• The post you are reporting:
   
  Well we have seen the Senate vote for the rescue package and now it will go back to the House, slightly amended. Let us hope good sense prevails, I agree that this is far from perfect but only when the immediate crisis is dealt with can things move on and we can start picking up the pieces.
  
  The UK market has responded strongly and, as it stands while I write this, much of the losses from the immediate aftermath of the House rejecting the package has been recovered.
  
  I believe that if this passes we will see the market recover a lot more of the ground lost recently, barring another shock.
  
  Anthony Bolton has said that the bear market is in the last stage and I do believe that the passing of this bill could see a more prolonged recovery in the markets next year, even though it will be a difficult year and our economy will almost certainly slide into recession. Unemployment is likely to rise over the next year because of the recession. Inflation, however should fall back and interest rates should respond by falling. I would expect a resurgence though of inflation in 2 years time or so due to money supply issues and there will be a need to reign back on this, perhaps tax rises and certainly Government spending cuts will be needed before things can get better.

Report Post

Your Name

Reason