Global Bank Bailout Calms Markets — For Now
Time needed to fix credit crunch fallout.
Bryce Knorr
Published: Oct 14, 2008
Some of the gloom and doom that's pervaded global markets this fall began to brighten a bit this week. While the financial fog is lifting, it's revealing some cold, hard truths about the road ahead.
For one thing, world growth is slowing, how much, nobody knows at this point. Fallout from the credit crunch will take time to fix, even if the solutions proposed this week work. Purchases by consumers and businesses were put on hold due to fear or lack of credit, and the holiday shopping season looks fairly bleak. The GM plant in Janesville, 25 miles away from me, will close two days before Christmas, rather than in 2010 as planned, due to cratering truck and SUV sales. The effects of similar events are rippling through the economy, with unemployment and earnings reports in coming months unlikely to inspire confidence, despite the record rally on Monday in the stock market.
The market will watch several benchmarks for progress of the bank bailout. To read Bryce Knorr's complete weekly financial review, click HERE.
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