A Deep Breath before… by Milota Sidorova

An immediately action promise seemed to relax market’s investors. Troubled turmoil events of last days called for government action. However, the reactions were different the steps have been made and for a short time, there a glimpse of light shining Wall Street.

American stocks soared significantly after Paulson had announced to pull out the bad debts of American banks and covert them into one committee. This although unfamiliar step has been already taken in mid 80’s. Investors calmed down after several of world’s most influential banks promised to pump almost $180 billion to back up FED’s plan.

However, any details have been outlined yet, the government’s and FED’s representatives are about to discuss the rescue plan during the weekend.

FED’s been busy last days, taking quick steps to hold on AIG. Whereas considered as relatively positive step it’s already been criticized by the opposition as well as Republicans themselves. According them the plan has been approved without any discussion with the Congress.

Personally I have to smile on fever McCain’s babbling. On Tuesday – he was the first one to shut down AIG and 48 later he’s the most faithful warrior calling for government’s injection in here. At least we can’t be surprised – he said it long ago – he didn’t understand the economy. God bless the contradicitions!

Apart from politics, financial markets remain in big troubles now. Banks are desperately for the money and still refuse to lend them out in most of the cases.
According NY Senator Charles Schumer lending was the lifeline of economy so to save it, we needed to carry on loans.
However, if you are not a first time homebuyer or a customer with the highest rating, you are about to forget of loan proposition. Still the banks declare that virtually they loan money.

The plans should immediately stop this panic and put things in order. Naturally no one expects the fruits this fall. You can hear it from everywhere – every politician, every CIO has been babbling about what is necessary to do the best and so.
Still, there have been voices calling this ‘an irresponsible behavior’.

Due decline turbulent volatility, the discussion of banning short-selling financial stocks is holding on. The ban should prevent merchants from buying several financial companies stocks up to four months.

The main indexes rose up overnight such as gold and silver prices hitting its 26 year’s old maximum. It seems people do believe in everything apart the financials.
Still we all have to wait until the talks in Capitol Hill come to the end.






related story: http://news.yahoo.com/s/ap/20080919/ap_on_bi_ge/financial_meltdown;_ylt=AnjCcoD1c7YURCNL.OQNIP.s0NUE

by Milota Sidorova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.<br><br><font size=2>These news are original content from young talents around the world and are selected for you by Chris Cantell.</font><br>

edited by Beata Biskova