Investors react with frustration over the lack of details in Treasury Secretary Geithner’s announcement of the government’s bank recovery plan.
WiredPRNews.com – Investors showed their frustration with continued uncertainty on how the government will restore the financial health of the banking system on Tuesday. As reported by the Associated Press (AP), many investors decided to unload their stocks after Treasury Secretary Timothy Geithner made his highly anticipated speech on Tuesday.
Geithner’s announcement, which was expected to outline a plan for restoring the health of credit markets, proved disappointing for many who wanted much more detail. James Cox of Harris Financial Group is quoted by the AP as stating, “The good news is they are going to spend a trillion dollars, the bad news is they don’t know how.”
As noted in the report, stocks fell approximately five percent Tuesday, with a 400 point decrease for the Dow Jones Industrial Average. Jeff Buetow with Portfolio Management Consultants is quoted as stating of Geithner’s speech it “basically puts a spotlight on the fact that the government has no idea how to fix the problem… People bought on rumor and hope, and now they’re selling on reality.”
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