Stocks Tumble as Geithner and Fed Detail Bailout Plans

[biopowertoday]

Looks like they are slightly edging upward --at the moment. Lets hope they continue the upward treand.

..............................


http://www.nytimes.com/2009/02/11/business/11markets.html

February 11, 2009
Stocks Tumble as Geithner and Fed Detail Bailout Plans
By JACK HEALY

Stocks fell sharply Tuesday as Treasury Secretary Timothy F. Geithner unveiled the government's latest banking bailout plans.

Mr. Geithner said the Treasury was creating a public-private investment fund, jointly run with the Federal Reserve with financing from private investors, to buy up hard-to-sell assets that have bogged down banks and financial institutions for the past year. He said the new fund, often described as a "bad bank" for holding toxic assets, would start with $500 billion, with a goal of eventually buying up to $1 trillion in assets.

In addition, the Federal Reserve announced that it was prepared to expand a program intended to ease commercial credit to $1 trillion, from $200 billion. The Fed said that it was also considering expanding the scope of the program, the Term Asset-Backed Securities Loan Facility, to include securities backed by residential and commercial mortgages.

The stock market, which had been trading down all morning, fell sharply after Mr. Geithner spoke. Around noontime, the Dow Jones industrial average was down about 270 points. The broader Standard & Poor's 500-stock index was down about 3.3 percent.

Investors said that despite the broad plans laid out by Mr. Geithner, the way out of the financial crisis looked as murky as ever...........................

[godai]

1. It's all manipulation, hovering around 8000 all day.

This has been the recent bottom recently. The day traders are all guessing what to do, buy or sell.

[Skidmore]

2. The era of free money is over.

[DJ13]

3. Lets hope they continue the upward trend.

I think we need to stop worrying about Wall Street so we can solve the problems on Main Street.

Wall Street would be fixed by having a healthy Main Street.

[biopowertoday]

4. i do believe that is true. Yet

perceptions of a market --or actually skiddish market tends to make it bad for all. when the market is not happy, the unhappiness seems to bleed to all.
Cheers,

[Barack_America]

6. Isn't that what ended up happening when the market got too "happy"?

i.e. isn't that what got us into the mess that we're in?

Seeing what a "happy" and deregulated stock market brought us, I'll take the market's negative reaction to Geither's plan as a good thing.

[biopowertoday]

8. the trick is to not allow "too" much happiness. I am all for regulation.

[uponit7771]

5. Geithner had an "announcement" and didn't announce shit!! WTF was he thinking??!!

[FrenchieCat]

7. Only those who don't understand call it "Nothing"......

Obviously the stock market players understand that the party is over and are learning that there is no such thing as a free lunch.

[BeyondGeography]

9. Profit-taking

Yes, there was a negative reaction to Geithner, but plenty of money was made by those who bought into the last two rallies early. Futures are up again because the lows have been re-tested. Carry on...