The Dow went down to another (almost) 100 point fall this morning (Singapore time 3am). It seems quite disheartening but yet its not that bad.
The Chairman, unlike Greenspan, did say that the mortgage crisis in America wasn't spreading to other parts of the economy.
But he did insinuate that inflation was still a cause for concern - dosing hopes for a rate cut.
The market closed at 97 points although it did manage a good rise earlier.
I'd say it went down just plainly due to unhappy feelings by some investors. The economic situation is still the same.
Nonetheless I hope that the US will do something about its fuel energy consumption. I find it bloody ridiculous that people like Al Gore and his host of celebrities can talk about global warming - but yet drive SUVs, live in massive mansions that consume a lot of energy.
The answer is simple. They need to lower their dependence on fossil fuel. The oil and gas isn't going to last forever, so in the meantime we better try and find a sustainable solution for our energy needs.
Anyhow I digress. The market should close stronger tomorrow. The situation is still the same. The US economy will grow moderately (God knows why). Rates will not rise esp. due to the depressed housing market.
Next week, on the other hand, is any one's guess. The situation with Iran is tense. And I doubt they will comply and play reasonably any time soon. It is quite unlikely that they will hand over the British sailors because it will make the leadership look weak in the eyes of their supporters. Britain will try other avenues to get back their sailors without looking cheap. Hopefully, a peaceful compromise will be resolved- nonetheless it will take time, months probably.
So in the meantime, prepare for a bumpy ride.