Economy has weakened, says the Fed!

Now that is something most of us have known for quite a while but to actually have Bernanke, the Fed chairman say those words in a public meeting is something that must have sent shivers down the backs of every single trader in Wall Street. The fact of the matter is that consumer confidence is really low these days and no matter what rebates the government offers, it is staying really low.
One can blame it on the Iraq war or on the state of the economy at large or on the mortgage and sub prime crisis, but whatever you do blame it upon, the reality is that for the moment anyway, the consumers are following the banks. By that I mean, that they are holding very tightly onto their purse strings. Will the confidence come back? It will, without a doubt, but the only thing is that it is going to take some time for that to happen.

America spends more!

The U.S stocks went up as a result of buoyed consumer spending.the consumers were spending more and more and as a result of that the Retails reported good profits.and as a result of the retail reports,the U.S stocks got quite a boost and saw the stocks react quite well to the news that Americans were spending more and more.in spite of the pressure on the U.S dollar against the Euro and the Yen,the American economy seems to be recovering quite well.this may also well account for the high price ranges for the Dollar-Yen trades trading around 122 to 123.
And the weakness that is perceived in the U.S economy still persists but it is the very fact of over spending by the U.S retail consumers that seems to have given the U.S economy a breather of sorts.of course the critics are calling it the 'calm before the storm' but i would much rather go by the saying 'do not look a gift horse in the mouth'.but the overwhelming opinion is that the current mood of optimism may not stay around for long especially with the housing market in the slumps and the economy burping along.so lets take a wait and see attitude as regards the U.S economy but if the consumers were to continue their spending spree well,the future for the U.S economy may well be bright!

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