Dow Falls 400; Geithner Recovery Plan Worries Investors

Treasury Secretary Timothy F. Geithner unveiled the Obama government’s  latest tactics to address the troubled banking system today and the Dow went down 400 points.

My Geithner, who failed to pay his own taxes before he was Secretary of the Treasury, came forward with a plan with few details — those goodies he said he’s reveal real soon.

He also went out of his way several times to say he was trying things he’d never tried before and that there isn’t certainty that his plan will work…..

Sure is a lot of money, like $2 trillion, borrowed, for incomplete details and little knowldge of success…..

Related:
No Details: Can’t We Do Better than This?
Top Banking Committee Senator Attacks Obama, Geithner Bank Bailout

Dems Alraedy Have Excuses for Economic Failure

http://michellemalkin.com/2009/02/10/ta
x-cheat-wonder-boy-geithner-is-a-laughingstock/

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For jittery investors, the government’s latest plan to stabilize the financial and credit markets with up to $2 trillion in public and private funds provided cold comfort.

Stock prices tumbled on Tuesday after Treasury Secretary Timothy F. Geithner unveiled the government’s latest tactics to address the troubled banking system. Primary among those was an expanded efforts ease consumer and commercial credit and a new program to buy up hard-to-sell assets that have bogged down banks.

By Jack Healy
The New York Times

At 2:15 p.m., the Dow Jones industrial average was down more than 345 points, or 4.2 percent, dropping below 8,000, and the broader Standard & Poor’s 500-stock index was down about 4.4 percent. It was shaping up to be the worst day for stocks since a broad sell-off on Inauguration Day.

Despite the size and scope of the Obama administration’s plans, investors said Mr. Geithner’s proposal raised more questions than it answered. The way out of the financial crisis, analysts said, looked as murky as ever.

“We’re not impressed, and I don’t think the market’s impressed either,” said Ryan Larson, head equity trader at Voyageur Asset Management. “It’s clear the administration is still trying to work on something concrete. I think the market sensed that, too.”

A key measure of market volatility rose, as did prices of safe-haven government debt. The yield on the benchmark 10-year Treasury note, which rose above 3 percent on Monday, fell back to 2.83 percent.

Every sector of the market was trading lower, with the Standard & Poor’s financials index falling by more than 8 percent, reflecting uncertainty about the banking system and how the government’s latest plans would affect major financial companies. Shares of Bank of America slid more than 5 percent, and Goldman Sachs and Morgan Stanley also fell.

Read the rest:
http://www.nytimes.com/2009/02/11/busine
ss/11markets.html?_r=1&hp

By Tim Paradis, Associated Press

 Investors are frustrated with the government’s latest bank bailout plan — and showing it by unloading stocks.

The major stock indexes fell as much as 5 percent Tuesday, including the Dow Jones industrial average, which tumbled 400 points. Financial stocks led the market lower, reflecting Wall Street‘s growing concerns about the government’s ability to restore the health of the banking industry.

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.

The 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 Inc. The latest plan calls for a government-private sector partnership to help remove banks’ soured assets from their books.

Read the rest:
http://news.yahoo.com/s/ap/2009021
0/ap_on_bi_st_ma_re/wall_street

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