Pakistani troops may fight against Taliban but can never take on the stocks
Archive for April 2009
Rates of money market is falling down, my fair lady!
It is no longer just the London Bridge that has been falling down but the money market rate as well. Since the month of April started, there has been a great decline in the rates despite of the different signs that the financial institutions such as the banks are now trying to lend funds to each other (one of the signs of economic recovery according to the analysts).
For 44 consecutive days, the interbank rates have been dwindling. On the other hand, the rates for the US dollar have been dropping for more than 20 continuous days while the rates for Euro is already on its fifth day of rate diminution as well.
A billion dollar a day makes recession go away
CNN recently had a very interesting regarding the stimulus package that President Obama signed in order to help the distressed country.
According to the article, the federal government already allocated as much as $75 billion for the different projects covered by the stimulus package.
As of the moment, almost $15 billion has already been spent for the health expenses particularly with the Medicaid related operating costs.
From the analysis of the CNNMoney.com, in can be really quite difficult to spend billions of dollars and spend it immediately for the good of the economy. Many experts understand the pacing of how the stimulus money is spent. However, not everyone share the same views whether the effort would truly help the economy on its way to recovery.
In order to spend the stimulus money, a billion dollar a day for the different sectors can be spent or at least allocated. Hopefully after a few years United States will be back on its feet and can be considered as one of the most powerful countries again.
Are we really having an economy improvement?
You may have read tons of news and different articles about how the economy worldwide has been falling like an avalanche from the mountain. This makes the ordinary people as well as the investors feel depressed about how they live and how they use their money.
However, there are some studies showing that we are having an improvement in the economy. The figures of the bonds are actually trying to show that having a rally is actually not needed right now and is totally uncalled for.
Yes, the credit spreads have been skyrocketing the past few months. But gradually, it is now decreasing which is a sign that the economy is recovering from recession. Everybody should have some optimism about this. Big changes do not happen overnight. Despite the effects in employment, real estate, manufacturing and in the other sectors, at least we have something to look forward to in couple of months especially now that the bonds are improving little by little.
How are the earnings lately?
There are now hundreds of analysts claiming that they know all about the economy which is very unstable today. With all the appearances on TV and articles that you can read on the internet, you would see that they only say one thing – the economy is so depressed and the it is taking a big plunge right now because of the bad earnings that most firms are experiencing. Unfortunately, most investors, companies, and other firms are not coming close to their desired or expected earnings. Not until these firms can beat the earnings expectations, they will not have a sturdy foundation for their business.
As of the moment, companies think that their time of “rebirth” is about to come. Most of them are now beating the estimated earnings by as much as 60 percent. However, there are still some who can’t catch up to their desired revenues. But the good news is that they are becoming very efficient. They are now cost-cutting and looking for other resources that would not cost a lot and take so much from their company’s budget.
The CNBC actually have records of some of the company’s revenues. You can check it out at http://www.cnbc.com/id/18080780/site/14081545/.