Continued bailouts will keep sending stocks down a slippery slope, says BlackRock CIO Bob Doll, making economic problems worse instead of solving them.
“I think that part of the problem in the market is that markets are wondering where does all this end up? Who doesn’t get bailed out?” Doll told Fox News.
“Whoever gets in line and asks for the money seems to get it.”
Originally, Doll says he was expecting a 3 percent to 5 percent contraction in the economy. Now he anticipates 5 percent or even 6 percent, with this quarter being worse than the first quarter of 2009.
“I believe we’re still in the early part of a long-term bottoming-out process,” Doll says.
“Given the magnitude of the decline, it will take several months for the market to move through the bottom.”
The political landscape appears to have changed significantly since Congress voted to approve the $700 billion bailout package just over a month ago.
At a recent press briefing, White House press secretary Dana Perino cautioned there was no "appetite" to open up TARP money to individual industries.
"Once you start down that road, it's a slippery slope to other industries that might say that they need help,” Perino said.
“But we do have an entire pot of money, $25 billion, that is specifically for the automakers."
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