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Hopefully bear period over?
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Pension
Elite |
01-Sep-2007 23:47
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Bush and bernake say the right thing, to protect economy and not investor. Nobody will protect the investor because they are speculator. |
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cyjjerry85
Elite |
01-Sep-2007 23:15
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the bear will come...but its been delayed only |
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soloman
Master |
01-Sep-2007 22:36
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CNN -Fed vows to protect economy, not investors |
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scotty
Senior |
01-Sep-2007 22:07
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Article from SJ - SGX Focus - The B's out in full force Yeo Sue En, 01 Sep 2007 The US market logged its first winning month since May, and its no surprise that the gains came after the much awaited and much talked about speeches of Ben Bernanke and President Bush. The Dow was up 119.01 points or 0.9% to 13,357.74. S&P 500 rose 16.35 points or 1.12% to close at 1,473.99. And the Nasdaq was higher by 31.06 points or 1.21% to 2,596.36. On the New York Stock Exchange 2.74 bln shares changed hands and gainers outpaced losers 4 to 1. Volumes on the nasdaq was at 1.58 bln shares changed hands with the winners topping losers almost 3 to 1. Oil added 68 cents to US$74.04 a barrel and Gold rose US$8 to US$681.90. Treasuries slumped, as the 10-year bond lost 4/32 to a yield of 4.53% while the 30-year remained flat at 29/32 with a yield of 4.82%. On the economic front, The Commerce Department said personal income rose a better-that-expected 0.5% last month as compared to the 0.4% rise in June. The Chicago Purchasing Managers' Index rose to an unexpected reading of 53.8 from 53.4, exceeding the consensus. The University of Michigan's consumer sentiment index didn't fair as well as it dropped to a worse than expected reading of 83.4 in August from 90.4. Now, the highlights for Friday! But before bringing up the high points of the speeches here's what some individuals thought of them. Robert Pavlik, chief investment officer with Oaktree Asset Management felt that the President's proposed solutions were 'not really the answer to the subprime issue that's out there'. According to Pavlik, 'Too many people have bought homes that they can't afford. (And) It's hard to protect people from themselves forever'. As for Bernanke's speech, Paul Mendelsohn, chief investment strategist with Windham Financial said that it had not exactly address the issues in terms of policy. According to Mendelsohn, Bernanke made no commitments as to what the Fed's next course of action would be. And that was what the market was looking out for. In his speech, Bush noted that the subprime crisis was considered the lesser of two evils when compared with the entire U.S. economy. But, he encouraged mortgage holders to use the Federal Housing Administration by urging them to refinance. However, Bush emphasized it is not the government's position to provide a wholesale bailout to all borrowers and promised to penalize predatory lenders. While the President's plan did lessen the pressure on Bernanke, the central bank's chairman re emphasized that the Fed is still ready and willing to act if needed. But both speakers shared the view that a widespread bailout will not be coming. Bernanke shared that if the mortgage markets continue as they are, it could bring about implications for the broader economy. He added that with the current situation, the Fed considers recent economic datas to be less useful in gauging economic activity and inflation. According to him, this would increase the uncertainty surrounding the outlook, and policymakers have to rise up to the challenge in managing risks to their growth and price stability objectives. |
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