Bear Stearns sold for 240 millions USD

The American investing bank JPMOrgan Chase agreed to buy Bear Stearns for 240 millions USD, which is nearly 90% form irs price from the previous week. We can remeber, that the investing bank Bear Stearns was hurt a lot from the mortgage crisis in USA and is in front of the bankrupcy. In Friday afternoon, the financial markets broke after the news for bankrupcy of the bank, which cannot pay its engagements.
The shareholders of Bear Stearns will be compensated with shares from JPMorgan, and for every of their share they will get 2$. Just before the Friday news, the shares were at prices of 55-60 USD, and for the previous year the price was over 100 USD. It is expected that Federal Reserve will finance the transaction, and also 30 billions USD for supporting the licvidity of the bank.

The economist from UCLA about American recesion

American economy will get narrow in the final part of the year, but will not go in recesion, because the crisi in mortgage sector will start to go out in the second part of the year. Finally, the economy of USA will turn back into its normally features and will continue its development, commented the economist from UCLA in Reuters.
"The economy indexes are weak, but still are not allowing us to announce the beginning of the recession", commented they. "Out prediction for running away from the recesion this year are staying in power", continued the economists.
The decrease of working places in the country is normal, if we have in mind tha restricted development of the economy, but this still means, that recesion is fact. The user requesting has a delay with moderately values, again because of the crisis in the mortgage sector and weaker dollar.
Today, the people are just leaving their homes, because the price fell too much and they are not good invest. They stop paying of the mortgage, but keep their work and go ahead. So today, the problems with property sector still are going so easy to the users, as in the past.

Trade loss in USA for January with top levels

Trade loss of USA in January was record , but even exept of that it was lower than the predictions. This was mostly because the weak dollar had growed itself to top levels. Together with that the income also growed to a top levels, mostly because of the expenssive petrol. In december the deficit in the USA was 57.9 billions USD, and in January it had growed with 0.6% to the value ot 58.2 billions USD, signed from the Trade Ministry.
The decrase of the USD and connected with this selling increases of the foreign markets, including Asia, compensated a little the decrease of the production of American factories, while the loss of worling places is linked also with perspectives for lower users outcomes, wrote Bloomberg.
In the economy of USA, which maybe is already in recesion, the export is staying one of the good moments.

U.S. Treasury increased in Friday

The prices of American U.S. Treasury increased in Friday (the profitability fell down), after the serial affraids around the credit markets and weak datas for shortened 63 000 working places in USA for February - the largest decrease of employment for five years.
After these bad datas, the profitability of 10 years U.S. Treasuries broke to 3.483%, but after that partially turn back places because of the news for two auctions on value 100 billions USD given of FED in March with purpose to increase the money value. The profitability of 10 years Treasuries closed in Friday with 3.541%, which is still a little bit down from the closing in Thursday.
The profitability of 2 years U.S. Treasuries finished the day with 1.53% after the fell of 1.5% earlier in the day.

USA in recesion according to American analyzer.

New working places in USA in February are with negative sign for the second serial month, and so they are making harder the speculations of the market, that the economy is in recesion. The working places in USA had decreased with 63 thousand in the previous month, which is the hardest monthly decreasing from March 2003. We will remeber that their number decreased with 22 thousands in January, and the expectings for today were in increasing direction. The news are a little bit possitive for the decreasing with unemployment of 4.9% with 4.8% in February, which is explaining the fact, that many people had refused to seach for a job.
The weaker market of the employment together with the weak presentation of the real estates, the higher price of the petrol and fuel and high interest levels of mortgages will bring to user's quest. The missing of new working places is the basic index, which FED is watching at the moment and decided even to take a new interest decreasing. After today's datas, futures' market in Chicago is rating to 100% the possibility of interest dcreasing with 0.50% on 18th March.
"All indexes had a red light", commented American analyzer in front of Bloomberg. "We are definitely in recesion already. I don't think that there is someone, who is not understanding this", continued he.
Just minutes before the showing of the report, from the Federal Reserve told, that they will increase this month credit auction to 100 billions USD in previously announced 60 billions USD.

