Thursday, August 13, 2009

Factoring the keypoints

Lets have a specific perspective on how the "cost will take action" after the recession ends. it is referring to interest rates and yes it cost you a super controversial situation before you can decide to do risk profiling.
Increasing interest rate is a process to build back economy performances.

To get rid of sleestaks,before gov can even increase the interest rate:
all this factors must be confirmed which are: 3 + 1

1.automotive - NOT YET (cash-for-clunkers is helping but there is a paradox)
2.manufacturing - by dean maki, chief u.s econoist at barclays capital, the manufacturing recovery is happening now.

3.housing or property - NOT YET, BUT SALES INCREASED DUE TO LOWERED PRICE OF HOUSES. IT REALLY DEPENDS ON THE CONSUMER CONFIDENCE, WHICH RIPPLE EFFECT IS RESULTED BY THE EMPLOYMENT LEVEL AND LOAN INTEREST BY MORTGAGE BANKS.

4. NFP, income, and job.
the most important indicator that can tell you where the economy is going in the short term is
the CONSUMER CONFIDENT FIGURE because it contributes to 2/3 (two-third) over the economy performance.

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Notice this too, there is one condition we need to be cautious.
Too high interest rate is not good; for the borrowing cost for manufacturers>low profit&earnings>stock drop, = speculators will simply short in no time and get out of the market before you even know it. Retail can't afford to shop at a high rate cost. Consumer confidence will not be there with you.
Too low interest rate is not good; for ROI especially will be eaten by inflation. Investor will run away for knowing the waste of investing in such country.
This sounds super basic and idiot but it really help some of us.

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