The verdict for the new bailout plan is in, and it stinks. Treasury Secretary Timothy Geithner announced the new $1.5 trillion financial rescue plan this morning, and the Dow Industrials promptly dropped 300 points. The Senate then approved the stimulus plan by a vote of 61 to 37. The massive market sell-off continued throughout the day, with stock indexes dropping 4-5% after Federal Reserve Chairman Ben Bernanke discussed economic rescue plans with the House of Representatives, according to Market Watch. Headed into the close, the Dow was hovering around 7,800. Ouch.
Tags: bailout, Ben Bernanke, DJIA, Dow Jones Industrial Average, Timothy Geithner, Treasury Department
When I first heard officials talk about the new proposal I thought they must be crazy. They used gloom-and-doom language, gave few details and even questioned whether it would work. The market tanked predictably. But was that irresponsible or very clever? A market dive puts even more pressure on the Congress to act quickly. Hmm . . .
[...] nation to not face a single bank failure, not to mention government intervention and bailouts, in the financial or mortgage sectors. Also, he mentions that the World Economic Forum ranked [...]