ISM service index going up in February

The ISM index for activity in the sphere of services in USA in February is 49.3 points, and in January it was 44.6 points. The activity in the sector had growns after unexpected hard narrowing in the begining of the year. When the index is 50, it is on the border between expansion and narrowing of the sector, in which there are many datas showing increasing.
In spite of the general index shows a narrowing, the index of the business activity had grown to 50.8 points, which shows expansion in comparison with 41.9 points in January. The January narrowing of the leadingindex is the first from March 2003. According to the report of ISM institute, the financial sector is going to repair from its stability after the crisis made by the Tuesday's mortgage market. The report also shows, that the inflation pressure is getting weak in the sector of the employment, where the index of shares is decreasing with 67.9 points from the level of January 70.7 points.

Bernanke tried to convince the bank industry to remit some mortgages

The Federal Reserve is getting closer with its desires to help of stressed real estates owners and mortgage creditors, started its issue New York Times. The director of FED, Ben Bernanke told in fron ot some bankers in Florida, that "may and should to be done something more", to help to millions of people, whoes mortgages are getting bigger from the value of the property, which they are living in.
Bernanke stopped a little before asking the government for help, but tried to convince the bank industry to remit some parts from many mortgages. The president of Central Bank of USA expressed his apprehension, that market forces will not be enough, to prevent wider market disasters
Bernanke offered Federal property administration to get wider its own helping program, to that much more people to go from expensive subprime mortgages, to federal guaranted credits.

No change in economy raising of USA at the end of 2007

The economy growing of USA for the 4th quarter of 2007, is not reserved on yearly base from the level of 0.6%. The main reason for its delay is the crisis in the sector of real estates and hard decreasing in the stock reserves. The growing of Gross DomesticProduct is weaker in the the previouly expected of 0.7% on yearly base. For the whole 2007, Gross Domestic Product of USA is not reserved on 2.2%, which is worst presentation from 2002. The economy analyzers are predicitng almost sure recesion of USA this year.
The import in the 4th quarter of 2007 decreased, and the decreasment is about 10.1 billions USD in first datas about decreasing of only 3.4 billions USD. The investments in real estate sector decresed with 25.2% per year, which is the hardest decreasment from 1981.
The problem with property market, which brought the world credit crisis in the end of 2007, made FED to decrease the interests with 2.25% from the begining of September to the end of previous month. The director of Federal Reserve - Bernanke, told that the risks in front of the American economy are still strong, while the inflation had decreased with 4.3% on yearly base in January.

Bernanke is breaking Asia economy

The chief of Federal Reserve - Ben Bernanke, now is the main reason for turning back of asians economies to the centralized state control, commented Bloomberg. Under the rule of Bernanke, the American Central Bank made its stronder interest decreasement from 1990, which restricted the opportunities of Asians economies to act versus inflation. In stead of increasing their own interest level, to decrease the efect of price preassure, Asian governments should freeze the prices of some basic goods.
China now restricted with law the price of meat and eggs, in Indonesia and Filipines, the state will give subsidies for homes and business. This can bring some negatives for the economy.
"Returning the state control, will be a step back for China, who long years is trying to redirect its economy to free market system", commented analyzer from Fitch - Hong Kong. "Price control will not work, because it is not solving the problem, and only make symptoms easier", continued he.
The part that Bernanke took in Asian problem with inflation, is in the fastest decreasing of interest levels, that the banker did. Just for a quarter of year he decreased the interest level from 5.25% to 3.00%. Growing interest diferencial, brings to large income of forein invests to developing markets in Asia, which may be a sign for inflation top and hard economy consequences. In this way the Central Banks of China and India can do nothing, because if they increase the interest level, fighting the iflaion they will take more foreign invests in the country.