Closing Bell Oct.27 by Milota Sidorova

Yesterday, the world press labeled the next trading week extreme volatile and within 24 hours we get the immediate response. Dow Jones dropped another 203 percent hitting the bottom of 2008, literally 8,176 points. Asian markets declined dramatically as well. Honk Kong market closed with 12 percent loss and Japan Nikkei reached its 26 years low. Stocks have been declining all day long, despite generally optimistic home sales reports and another governmental step to ease the crisis.

According reports home sales increased more than 2.7 percent last month and also the earnings have been rising. As expected, Fed has approved another full percentage rate cut that should theoretically boost the confidence, such as it began the preparation of buy out the short term debts named also commercial papers used to cover everyday expenses and salaries.

Nine major banks of America will receive the first $125 billion package. What might be quite distressing is a fact some of the corporations didn’t have any problem during last months, on the contrary they had credit enough to take over falling Wachovia or Merill Lynch. Karen Thomas, the executive vice president for the Independent Community Bankers of America said there were another 8,000 smaller banks in the U.S. and it wasn’t just right decision to pick up the winners.

Credit crisis deals tough times for another branches of economy and industry. We’ ve heard of General Motors, Peugeot or other major carmakers reducing the production and limiting the jobs. Treasury has received calls for help and yesterday and Dana Perino, the Presidential press secretary declared Bush’s administration was ready to release extra $20 billion to develop the projects focused on new energy efficient vehicles.
Certainly, one has to smile gently. It’s definitely a noble idea, but what does it matter to release billions on hydrogen GM vehicles that cost more than $1 million a car?
Let’s talk about massive distribution and usage. There have been only two hydrogen stations in the whole state of Washinghton. Let’s talk about millions who lose their jobs, homes and count each dollar to buy the food.
Ok, let’s talk about development of eco-friendly vehicles.
For inspiration, please check the website of India Tatamotors and think about a car driven by compressed air.

After European Central Bank announced it could advanced another rate cut next week, most of the European markets have closed with slight loss, despite slightly recovering. London FTSE ended with 0.79 percent loss, French CAC – 40 rose from 6 percent drop to 3.97 percent and German DAX gained 0.91 percent.


related story: http://news.yahoo.com/s/ap/20081027/ap_on_bi_ge/financial_meltdown;_ylt=AglzVOY6rLOYmbaDyeKA3M2s0NUE

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

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edited by Beata Biskova