Saturday, October 04, 2008

USD 700bn Rescue Plan

So excited to watch the live telecast of the US House of Representatives voting on the USD 700bn financial rescue plan to the ailing financial sector. Apparently the proposal didn’t convince 1/3 of the congressmen. Somehow the majority has the opinion that measures have to be taken to cease the deteriorating US economy, which threatening globally.

Guess the published economy statistics this week have deepened the worries of some congressmen. Dropping of payrolls, home sales continue diving, climbing of unemployment etc have definitely persuaded some voters shifting their stands.

In fact no one could tell if this astronomical figure is sufficient to revive the teetering economy. I was expecting the US share market would leap high immediately when the news announced. It wasn’t, but pointing downwards? I couldn’t understand why.

Personally I doubt this decision would improve the status quo, I do think it would ease the breath of financial institutes. But how long would the effect last? The speculators would be please to learn that fresh capital to be injected into the market and it’s a great opportunity to gain fast money again.

What I hope is… the share market would stabilize to save my investment.