Current Event Stock Market

Tyra Monger
12/19/08
Business Economics

Current Event

This week I read about the Wall Street ending lower after the rate cut. Investors were shown a 0% interest rate. The stock market has dropped about one third. Stock markets were way high on Tuesday after the Federal Reserve made the interest rate down to a record low of zero to 0.25 percent. It was lower because traders were cashing out their profits. “It’s still a tug of war between the bulls and the bears,” “The bears are saying, ‘I want to take profits when they come my way,’ and yesterday they came in a big way,” said Sam Stovall, chief investment strategist at Standard & Poor’s equity research. The dollar fell against other currencies because investors guessed that the Fed’s debt bail-outs and interest-rate policy would make dollar very weak. It was a 13-year low compared to the Japanese yen on Wednesday.

We are kind of in trouble with the bail-outs. We need to stop bailing everyone out. It is getting to be too much. We are already in debt to so many countries. Getting out of that kind of debt is very difficult. With the o% interest it is not going to be making much money. Money is not what we have much of right now.