Feeling the need to prove government is the only answer to our problems, Obama and team went to the citizenry. Unfortunately, not knowing how government works, they forgot to tell the people who make the bloated, fat and ineffective government possible.
Stocks Tumble as Bailout Plan Is Unveiled
US stocks fell sharply Tuesday in a broad-based decline as the government announced details of its latest bailout plan.
The Dow Jones Industrial Average was down nearly 300 points after Treasury Secretary Tim Geither revealed details of the bank-bailout plan. Earlier, the blue-chip index was down less than 100 points.
Some market pros said the market selloff was simply a case of buy on the rumor, sell on the news.
Tony Crescenzi of Miller Tabak said Geithner spoke to the wrong street: Main Street instead of Wall Street.
"The problem is that Geithner needed to speak more to Wall Street, where the problems lie, rather than stay at a distance as he did, and leave Wall Street with too few details with no roadmap by how it might find its way out of current difficulties," Crescenzi wrote in a note to clients.
The "Financial Stability Plan," as it's now called, consists of four main components:
1) It will set up a public-private fund to mop up to $500 billion of spoiled bank assets.
2) It will set up a consumer-lending facility to support up to $1 trillion in new lending.
3) It will devote up to $50 billion to help stem home foreclosures.
4) It will provide new funding to banks after a "stress test" to determine if the bank is healthy.
Some market watchers remain skeptical over the benefits of the plan and legendary investor Jim Rogers told CNBC it could even make things worse. The bailout will plunge the US further into debt and it is designed by the same people who failed to forecast the crisis in the first place, Rogers said.
I think I will now use the Obama model and borrow tons of money to pay back money that I have already borrowed and to complete the financial fiasco, I will tick off my boss so that I will get fired. That just about sums up what the Rookies from ChiTown have accomplished so far.
