Trouble at Wall Street by Eva Matova

After last week's problems on the Wall Street there is a serious reason for worries about the subprime mortgage crises and its impact on banks and brokerages. The decline of the market may badly affect the mortgage industry which means that the home foreclosures will worsen. The White House has already promised to help the house-owners to avoid defaults as a plan to hold the interest rates steady for a while is being created. San Francisco Fed President Janet Yellen warned the public that housing problems could "spill over" into consumer spending. That is one of the reasons why the investors are now expecting the November employment record, which may help to indicate the direction of consumer spending, the crucial factor to maintaining economic growth. The economists find it difficult to predict what is going to happen after last week's gains. Lincoln Anderson, chief investment officer and chief economist at LPL Financial Services in Boston, was heard to say that "a market is trying to sort out whether we're seeing a big shift in the economic and investment fundamentals here or whether we're just going to continue to slog along"

by Eva Matova for PocketNews (http://pocketnews.tv)

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