One of my employees (not in the business end of the organization) asked me why the stock market dove in spite of the EESA (bailout legislation). Simple. The market plunged because of the EESA, not in spite of it.
Investors recognize it as a placebo in a barrel of pork. In this economic crisis, using this emergency measure to pork up wooden arrows, rum, etc. is akin to EMTs arriving at a disaster site and stealing the wallets of the victims.
Where were the draconian cuts in wasteful government spending, duplication and overemployment? Just more pork. Yeah, that'll help us out of the hole.
The "bailout" will be financed by printing more money and your taxes. Inflation and sapping purchasing power. Effective plan.
Even more relevant is the investors discern the fundamental and momentous shift in the fabric of our capitalistic system. The feds took over Fannie Mae and Freddie Mac (stupendous failures that they helped craft) and the EESA imbues the Treasury, FDIC and Federal Reserve with super powers and arbitrary control. The same outfit that mucked up Social Security, Sallie Mae and a legion of other programs – what could go wrong here?
The powers are in place and the overt socialists are about to assume control of the executive branch with promises to kill the geese that are laying our golden eggs, with the exception of their Hollywood friends (see: EESA/pork). Worked out great for the Russians, et al.
The investors see it coming and aren’t fooled by the crap sandwich that the EESA is. They’re not the idiots with their noses stuck against a computer screen eight hours a day. They’re reading the entrails. It’s now a whole new country, and not one that will be good for business.
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