Rough times for Wall Street by Claudia Sonea

The stock market is very troubled lately, although last week meeting of the Fed should have improved things by keeping the same rate and announcing that the only problem is the inflation. Investors are still anxious due to the subprime mortgage-related losses. If Fed's actions will not succeed to put an end to the issue, what will they do next? No one really knows how widespread is the problem and therefore how long it will take for the credits to become more available. If credits are unavailable then companies' growth will be stunt and mergers and acquisitions will be pruned. Moreover, debt financing is harder to come by. Since the Dow Jones industrial average hit a record, the stock market has swung up and down because the lending climate is still unsure. The Chicago Board Options Exchange's volatility index shows that stock market volatility reached its highest level in the last four years. In order to give lending a boost Wall Street together with Europe's and Japan's central banks made a large injection of cash. The chief economist of A.G. Edwards & Sons Inc, Gary Thayer, said that it is a matter depending of the investors' mentality too, so the results will be seen in the course of events and not immediately. Statistics are divided in two, some say that a rate cut would free up more cash, while others say housing market is destabilizing economy. However, a credit crunch could put an end to a lot of business all over the world. Stay connected to find out the truth and how stock will spin.

related story: http://news.yahoo.com/s/ap/20070812/ap_on_bi_ge/wall_street_s_angst;_ylt=ArtQhRHm4bdYDPS0D1.8DlCs0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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