Stock Market Tanks on Geithner’s Bank Rescue Plan
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The stock market is not feeling particularly confident right now. And today’s announcement of a bank rescue plan from Timothy Geithner isn’t helping things. Indeed, with few actual details, and concerns that it just isn’t enough, the plan lacks several qualities that would instill confidence in the stock market. Stock Trading To Go offers this on investor sentiment toward the bank rescue plan:
The bottom line is that investors are worried that the plan may not be enough to loosen the credit markets. Others also feel the US taxpayer is taking on much more risk then it should. The bank aggregator proposal for example has been scrutinized heavily as an overall effective way to combat the crisis.
Confidence is vital to the stock market, and nothing that the government has been doing — from the bank rescue plan to the economic stimulus bill passed by the Senate today to the trillions already spend on banks and other companies — seems to be doing the trick.
So maybe it’s time for something a little bit different. Perhaps it’s time to stop indiscriminately throwing money at the problem. And maybe — just maybe — it’s time to let those Wall Street big wigs have the “free market” they’ve prattled about for eight years. Maybe it’s time to see who can survive when the risks are no longer socialized and we have to start all over.
Because what’s been going on the last few months haven’t really done much.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
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February 20th, 2009 at 11:22 pm
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