"THANK GOD It Passed!" Paulson Changes Tune On Bailout [View All]

[TheWatcher]

Stocks skid on news gov't won't buy banks' assets
Wednesday November 12, 3:52 pm ET
By Sara Lepro, AP Business Writer
Stocks plunge on dismal corporate reports, news gov't won't buy banks' scoured mortgage assets

NEW YORK (AP) -- A disheartened Wall Street fell for the third straight session Wednesday as investors absorbed another series of dismal corporate reports and news that the government won't buy banks' soured mortgage assets after all. The Dow Jones industrials fell 400 points, and all the major indexes dropped more than 4 percent.

(snip) There was more pain at mid-morning, when Treasury Secretary Henry Paulson said the government's $700 billion financial rescue package won't purchase troubled assets from banks after all. He said that plan would have taken too much time, and that the Treasury instead will rely on buying stakes in banks and encouraging them to resume more normal lending.

While the market had been pleased by the government's decision weeks ago to buy banks' stock, investors still hoped to see the financial industry relieved of the burden of the mortgage assets whose decline in value helped set off the nation's financial crisis. His comments, which underscored the anxiety that remains about the health of the financial system, sent stocks falling further.

Analysts believe the market is in the process of retesting the intraday low hit on Oct. 10, when the blue chips fell to 7,882.50.

http://biz.yahoo.com/ap/081112/wall_street.html



Well, Kids, We've been HAD. Color Me Surprised.

NOT.