: Http://finance. United States stock Tuesday built, pull up a 130 points, mainly benefit to share God Buffett's announcement. He is a United States represented within the financial TV shows, its flagship will cover worth listing 8,000 billion in bonds at all levels. Notes from the underwriting of large debt insurance company, but the time you press storm, these debt insurance companies such as Ambac, MBIA and Financial Guaranty, financial strength affected by market, is likely to trigger another round of bond turmoil. This Buffett's premium, the company is willing to assume the responsibility for the debt-to-life insurance company, in other words these bonds once an accident, Buffett want compensation to bond holders.
Wall Street's investment community believes that this would mean that the chances of an accident on the bonds is very minimal, and at this time given the fragile, Buffett's commitment is to add the stock market.
Buffett shows more shows that most companies ' stock prices have been caught in a reasonable level, in other words the stock price to drop, the representative value. A United States analysts, this does not reflect the stock market will immediately bounced back, because the senior investors see stock price premium, but as long as bearish sentiment day is not reversed, big city will have a soft, but the atmosphere is better.
In fact, as early as last week, the United States announced a series of consumer confidence indicator was sharply, will lead to major US stock shock. This is mainly due to economic recession, retail will bear the brunt, coupled with its negative economic livelihood of the domino effect gradually surfaced, u.s. stocks have been picking up momentum. Since the beginning of this year, more and more data that reflect the United States economic ups and downs of the retail trade, the thermometer is undergoing of maximum 5 years, means that the overall economic landslide prospects with haze. Credit card spending dropped, shopping malls, Internet shopping pedestrian flow. The most disappointing, many consumers use cash gift card to buy daily necessities, reflect cash shortage. The retail store owners, commercial construction and consumer goods manufacturer surprised, this is the livelihood of the critical turning point.
In many large retail chains have announced layoffs and clearance store, Macy layoffs 2,300, Home Depot cut 500 jobs, from Christmas till last week announced the closing of shops are about to 900, followed by many more. According to the shopping centre, the International Department of the United States this year predicting material 5,770 shops closed, representing a significant increase in 07 years 25%.
The massive rise in retail shop, empty commercial real estate and mortgage also greatly reduced, the banks to tighten lending against very heavy. Other such as container shipments, orders reduced significantly; inventory, advertising budget cancelled, electronic media and the press have been unfortunate, is exactly the same negative domino effect.
However, this Buffett's comments, coupled with some great lines are turning to United States, pointed out that the situation is not as aforesaid pessimistic, it seems that the US stock market is expected to hit the bottom.
Of United States experts believe there are three positive factors. First, the United States Federal Reserve Board on March 18, material and then cuts and stimulus programmes 1,500 billion has already been adopted, cheques, this poses a series of substantive recovery process.
Secondly, as United States bear a study recently quoted Morgan CEO Jamie Dimon said: 「introduction The subprime thing is yesterdays news......we are double-counting subprime losses (to the effect that the press is yesterday's news that the time you press the losses have been double calculation). This reflects in part 」 United States the financial community, have started from extreme pessimism to optimism.
The third largest city in the United States, is in decline, the recent momentum of three very prominent technology trends: first natural gas stocks and commodities unit, all the shares, which breaking through short-term resistance and the price of coal and natural gas prices in the near future to pull up relevant; second, Goldman Sachs, big mo, Lehman, etc. larger securities firm stock prices fell, but in the near future are securities index was once maintain uptrend. The third is the semiconductor sector index was sailing and l; semiconductor stocks fell in the recent fall in between, it is the outpost of the rebound. The first trend indicates that the current strong stocks; second trend reflected most bad sectors over intense; the third trend is reflected in the first fall unit (retail, technology and housing) might go.
Therefore, all the signs that we don't take on too pessimistic after city.
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