The headline on CNNMoney.com at 11:55 AM is “Stocks sink to 3-month lows.” That is not a headline that screams confidence. The DOW is sinking, down 270 points for the day.
As Obama readies his big spending bill, he really should take a step back and look how the business center of this country is reacting to his first big piece of legislation.
“Stocks tumbled Tuesday morning as investors worried that the $787 billion economic stimulus plan won't go far enough to slow the pace of the economic downturn.The Standard & Poor's 500 (SPX) index lost 30 points, or about 3.6%. The Nasdaq composite (COMP) lost 50 points, or about 3.2%.”
The Dow Jones industrial average (INDU) fell 230 points, or about 3% roughly 90 minutes into the session.
The Stock Market has not seen any favorable gains since Obama took office. So far, his term has been defined by partisan politics over the $800 billion dollar stimulus package and the mess some of his nominees have made of his Cabinet. Since the stimulus package picked up steam last week, the DOW started to decline from 8,400 to below 8,000.
With GM and Chrysler expected to release their own bail-out plans today, more doom and gloom may be on the way. Of course, it might not hurt if our national leaders stopped using doom and gloom phrases when discussing the economy. After all, consumer spending was up 1% in January, without the help of a stimulus.