Back to earth

After the Dow Jones Industrial average reeled and ended with its worst beating in a single week, investors sighed in relief with the composite rebounded for over 900 points on Monday. For the first time in a long while, people got positive news out of Wall Street.

Central banks all over the world coordinated their actions never seen before and the investment community saw it as sign that the economies are starting to recognize the scale of this crisis. For a moment, everyone taught it was the end of the rabbit hole. It seems now that they are mistaken.

The Dow went back to earth again last night as it ended in negative territory although not as brutal as last week’s numbers. The idea that the United States can not avoid a recession is now starting to sync in among the public. The Bush administration is offering the public solutions almost on a daily basis and people are starting to ask what lies ahead after government will run out of tricks.
The recently approved $700 billion bailout package is now in action but concrete results are yet to be seen. Anyway, the government already made it known that the effects of the bailout would take time to kick in.

The Philippine Stock Exchange rose substantially following the lead of other emerging markets on Monday but expected to stay on the sidelines now the US markets are starting to send mixed signals once again. Still, there has been limited coverage of the global financial crisis in the local mainstream media. Congress will be back in session soon and it is interesting how would our elected representatives will respond to this crisis in the midst of another impeachment attempt against President Arroyo.