Bloomberg Recession

What would have happened to markets? You could say that, on the one hand, gave its verdict about the bailout approved in the U.S. plan.These USA believe that the same has been belated and insufficient. And if you also consider that it will be operational within a month (for what will be implemented by the next Government), can be more easily understand the pessimism of the markets. Bush himself in statements reproduced by Bloomberg, in relation to the expected impact of the megaplan on the U.S. financial system, said that: will take time to restore confidence in the markets. The President of the United States.UU., made clear with his statements that should not expect an immediate impact of the rescue plan, it would not be surprising that occur new episodes of crisis in the meantime.

But doubts about the megaplan were not the the only factor that has caused such drop in global markets. It can be said that the bad news found no better idea appearing all together. Is that the novelties arising during last week on the health of the European economies that puts them on the verge of recession (of the French economy preliminary data indicate that it is in recession), coupled with the increasingly likely recession in the United States.UU. It has impacted in the international prices of commodities and has generated fear in Asian markets on the possible impact this may have on their economies. On the other hand, the bailout of German bank Hypo Real Estate by 50,000 million euros, and the purchase of the Bank belgo-Dutch Fortis by French bank BNP Paribas, over the rescue of other entities by European Governments, have increased fear in the markets about the health of the rest of the entities that make up the financial system in the countries of the region. Added to this was the instability generated by uncoordinated actions between the countries of Europe, as it was the case in Ireland and Greece increased its deposit guarantee when none of the remaining European countries had done so.