Last night Barack Obama announced his latest spending plan to “revive the economy” would cost another $447 billion.
Today the markets tanked.
The Dow was down 172 points shortly after opening.
The Street reported:
In his speech last night to Congress, the President detailed a $447 billion stimulus package aimed at spurring job creation, a much more ambitious proposal than the $300 billion plan expected. It remains up in the air, however, which parts of Obama’s proposal would be able to pass Congress. Republicans are expected to show their support for the $253 billion in tax cuts but will likely oppose the payroll tax holiday component of Obama’s strategy.
Investors have been particularly uneasy as they await possible monetary and fiscal stimulus to jumpstart the sluggish economy. Federal Reserve chairman Ben Bernanke left the door open on a possible Fed stimulus in his speech Thursday, essentially leaving the market hanging for another two weeks before the next Fed meeting on Sept. 21. Meanwhile, any jobs proposal from Washington is not expected to pass until later this year, leaving the dismal U.S. jobs market staggering without help.
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