What bad news can be?
As the Market rose 20% from the bottom in March, there seems good news coming all together: housing market showed surprising rise, unemployment seems stable, and Feb/Treasury bond together to fix the credit problem. Is the bad news finally deceased?
Some analysts said no much bad news can be. Some even speculated that one possible bad news is terrorist attack! Of course, they added, it is unlikely so that the uprise would continue.
Is that really so? In fact, as more people lost their job, data already showed what the impact is. Household income is reduce in Feb and savings in January was up. ABC news now presents ways to save money. Under this circumstances, how can spending be expansive? Speculative behaviours are proved to be violatile. For example, oil price rose and dropped at much wider range than a few weeks ago. It was up to about $55 and dropped to $51.
The next big news is the G20 global cooperation to the crisis. Even before the show, resentment was already looming. For example, Chinese, Russian, and EU started challenging the US dollar policy. These briefing would not harmonize the meeting. To expect the meeting would stymie right after the meeting seems too immature.
Even the US economy itself seems not cooperating the rally well. In Friday's CEO meeting with the President, James Dimon of JP Morgan indicated that March is "a bit rough". Given speculations that GS and BAC would start return TARP money, the reality may not look too rosy. Some returning TARP money while the other can't is probably not good news to the banking system. This is because the others who can't return the money would means they are "lagging behind" and the banking is still in obvious evidence of bad/good bank or healthy/sick bank paradigm. Will the good ones be dragged down again by the bad ones, just like Lehman? It should be very cautious to see this situation.
In all, the bad news is actually in the economy itself.
Some analysts said no much bad news can be. Some even speculated that one possible bad news is terrorist attack! Of course, they added, it is unlikely so that the uprise would continue.
Is that really so? In fact, as more people lost their job, data already showed what the impact is. Household income is reduce in Feb and savings in January was up. ABC news now presents ways to save money. Under this circumstances, how can spending be expansive? Speculative behaviours are proved to be violatile. For example, oil price rose and dropped at much wider range than a few weeks ago. It was up to about $55 and dropped to $51.
The next big news is the G20 global cooperation to the crisis. Even before the show, resentment was already looming. For example, Chinese, Russian, and EU started challenging the US dollar policy. These briefing would not harmonize the meeting. To expect the meeting would stymie right after the meeting seems too immature.
Even the US economy itself seems not cooperating the rally well. In Friday's CEO meeting with the President, James Dimon of JP Morgan indicated that March is "a bit rough". Given speculations that GS and BAC would start return TARP money, the reality may not look too rosy. Some returning TARP money while the other can't is probably not good news to the banking system. This is because the others who can't return the money would means they are "lagging behind" and the banking is still in obvious evidence of bad/good bank or healthy/sick bank paradigm. Will the good ones be dragged down again by the bad ones, just like Lehman? It should be very cautious to see this situation.
In all, the bad news is actually in the economy itself.
posted by Intl.investment.services at
11:00 AM
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