CNN article: Investors relieved - but nervous
This article by CNN brings up the tensions worldwide arising over how the 700 billion dollar bailout will be implemented. Although there has been an agreement on the bailout, the market will not respond immediately, but rather in strides that could create fluctuations throughout the market over time. There has even been some discussion about lowering interest rates to create some stimulation in the economy to keep it level throughout the process.
If there are indeed further fluctuations in the economy while this policy takes place, what can we infer about future levels of the stock market, financial markets, unemployment and other economic factors during this transition period?
2 comments:
http://biz.yahoo.com/ap/081005/wall_street_week_ahead.html
This article says how the investors are expecting a volatile week as they prepare for the information on how the government is going to spend the money. With the world scrambling to shore up their accounts the financial markets will have a "choppy ride" because of all of the unknowns.
Lower interest rates may not be the way to go. Consumer confidence is very low, and low interest rates may not encourage spending to the country's liking..
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