Friday 19 September 2008

US financial crisis

After collapse of Lehman Brothers, now another financial institution i.e. AIG is in trouble. Everyday NYSC index is going down. Big financial institutions are going down day by day. To protect the down going economy US treasury and Federal reserve have decided to inject huge amount of money in the economy. Halting short selling is another step to control the economy. What next? is the main question.
Being the largest economy, it has direct impact on other economy and it has seen overnight. Russian stock has plunged down by almost 30 percent and similar condition has seen in european and asian stock exchange.
To resolve the situation allmost all central bank have decided to inject billions of dollar in the economy. But is it only solution? Even if the answer is yes, government should take care of inflation and negative impact on economy. However major step should be taken to realise bad debts. If this action is taken public confidence will raise in the economy.

No comments:

 
Custom Search