. . . and then, they panic:
A lack of details in the financial rescue plan unveiled today by the Obama administration sent the stock market down sharply. The Dow Jones industrial average tumbled almost 400 points.
Yeah, but how do they know that was because of Geithner’s speech?
The Dow, which was down only about 70 points before Geithner’s speech, fell sharply as soon as he began talking.
The story says financial stocks took a beating due to displeasure over “the dearth of specifics” in Geithner’s speech, which was “billed as a major policy prescriptive” but “gave little more than the broad contours of the plan, many of which already had leaked out in recent days.”
That raised not only the specter of a substantial delay in the long-awaited recovery of the banking sector but also doubt about the ability of President Obama’s economic team to deal with the challenges posed by the deteriorating economy and faltering markets.
You’re in good hands, folks. Don’t worry about a thing.