On Jan 17 the Dow Jones industrial average plunged 306 points , a 14.2 percent slide from its all-time high in October 2007. Some see it as clear sign of eminent recession. This sharp fall has taken place depite confidence expressed by the chairman of the Federal Reserve to Congress on Thursday that a recession can be averted.
Subprime problem has another casualty yesterday in the form of huge fourth quarter loss of $9.8 billion by U.S.A 's largest brokerage firm Merrill Lynch. The loss at Merrill, which exceeded analysts’ forecasts, reflected $16.7 billion of write-downs on mortgage-related investments and leveraged loans.
In order to comeout of the situation US policy makers are hinting at a rescue package, details of which are not clear yet. But possibly the package would attempt to leave extra money in people's hand by means of tax cut. The package is expected to include more than $100 billion in one-time tax rebates for individuals and an opportunity for businesses to rapidly write off their capital investments.
Subprime problem has another casualty yesterday in the form of huge fourth quarter loss of $9.8 billion by U.S.A 's largest brokerage firm Merrill Lynch. The loss at Merrill, which exceeded analysts’ forecasts, reflected $16.7 billion of write-downs on mortgage-related investments and leveraged loans.
In order to comeout of the situation US policy makers are hinting at a rescue package, details of which are not clear yet. But possibly the package would attempt to leave extra money in people's hand by means of tax cut. The package is expected to include more than $100 billion in one-time tax rebates for individuals and an opportunity for businesses to rapidly write off their capital investments.
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