bad decisions as the past Fed Governor from New York, but he doesn't know how to deliver an inspiring speech. Houston, we have a problem and it's with the new head of the Treasury. He is way over his pay grade and we're way over our head and heading to a cliff at about 100 miles an hour. Does anyone have a parachute?
Tim gives his "rescue" speech and Wall Street (Dow) immediately tanks 200+ points.
The Dow went further south (down 400+ points) but recovered at the close by being down just 382 points. Just 382 points down? :-(
Investors are turning skeptical about the government's latest bank bailout plan. Financial stocks led the market lower Tuesday, reflecting Wall Street's growing concerns about the government's ability to restore the health of the banking industry. The major stock indexes fell as much as 4%, including the Dow Jones industrial average, which tumbled 382 points. Traders and investors said the lack of specifics from Treasury Secretary Timothy Geithner on how the government would direct more than $1 trillion in public and private support was troubling.
There are no specifics because they're making it up as they go. No one KNOWS!
The new plan is aimed at restoring proper functioning to credit markets, which seized up over worries about bad debt after the September bankruptcy of Lehman Brothers Holdings. The latest plan calls for a government-private sector partnership to help remove banks' soured assets from their books. The plan also would boost an effort to unclog the credit markets that govern loans to consumers and businesses. Funding for the effort would jump to $100 billion from $20 billion.
Geithner's speech "basically puts a spotlight on the fact that the government has no idea how to fix the problem," said Jeff Buetow, senior portfolio manager at Portfolio Management Consultants. "People bought on rumor and hope, and now they're selling on reality." Investors focused on the financial rescue showed little reaction to the Senate's approval of its $838 billion economic stimulus package. The bill must now be reconciled with an $819 billion version passed by the House. Congressional leaders hope to have the bill on President Obama's desk before a recess next week.
"The economy is in deep trouble. The stimulus plan is not very stimulative. It's not addressing the real problem," Buetow said. "We have an insolvent financial system. The government is trying to find a comprehensive way to save it. They can't afford to just throw money at it. That's what they tried to do in the fall and that clearly did not work."
Anyone got a genie bottle?
About the Author:
As a spiritual-futurist, I interpret current events in light of possible macro-universal forces at play leading up to 2012, but not limited to it.
