Uh oh – turns out there is no plan

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..

We don' need no stinkin' plan!

We don' need no stinkin' plan!

5 Comments

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5 responses to “Uh oh – turns out there is no plan

  1. anonymous

    Community organizing and writing autobiographies…so much easier…and better paying

    But unlimited use of a 747 and car and driver for 4 yrs; free public housing….and don’t have to pay no stinking taxes….that’s what Timmy says

  2. Peg

    I’m glad you’re calm, Chris. I have this sinking feeling (ahem) that I’m on the deck of the Titanic, watching our once great nation hit the iceberg of irrational exuberance, fortified with irrational so-called “stimulus” and spending that will bankrupt whatever isn’t already there.

    Call me crazy. But, it seems that much of the “stimulus plan” is merely having our government doing more of what we, the people have been doing: spending what we don’t have, thinking that someone else will solve our problems, etc., etc.

    Calm? Not I.

  3. I would agree the ship hit the iceberg and everyone just looks tired of bailing. No is talking about jumping yet. I will be shock to not see Turbotax Tim gone very soon. This show today was terrible.

  4. DebtVulture

    Hummmmm it with O: “Timmy tax cheat and I don’t care”

  5. mhanna43

    Huh. Love the comment and the title of this one!
    Collapse. And add on the constant “Brain Raiding” of the media to the general public leads to nice recipe for disaster. Well, recipe has been made, we are just stirring the soup now.
    http://www.liquidmarket.wordpress.com

    And on a side note I miss Greenwich as well. Just moved back to Charleston, SC from there.