Bush just had a press conference calling for a growth economic package to boost the ailing economy. He suggested something like 1% of the GDP or roughly $160Billion dollars. He was so close to calling the current situation a recession.
His package does not seemed to inspire much confidence, initially I saw a DJ rise to about 150, it seems to be in the red after his "Economic Growth Package" was announced.
IMHO He might as well shut his mouth , before the package was announced, IBM results boost the stock market sentiment quite a bit.......
It will be interesting to see what will happen on Wall St. today. I predict stocks will continue their downward spiral unfortunately.
I agree, Wall Street expects a much more generous package, and with today's IBM's earnings and forecast underpinning the index, it still falls into the red, I can expect the subsequent periods to be worse........
I don't see the stock market falling much more, they are off around 20% off their highs. I think that when the next GDP numbers are released and if they are positive (not negative GDP) you will see the market turnaround.
it will be very interesting to see further data on US home foreclosures, auto sales and default rate, credit card default scenario, bankruptcies, job data, finnancial instutions subprime writeoff losses, inflation, consumer confidance......then only one can say that worse is over for that economy.right now it's scary for equity investors
The sub prime crisis is not a simple mortgage crisis, it starts from inaccurate data and hence risky mortgages which were turned into derivatives by the smaller local banks for sale to the bigger banks. The bigger banks themselves packaged these into different derivatives with others to sell to the national banks and the vicious cycle continues, how much was actually lost, no one knows. This is a prime example of Wall Street converting a simple mortgage into a series of extremely complicated derivatives that few if any understand the structure. The risks are there still, I do not see an end to it yet. The banks losses for this quarter is devastating. For those into stocks, do buy with extreme caution and only with the cash you have, definitely not with loans or overdrafts.