Stock market back on its feet after last week's whirlwind

The stock market knew a calm day last week after a very turbulent week. But the investors were still waiting very nervously for more news about the US governments emergency plan to invest $700 billion, to take over the mortgage debts held by banks. The investors are relieved that the US government is taking action, but they are uncertain about how successful the plan will be.
There was also good news for hundreds of workers at Lehman Brothers in London. There were reports that bidders are interested in taking over parts of the Canary Wharf-based investment bank. The administrators of Lehman brothers in London, PricewaterhouseCoopers, are also demanding the return of $8 billion, that was transferred to New York just before the bank’s collapse 2 weeks ago.
But next to the good news, there was also some bad news for the real economy. For example, the asking prices for homes fell one per cent this month. There was also bad news about the fixed rate mortgage rates, these rates could raise by as much as 0.25 per cent this week in a reaction to shocks on the stock market. This could bring a stop to the recent trend of falling rates.
British analysts say that the measures taken by several governments appeared to have stopped the panic and it seems that the stock market is restoring itself. But there are still some factors that haven’t gone away, such as the slowdown in the US and UK economy.

In my opinion it seems that the stock market is restoring after a very difficult and turbulent period. I understand the uncertainty of the investors about the US governments rescue plan. Will the investment be enough to restore the financial market? I think the plan is a good solution on a short term, but it is not a solution that deals with the structural problems. But the plan gives the US government more time to think about a solution that can work on a long term. The good news shows us that the actions, taken by the several governments, are helping the banks to proceed with their activities. But I think it is necessary that the financial world and the governments need to communicate more.
The stock market is restoring but the problems in the real economy aren’t solved yet. I hope that the governments use this moment of rest on the stock market, as an opportunity to look for a solution to help the economy back on its feet.

Source: Daily mail : Stock market back on its feet after last week's whirlwind

http://www.dailymail.co.uk/news/article-1059515/Stock-market-feet-weeks-whirlwind.html