Still that economy! by Barbora Misakova

There is one sphere where is not important if you like America or not & economy. In economy it is not important if you like US dollar or if you use it, if you are investing your money in some American shares or if you are just watching how the situation develops. Every economic move in America is narrowly connected to us and our economy. American economy is still the most powerful economy in the world, and if there is a problem, we can expect problems too. We all know about the American Wall Street crisis this year and those who are economic experts or at least read about this topic a lot know, how difficult and long-range process it is to put the economy to the previous and healthy level. Situation on Wall Street these days is not as good as it was, but some of the indexes had increased a bit. Last week the Dow index increased 0.27 percent, the Standard & Poor's 500 index rose just 0.23 percent but Nasdaq composite index decreased 0.79 percent. All these indexes sharply decreased this year and there is no sign it is going to be better. Even Hans Olsen, chief investment officer in JPMorgan's private client services, claimed it could fall even further. Generally stock markets fall 30 percent and it depends on this year's economy if the stock indexes will rise or fall again. Some analysts say, it can even fall another 15 percent if the economy is weak. There are tree basic problems & housing market, inventories and cash-strapped consumers and with it connected inflation. The biggest problems are with housing market & existing home sales slipped by about 1 percent. Another difficulties are with inventories. They are at very high levels what is caused by very weak demand. Problems with consumers' spending and income are another problem & they both are expected to rise by 0.2 percent while the inflation presents constant problem. It seems this year won't be as trouble free as we want.

related story: http://news.yahoo.com/s/ap/20080224/ap_on_bi_ge/wall_street_week_ahead;_ylt=As4drxCVs_mvWV9SKSBFz5as0NUE

by Barbora Misakova for PocketNews (http://pocketnews.tv)

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