|
|
|
|
|
Home  News Business Economic crisis in the United States
|
|
Economic crisis in the United States |
|
|
|
|
Sunday, 16 March 2008 |
Things are not looking good as far as the United States Economy is concerned. That’s being kind. In a unprecedented move the Fed and J.P. Morgan have bailed out the 5th largest bank in the United States, Bear Stearns. This did not stop its stock from plummeting almost 50% as news hit of possible impending collapse. Stories like these have not happened since the great crash of 1929 when the world was plunged into economic chaos because of the collapse of Wall Street.
Alfred E. Goldman, chief market strategist at A.G. Edwards & Sons Inc., a division of Wachovia says we've seen a bottom". "It's probably not 'the' bottom," he said, "I think it would be presumptuous to call it 'the' bottom." Mr. Goldman words can be taken at face value but also need to be taken as an attempt to calm investors from further panic that would weaken even more the market. As an excellent indicator of economic turmoil the price of Gold seems to say a lot. It’s at its all time high as it has closed above $1,000 and looks to climb even higher in the coming weeks. The bad news is that oil seems to be going up as opec refuses to raise production and the US is spending 12 million dollars a month on military operations in Iraq. The good news seems to be that the other major banks have no major cash crunches. Many people may see great opportunities on some undervalued stocks making the market rise once more after prolonged losses. That is the hope of Wall Street investors. Early signs seem to indicate a settling of wild swings in the market which should bring some kind of stability. When this happens then there should be a steady rise in the market. This stability make go a long way in changing peoples fears about spending and start propelling the market forward.
|
|
