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Yesterday the American Markets Sat up and Froze up in Waiting for Tomorrow

Yesterday the American Markets Sat up and Froze up in Waiting for Tomorrow
01.10.2008

The share market in the USA was closed by appreciable growth. On results of tenders on September, 30 index Dow Jones grew on 485,21 points (+4,68%) - up to 10850,66 points, index Nasdaq - on 98,60 points (+4,97%) - up to 2082,33 points, index S&P grew on 58,32 points (+4,97%) having made 1164,74 points. It is the biggest growth of exchange parameters for six years.

On the eve House of Representatives of Congress of the USA rejected the bill about repayment from the market of problem hypothecary actives which provided allocation of 700 billion dollars on buying up of those securities. However within trading day hopes for acceptance of the plan of economic rescue appeared again that positively reflected on the cost of shares of the largest financial companies. Securities of J.P.Morgan rose in price on 14%, Citigroup - on 16%, Bank of America - also on 16%. Listings of Goldman Sachs Group Inc. grew on 6,1% and of its competitor Morgan Stanley - on 9,6%.

- All the same one should be the hopeless optimist to consider correction after enormous recession the way out from crisis, - editor-in-chief of FORUM.msk Anatoly Baranov noticed. - The reasons of crisis remain as they are, markets are influenced with all same pernicious mechanisms. Yes, the same day Bush made public encouraging speech from which it was possible to understand that "Polson's Plan" would be all the same accepted by Congress. However by having given out 700 billion dollars of flat money to banks won't be possible to liquidate the reasons of crisis - in some months banks will "eat up" them and will ask more. It's difficult to forecast sizes of inflation at such way of struggle against crisis. As Bush's administration will distribute flat world money, stabilization of the American banks will be paid by all planet. Naturally, the Russian market will feel all charm of crisis very soon as known Russian economist Michael Deljagin noted, world crisis will be overlapped by own problems and it will be quite a thing. Actually, on TV he pronounced f-word which very precisely characterizes prospects of the Russian market - precisely but unprintable. I won't take a risk to pronounce it - we already had problems with our exact but not always printed estimations...

Financial crisis in the USA speaks about collapse of "capitalism of the free market". As agency Associated Press informs, such opinion was stated in conversation with journalists by the president of Venezuela Ugo Chaves. Earlier U.Chaves criticized plan of the USA on maintenance of economy. He also expressed opinion that the president of the USA George Bush "has no exact representation what's going on". In U.Chaves's opinion, the economic is "in condition of risk" and ordinary citizens have the right "to demand the answer".

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