Friday, January 18, 2008

Stocks fall after Bush announces plan

Stocks fall after Bush announces plan - Yahoo! News

By MADLEN READ, AP Business Writer 14 minutes ago

NEW YORK - Wall Street turned lower Friday as skittish investors, unable to hold on to much optimism about the economy, drew little comfort from President Bush's economic stimulus plan

Investors had already pulled back from a big early gain, with the major indexes trading mixed as Bush began to speak. By the time the president finished announcing a plan for about $145 billion worth of tax relief, the indexes were well into negative territory.

"It's disappointed in the size of the economic growth package. Wall Street's showing its displeasure," said Kim Caughey, equity research analyst at Fort Pitt Capital Group in Pittsburgh. "Honestly, I think the institutional investors understand the limits to the government's ability to enact economic change."

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Translation: Wall Street doesn't really care whether the average consumer gets a tax rebate or not. They care about profiting from consumer debt, foreclosures, and foreign investment.

On a related note:

Should Countrywide CEO Angelo Mozillo give his $100 million severance to subprime mortgage victims?

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