Business

What’s behind 10,000.
by Milota Sidorova

Dow Jones broke the 10,000 level. For traders on Wall Street it was a sign to open champagne bottles and media went mad for that number. Ok, I could mention dozen of smart and important business and economic people who suggested that this was the pop of the bubble, that the crisis was over and everything should be only better. But I won’t do it this time and I am sure you’ve had it enough. Besides, these quotes always change as the market change – it’s just because the wonder growth didn’t stay upon solid base. There’s no stable social situation, neither declining unemployment nor consumer spending and industry well. The movement was ! caused by professional investors riding the market, so once again, the rise came due hedge funds business and bonds. Yet, individuals remain reluctant to enter the business again – there’s not a promise indexes will sustain with the current flow. The second important thing about the 10,000 level is the psychology. The news generously accented by media will reach the public, the mass. And there’s one true saying – tell the lie hundred times – at the end it will become a truth. At the end, 10,000 level (although without a solid back up) can create an atmosphere of getting well soon. However, listening to some wise and important businessmen one thing remained in my head. The point is to make people buy, spend and invest more. Therefore the illusion of positive condition is essential. The financial sector is doing well. Unfortunately the change for better days remains a future for the other sectors. JP Morgan as one of bailout fed institutio! ns is now 197 percent higher than before the crisis. Bank of A! merica, fed as well, is up 492 percent. Does it need a comment?

related story (sgx15625): http://news.yahoo.com/s/ap/20091014/ap_on_bi_st_ma_re/us_wal...

by Milota Sidorova 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 @ 1:07 PM