Hang onto your hats girls and boys! Here we go for another wild and turbulent ride
Investors are turning skeptical about the government's latest bank bailout plan.
Financial stocks led the market lower Tuesday, reflecting Wall Street's growing concerns about the government's ability to restore the health of the banking industry. All the major stock indexes fell more than 2 percent, including the Dow Jones industrial average, which tumbled more than 300 points.
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.
It also would boost an effort to unclog the credit markets that govern loans to consumers and businesses. Funding for the effort would jump to $100 billion from $20 billion.
"The good news is they are going to spend a trillion dollars, the bad news is they don't know how," said James Cox, managing partner at Harris Financial Group.
"They built this up as being a panacea," he said. "There was so much hope pinned on them to do a good job. The expectations have been so high. It's hard to live up to."
Read here
Investors are turning skeptical about the government's latest bank bailout plan.
Financial stocks led the market lower Tuesday, reflecting Wall Street's growing concerns about the government's ability to restore the health of the banking industry. All the major stock indexes fell more than 2 percent, including the Dow Jones industrial average, which tumbled more than 300 points.
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.
It also would boost an effort to unclog the credit markets that govern loans to consumers and businesses. Funding for the effort would jump to $100 billion from $20 billion.
"The good news is they are going to spend a trillion dollars, the bad news is they don't know how," said James Cox, managing partner at Harris Financial Group.
"They built this up as being a panacea," he said. "There was so much hope pinned on them to do a good job. The expectations have been so high. It's hard to live up to."
Read here