Doubts about bank bailout sinks stocks

Uncertainties about the Senate rescue package & part II of the bank bailout package hurt stocks. Dow dropped 207, decliners over advancers 2-1 & NAZ fell 30. Stocks are crumbling as the markets learn about the Treasury's plan for banks.

Doubts about the bank bailout package drove bank stocks lower, the S&P 500 FINANCIALS INDEX is having another bad day:

Value 127.48

Change -5.65

% Change -4.2%

The Alerian MLP Index was down pennies (at least it remains near the high of its recent trading range) but Dow Jones REIT Index fell 3. Other indices didn't move much.


Alerian MLP Index --- YTD




Uncertainty played into the hand of oil bulls:

CLH09.NYM

...Crude Oil Mar 09

...40.38

... 0.82 .......(2.1%)

Timothy Geithner, Treasury Secretary, describes his “comprehensive” attack on the financial crisis. He warned that administration’s strategy will “cost money, involve risk and take time.” Geithner promised another round of capital injections for U.S. banks plus an initiative, in partnership with private investors, to address the toxic assets weighing down banks. The administration’s plan will add about $1½T in new lending & handling distressed assets. The overhaul $700 B rescue fund is aimed at addressing failures of the first phase of the program, which has not spurred additional lending. Geithner’s warning about the cost of the program followed signals that the administration may seek even more money after Pres Obama's warning that the economy is at risk of a “full-blown crisis.

•Geithner Says `Comprehensive' Remedy for Crisis Has Risks, Will Take Time


With all the attention on bailout packages, the auto companies have been pushed to a back burner. But they continue to face steep hurdles. Next week they will report to congress on their plans to get squared away. General Motors (GM) already announced layoffs & salary reductions to help in negotiations with unions & bondholders.

•GM Will Cut 10,000 Salaried Jobs Worldwide, Reduce Pay in Bid to Keep Aid


We saw the movie "Doubt" which is an excellent film. That word is the dominating force in today's market decline.