Wall Street remained tense as fears of global recessions are on the loom. Even Fed policymakers are saying the economy appears to be in a recession. Investors examined data and looked for clues on economy as Dow Jones was down 380 at one point, rose more than 400 points in the final hour of trading.
Even with government intervention to calm market down it is unclear what Bush administration will do next. Report on earnings showed negative signs and this season many customers most likely would stick to their budget or don't spend money at all. This leaves retailers in red mark for upcoming season.
Investors don't know yet how economic turmoil will turn out, but today clearly there were more buyers coming back to market. Better than expected news from Labor Department on consumer prices send Dow Jones higher.
Wall Street is expected to remain volatile as investors are either cashing out or remain in market for short term.
Federal Reserve Chairman Ben Bernanke left the door open for another rate cut saying that inflation pressures are moderating. Market is worried about the whole international economic downturn. The market is suffering from weak retail sales report, rising unemployment, tight credit and slumping home prices which shows substantial further deterioration.
Earlier, when government announced it would be pouring $250 billion into bank stocks market seemed to turn around from big looses. However; banks posted quarterly losses due to credit related troubles. Citigroup lost $2.8 billion in the third quarter, while Bank of American posted $5.1 billion loss.
Banks loss of money not only comes from borrowing loans but as well now troubled credit card crises as more borrowers simply cannot repay balances. After mortgage and home equity loans, next tight rules will come for credit cards.
For consumers there is no equity in homes and so they rely on their credit card balances to pay for living expenses. Consumers hit their limit and once the limit is reached in most cases consumer will walk away from credit card leaving unpaid balance.
However, the amount of credit card debt is currently smaller than mortgage debt. There is approximately $1 trillion of unpaid credit card and over $14 trillion of mortgages. But credit card debt is piling up.
In this case credit card issuers can tighten their underwriting standard, as they have time now to prepare and reduce debt quicker than compared to mortgages.
Tighten credit will help credit card issuers but it will limit on number of borrowers. People are spending far more than they earn and this will have an effect on economy.
There will be many rejected applications; many customers will be maxed out as new credit will become tighter.
The new economic reality will bring some ups and downs on Wall Street and as Ben Bernanke told the Economic Club of New York on Wednesday ?Stabilization of the financial markets is a critical first step, but even if they stabilize as we hope they will, broader economic recovery will not happen right away."
Writing an eBook on your area of expertise will be one of the best ways to make sure you are financially secure during the global recession that is now underway. You can write an eBook very quickly and without the time and expense of self publishing or waiting for a traditional publisher to decide whether or not your work will be made available to the world. With an eBook, you are in complete control of the entire process.
The first thing you will want to do is to research your topic. This will ensure that there are thousands of hungry prospects who are ready to purchase your information once it has been written. By learning about keywords and how to use them, you will be able to write your eBook in such a way that you reach exactly the people who want and need your expertise. Doing this research is extremely important so that you can make some small changes during the writing process to ensure that you attract the people who will benefit from reading your eBook.
As you begin writing, be sure to organize your ideas and information info an outline. I compare this to moving from one house to another. You want everything that belongs in the kitchen to go from the kitchen in the old house to the kitchen in the new house. Writing your eBook works in much the same way. Transfer the information in your mind into the chapter where it belongs and your writing will be organized in a logical and sequential manner. This makes it much easier for the reader to follow your line of thinking.
During the Great Depression in the United States during the 1930's, two areas continued to do very well. One area that flourished was the movie industry. People went to the movies more during this time than at any other in previously recorded history. They were seeking a temporary relief for their personal and financial problems and the movie theaters were their great escape.
The other business that did well was how-to books. People were searching for new ways to make a living and to do business, as what they had known slipped away from them. Writing an eBook explaining how to do whatever you are knowledgeable about will do the same thing. You can bring people hope as you teach them what you know.
Write your eBook now and be part of the solution to the global recession that is now reaching and affecting all of us. Your writing holds the key to the change we need to ensure a stronger future for ourselves, our friends, and our family.
Both Ratetake & Connie Ragen Green are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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