This is huge. Many had coalesced around the idea that this week would determine the economic tone for the rest of the year.
The articles point out that Geithner did not provide adequate details. Clearly we need to do some deeper investigation because on the surface this explanation for the drop does not cover it.
If investors did not hear what they wanted to hear, then what did they want to hear. Also what are the details of Geithner's plan and how will the plan restore the economy.
Geithner is allegedly already in the hot seat. Paulson made politicians very angry with his $700 billion request. Geithner is coming in directly behind that ill wind. There is a hope that Geithner will be presenting much more than 3 pages of explanation like Paulson did, and over time the depth of his plan will come forward. I hope that's the case.
Reuters: Stocks sink over 4 percent on bank plan apprehension
"This is not a clear-cut plan. It is reminiscent of previous plans where there was convoluted calisthenics to try to fix this thing. That's not what investors are looking for," said Bucky Hellwig, an analyst with Morgan Asset Management in Birmingham, Alabama.Reuters: Geithner on the defensive in his big debut
3 comments:
Tim comes off as arrogant if u ask me. I wouldn't trust him with my bank book let alone the economy. Where was he the last 8 yrs.? Kissing the asses of the people who fucked up so badly. My guess is he'll now cover up for them. I hope I'm wrong but we really do need some public hangings of these people not more CYA operations.
You have to wonder exactly what kind of change you can exact on a culture that is so deeply entrenched in its methods.
Today was a real eye opener for me. I got hit with two barrels, first I really get the utter lack of integrity and complete clinching to a very greedy culture by the bankers, you would think I would know better. Second there's the depth of this recession. What the hell was everyone doing. It was like everyone was a millionaire but in reality everyone was twice their worth in debt. American wealth is built on smoke and mirrors and all the while a few vampires are sucking it dry.
"Smoke and Mirrors", indeed! Debt is the monetary equivalent of crack cocaine when used the way our culture has been employing it. Now we're all experiencing the day after Reagan's sunrise in America as filtered through 30 yrs. of Repub. hubris and arrogance. Even Clinton carried on like one of them and did their bidding for the most part. Reagan and Bill lucked out in that they caught up swings in the bubble economy that started @ the end of the 70's. Volcker won't get us out of this one Sumner has already cut him out of the whole deal. He's being used as window dressing as is Buffet. Make no mistake the wall street guys from Sacks of Gold ( Goldman Sachs) still rule the roost.
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