Just one month ago, on July 13, the U.S. Treasury Secretary Henry Paulson revealed a rescue plan for the two struggling companies Freddie Mac and Fannie Mea. At that time it made calm the market and brought confidence in financial system.
However his today's comment from Beijing could have different effect at least on the dollar. According to Bloomberg, he said that "we have no plans to insert money into either of those two institutions'' and he added that their earning result were "not a surprise".
Reminding the magnitude of the housing slump he said "we have got some serious issues that we're dealing with in our economy'', "I believe it's going to take us well beyond the end of the year to work through all the housing problems."
I think such comments could to some extent revive concerns about the health of the economy. But to what degree it could affect market in a daily-basis is a matter of experience.
August 10, 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment