Posted on 01/30/2009 12:45:09 PM PST by Golddigger3
Stocks tumbled for a second straight day on Friday as a report saying a plan to relieve banks of money-losing assets may be put on hold compounded investor fears about fallout from the deepening recession.
The benchmark S&P 500 briefly slid 2 percent as investors pummeled bank stocks immediately following a CNBC television report that the plan to mop up toxic assets might be put on ice.
"The banking system is still in crisis mode," said Dean Barber, president of investment firm Barber Financial Group in Kansas City.
"The surge we saw in financials earlier in the week was more symbolism than it was substance. There wasn't anything that had been decided upon. There's no clarity who is going to get the money, how much they are going to spend."
The Dow Jones industrial average (^DJI - News) slid 100.84 points, or 1.24 percent, to 8,048.17. The Standard & Poor's 500 Index (^SPX - News) shed 12.41 points, or 1.47 percent, to 832.73. The Nasdaq Composite Index (^IXIC - News) declined 17.17 points, or 1.14 percent, to 1,490.67.
Shares of Citigroup (NYSE:C - News) slid 5.6 percent to $3.68, as shares of Bank of America (NYSE:BAC - News) dropped 2.8 percent to $6.59. The S&P financial index (^GSPF - News) fell nearly 1.5 percent.
Even before the CNBC report investors had been put on the defensive by news the U.S. economy shrank at its fastest pace in nearly 27 years in the fourth quarter, and other grim economic data and downbeat earnings added to worries . . .
(Excerpt) Read more at finance.yahoo.com ...
0bama’s fault!
Without a doubt or sarcasm!
The business community is not panicking because an anti-business, pro-tax socialist is now in the White House. That's not why the stocks are falling. That's not why massive layoffs are occurring. No! It has NOTHING to do with that!
There's nothing to see here. Move along.
Time for the Perdogg Economic Plan.
I am temporarly without tv .. it’s 4PM .. where is the DOW now?
The markets look ahead, and evidently they don’t see light on Obama’s horizon. That would be ‘our’ horizon unfortunately.
LLS
The market is forward looking. It is clear that the government has no intention to ‘fix’ the financial model to keep commerce moving. The ‘Obama Administration’ demonstrates they are either clueless or really intend to ‘shrink the economy’ like Carol Browner would like.
This is a NO CONFIDENCE vote for Obama.
There. Fixed...
About 8000.
I thought Obama was going to save the economy. I’m waiting.
Yes We Can!
(Implode the economy)
Why does the market surreally finish above 8,000 so often.
Today it finished at 8000.96. It’s as if the Fed is pumping money into the market whenever it goes below 8,000.
I guess when Wall Street hears statements like businesses shouldn't be making profits right now they react accordingly. Obama is a disaster.
It doesn’t, actually. It has everything to do with Obama continuing Bush’s stupid loot-the-taxpayer-and-give-it-to-Wall-Street programs, plus the added burden of a 900 bil porkulus bill.
I would have thought the mere prospect of having the Lord Obama in the White House would send the market skyrocketing.
Obama and CONgress are clueless, but so are you guys.
CONgress and Obama cannot “fix” this, no matter what they do.
All they can do to help out would be to force mark-to-market accounting, force CDSs onto a public exchange and disallow CDSs without reference to the underlying, and prop up the FDIC to keep depositors whole.
We are going to have lots of pain - how much will be determined by how much Obama continues the “hide the sausage” game all the banks want to play.
Thanks FRiend.
LLS
The S&P will hit 600 before this is all over, maybe lower and there ain’t nothing that can be done to stop it. Once the barrel goes over the cataract there is nothing to stop it till it hits bottom, the only thing Obama or anyone else can do is make the trip down worse.
Or as history will remember his plan..."a fox in every hen house!"
da nada
Because that's exactly what the Working Group on Markets, aka the Plunge Protection Team, is doing. Below DJIA 8000, the financials collapse. So they're throwing the usual Hail Mary pass at the market and painting the tape at exactly 8000 to make their point to those who wish to see that point.
Thank you house members over fanny&fredmac and banking.
To a man, and a woman, the liberals are confused, scared, and awash without direction. The conservatives are calm, assured, know it will eventually pass, and reinforcing the liberals doubts that we are on the right path with Obama.
It is, for what are admittedly tough times, humorous.
Yup. They ‘caught the car’ and haven’t a clue what to do with it.
Ha! The biggest Chicken Little I know is also the most rabidly liberal friend I have.
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