The stock market plummeted nearly 400 points today on the announcement of Treseury Secretary Timothy Geithner’s new bailout plan.  This should have been something that sent the market soaring but instead, it sent it the other way.  Why?

 

Maybe an honest mistake, maybe not but when you announce a plan that involves Wall Street, you had better have more than just a plan.  A lot of ideas and no real action plan does not a plan make and the market saw through it.  They already knew the plan.  They wanted specifics and didn’t get it and because of this, the market sold off.  Also contributing to the selloff was the idea that the plan may not be enough to thaw the credit crisis or fend off an even deeper recession.

 

Later, Secretary Geithner’s comments on Capitol Hill were also less than specific and the market was again left with nothing more than what it heard earlier in the day.

 

According to some contributers on CNBC today, people are tired of hearing the Obama doom and gloom without any real plan in place to curb it.  I’m not going to comment on the politics of the day but let’s look at the only objective measure of the new plan.  The market plunged a little after 11:00 this morning after the plan was announced.