Wall Street’s been hanging around the past week or so waiting for the Obama plan that was going to save the economy. I don’t what the folks were hoping for but they got nothing: there is no plan. That’s rather disturbing and the market is responding appropriately: it’s tanking.
The Dow Jones Industrial Average, which ended little changed on Monday as investors awaited action on the bailout and the economic stimulus package, was off about 307 points, or 3.7%, at 7963. Bank of America was its weakest stock, dropping by about 14%, and Citigroup was off by more than 10%. But all 30 of the blue-chip average’s components were in the red.
The S&P 500 was off 3.6% at 838, with financials down 6.2%. The Nasdaq Composite Index was off 2.8%, at 1547.
…. Despite the forceful words, Mr. Geithner noted his office was still exploring options and details for an asset value program, with little answer on what to do about banks’ toxic assets.
We’re only a few weeks into this and it seems as though the new president is in over his head. I was thinking something along those lines this morning as I toured the scanty ranks of broker open house showings. I may have been seeing the last hurrah of dreamland prices, based on the Greenwich of old. I may never see their like again. I’ve been pretty calm about all this mess but the revelation that the leaders of my country are truly clueless is scaring me..