Stocks continued to drop today, with the Dow Jones average tumbling over 200 points, or nearly 3 percent, after a week of declines. But when the Obama administration deflected chatter on bank nationalization, the plummet slowed, pointing to a catch-22 of market psychology: The more financiers fret over nationalization, the lower stocks go and the greater the need for assistance. White House spokesman Robert Gibbs said Obama "continues to strongly believe that the privately held banking system is the correct way to go." Nevertheless, General Electric fell below $10 today, off 44% for the year to date.
Read it at The Wall Street Journal
