House Passes Bailout On Second Try. Is that a favor to the market?

2008-10-3

House Passes Bailout On Second Try. Is that a favor to the market?

WASHINGTON — President George W. Bush signed the biggest government
intervention in the financial markets since the Great Depression after
U.S. House of Representatives lawmakers wary of growing signs of the
nation’s economic distress voted Friday in favor of a $700 billion Wall
Street rescue package. PERIOD.

In the end, 172 Democrats and 91 Republicans voted for the legislation.
On Monday, 140 Democrats and 65 Republicans voted in favor of the bill.

Well, let us see the market. The stock plummet again. Do you feel weird? It does not matter whether this bill get passed or not. Why? The fundermental of the market does not look good any way. I just feel like couple of months ago that I want to have a PS3 so badly, and after getting that, hohooo, that is it. So that is the market. Bill has some problems itself. If you do not let it pass, the situation will get worse. Well, I just open this could increase certain liquidity of the market. Now the problem is the Banks still won’t trust each other. There is no credits on this market. Some other facts on the market you should aware is

Nonfarm payrolls, which are calculated by a survey of
establishments, tumbled 159,000 in September, the Labor Department said
Friday, the sharpest decline since March 2003. The pullback was
broad-based, including manufacturing, construction and many service
industries. August was revised to show a slightly smaller decline than
first estimated.

The unemployment rate, which is calculated using a separate survey
of households, was unchanged at a five-year high of 6.1%, it had risen
sharply in previous months. According to the household survey,
employment fell by 222,000 while unemployment rose by 101,000.

“The U.S. economy is shrinking, and there will be many more awful
reports like this,” said Ian Shepherdson, chief U.S. economist at High
Frequency Economics.

Average hourly earnings increased $0.03, or 0.2%, to $18.17. That
was up just 3.4% from a year earlier, suggesting workers are having a
hard time commanding higher salaries in the face of a sluggish jobs
market.

Well, I even do not wanna look at my 401K account. Now paulson has the bazuka.

Rating: 6.0/10 (47 votes cast)

大家赶快行动吧～～U.S. job marketing is getting better and better 美国工作形式一片大好～上半年平均就新增14万5千个就业机会。只要你不是汽车制造业，我看你都不用担心了。简单说一下，healthcare, education, goverment, leisure都有大幅度增长。不过有一点就是如果要指望靠公司加薪看来收获不会很大，还是跳槽来得快。转载自Wall Street Journal ROGRESS REPORT Strong...
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