Business

Consumers could heal the economy
by Silvia Szarkova

This week brings a cruel and sad milestone: Tuesday is going to be the first anniversary of the collapse of Lehman Brothers, which has been the largest bankrupcy in United States history and which definetely highlighted the financial crisis. to comemorate and somehow moralize this event, President Barack Obama made a speech on Monday from Wall Street to explain the government attitude to the crisis. Generaly, this month is important also as the last month of the third- quarter of 2009. “ The market could take a breather before third- quarter earnings reports, “ thinks Peter Cardillo, chief market economist at New York based brokerage house Avalon Partners Inc! . Starting the first week of October, companies are going to finish their results for last three months. Wall Street wants the consumers to heal the economy and is trying to make them spend their money, as their part of a job in the process of recovering the economy. August retail sales government report released on Tuesday should reveal how much are consumers spending, and according to Discover Financial Services report investors will get know how much they borrow for purchase from this credit card lender. Experts say that investors need to see that consumers are really spending money, before their start to invest into projects and will extend their recent gains. And according to the University of Michigan consumer confidence index, consumers are improving their views- both current conditions as well as the expectations towards future. But there is still a main fact, which means the biggest disadvantage- the rate of unemployment, which jumped to 9.7 percent in Augus! t, the highest level since 1983. This makes the biggest pressu! re on co nsumers as well as to investors and further depress their spending.

related story (sgx15356): http://news.yahoo.com/s/ap/20090913/ap_on_bi_ge/us_wall_stre...

by Silvia Szarkova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 3:39 PM