Even though the U.S. Congress has finally accepted the economical rescue plan, the problems are far from over. Consume rates are dropping, and at the same time the number of people currently on unemployment is growing. The European situation, at the same time, is even worse. European governments and banks are depending on the ECB’s ability to lend them money and provide cash to protect them from bankruptcies. The current situation for the dollar is slightly better, but the prospects remain negative.
California in Financial Crisis
U.S. is in the midst of a financial crunch and so is California which felt the squeeze as the Governor Arnold Schwarzenegger sent a letter to Henry Paulson, the Treasury Secretary requesting a $7 billion loan for the state which is required for financing the daily operations of the state. The Governor asked the federal government to release the same in few weeks as the state is in urgent need of the same and was having problems accessing short term loans from bond market in the light of a credit crunch.
Read more...Decreasing Price of Oil
With the tumbling economy the financial market was in need of a relief which came as the fall in oil prices. The bright move in the economy is the decline of 35 % in oil prices which is the most recent fall. The Decrease in Oil prices has had a positive impact on the equity and financial markets as the financial markets gained on declines in crude oil prices. According to Peter Dawson the decline of demand in conservation in the U.S. and the decline of commercial activities with the slowdown of consumption in developing countries like India and China are the major cause of this oil price fall.
Read more...Predicting the future of the Dollar
The United States is undoubtedly one of the most competitive and developed economies in the world. The long-term demographic conditions as well as its fiscal situations are healthier than those of its major universal competitors. Yet the value of the Dollar seems to be tumbling. The main reasons behind the decline in Dollar value are both short term as well as long-term aspects. Some of the main factors for the US slow motion plunge include:
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