Dow Jones drop 400 points yesterday

lionfly

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Yesterday the US passed the expected plan, DJ dropped nearly 400 points. Is it because the plan is not good, useless, only passed with marginal majority?

If the plann is not good for economy, as indicated by market drop, why does US goverment think it is useful and want to implement it?

If it is able to do any good, why the market drop that much?

Though I know the saying "sell the news", but still can't understand the huge drop when passing the rescue plan.

Anyone can see some logic in it?
 
The markets were disappointed that the plan i) lacked clarity (the details are exceptionally vague) and ii) is not clear what it is trying to achieve - fiscal stimulus now, or investment for future growth. If the latter then the benefits will take a long time to come through.
 
it's a "rescue" plan requiring uncapped capital; it's been said (can't quote the source) that the amounts required are something like if you take $1000 bills and piled them one on top of each other, the stack would reach over 20 miles high....

plus, everyone and their dog is expecting a stack of more bad news on the solvency of many of listed companies and institutions over the next few weeks/months
 
hyperinflation

just need that together with another year of recession (considering last year was first year of recession) to spell d.e.p.r.e.s.s.i.o.n...
 
Will be interesting to see where the US markets go today. I can already sense a growing with disillusion with Obama. He just appears to be following the same path as Dubya rather than tackling the problem head on.
 
Will be interesting to see where the US markets go today. I can already sense a growing with disillusion with Obama. He just appears to be following the same path as Dubya rather than tackling the problem head on.

could this be aftershock day?
 
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