Business

Declining Unemployment Rises Investors‘ Fears
by Milota Sidorova

There is an unexpected news coming from American Labor Department. The quote of lost jobs declined from predicted 130,000 to only 11,000. The unemployment reate fell from 26-year high 10.2 percent (October) to 10 percent. Could it be the early hope? There have been signs of recovery in the financial sectors for several months but the others branches economy fell behind. Consumers‘ spending stays controlled and rationalized, though. With the good news from job market the Wall Street stocks soared as well. Dow Jones index gained 1.21 percent and finished on 10,390.11. However, investors are now fearing the Fed could cut up some advantages offered for so long. Acco! rding to Justin Golden, a strategist working for Macro Risk Advisors, Fed was forcing people to take risks. Some analysts predict now it could rise up the loan rates. For several months they were near the zero and now when some indexes meets the general picture (however with no guarantee to stay stabilized) Fed can take more action. Fed can suck more money not even from big banks loans, but also from smaller banks and businessmen who are affected by the loans from bigger banks. More likely it will cut back some stimulation programs before it will rise any rates. The U.S. currency is holding on low rate and however, it’s an advantage for exporters and Americans doing business overseas, it’s is not a proof of recovering economy. It has to go up along with the market for a longer period. However, it is only the Fed that is controlling the strentgh of the green paper, its value and number flowing in the market. So there’s one old saying – All the pat! hs lead to Rome. With a small upgrade we can say that all the ! paths le ad to Fed and Mr. Bernanke’s will.

related story (sgx16072): http://news.yahoo.com/s/ap/20091206/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 @ 12:50 PM