“You can have green sprouts, or whatever you call them, can have a temporary relief, but still in a world that is breaking. We are in the midst of the crash. So if I have to predict something, is that this will be worse, not better. ” Economic indicators in United States although some are still not as negative and very weak activity in the fall of Asia, in Europe in global trade remains strong. It is believed that the worst had passed and that the U.S. economy is reviving. Yesterday, these optimistic figures of 9.5% unemployment in the U.S. returned to reason. Some came out slightly positive indicators in recent months, but in obedience to the incentive plans and financial institutions. The injection of funds to the system has caused this rise in the markets. It was a breath of fresh air in a landfill. There is no way out of crisis, but a transfer of liabilities from institutions in trouble to the government and taxpayers. Many companies with high debt levels or are in sectors such as real estate or beaten credit must get rid of less profitable units or heavily in debt if not intended to disappear.

From the Obama stimulus plan of $ 780,000 million, signed in February as the economy takes more than 2 million lost jobs. Who will banks give loans if people lose their jobs and make businesses less?
When yet to elucidate a number of unknowns in the situation of financial companies, a movement similar rise on Wall Street can not answer more than speculation. The financial sector remains the most volatile, and where it is going higher turnover, the shares gained more than 100% in just 2 months. The benchmark of the financial sector ETF, Financial Select Sector SPDR Fund (NYSE: XLF) rose from a low of 5.88 on March 6 to a high of 13.07 on May 7 this year, representing a rise 122%. Fundamentals ¿? We recall that this starts with the letter sent to internal Pandit at Citigroup employees, as described in “The postman came and saved Wall Street”

We will see a significant drop in world stock markets. The market sentiment is beginning to change lightly. Wall Street is not taking the good news with the optimism of a couple of months ago, and bad, as the rise in unemployment from 9.5% yesterday took the disaster as it is. U.S. stock indices are lateralized in the last 30 days. When the effect dissipated megasalvataje achieved without attacking the real causes that led to this crisis, the oasis in Wall Street and with decisive force disappears.
For fans of technical analysis, training is a Head-Shoulder-Shoulder in the S & P500, the second shoulder in training, and close to touching the neck line in the area of 895-880 points, and if the figure is respected, the index should break the neck line, and go to touch the area of 800 points as the minimum target (projection distance of head-neck line). The same picture is being repeated in both the Dow Jones Industrials and the Nasdaq. I asked a journalist on the Financial Strategy of Chile what actions I liked this particular moment, and I said: The actions that I like are those that have strong potential for growth through developing new products, or discoveries that have taken this crisis and global resources to streamline costs without losing productivity. And some of these actions I have recommended here.

Recessions, as opposed to economic expansion, people are able to focus and balance their customs and cultures away from the excesses. The same applies to companies that remain in time. Purified recessions. Lessons are learned. The deleveraging has yet to begin because the causes of the financial and real estate debacle has not been solved, or sound through increased activity or growth, but have simply changed hands. The global effects of this crisis have not been deployed to its full potential, there was a positive reaction to the temporary government stimulus plans, when their effect is diluted, the world will remember and accept that in a crisis. Careful, this is not just an economic but also psychological. Not attacked the real problem of the crisis, attempted to cure the symptoms.

A few years ago when I moved into an apartment with no central heating very old, I bought an electric stove for those cold days of moving. One day, the stove was on fire and got to throw a blanket before the fire to continue ruining the floor. I fixed the floor and of course pull the stove to avoid the small fire that was generated (and probably extend it). Speaking of floors, Wall Street did not come until they begin to see signs of a sanitation system. And for that you need more than just throw a blanket.