The revised rescue plan will be approved by congress!!!

So far we have learned that U.S senators had majority favour voting for the revised rescue plan on Wednesday. The vote count: 74 for/25 against. However, the approval then was not "over" cheerished by the financial market. At the monment, the market and almost everyone is awaiting for the voting in the congress house which is set to took place at friday night(est).

On thursday,(yesterday) every pieces of disclose economic data mostly from US and Europe shows negative economic development. U.S congresses will have to pass the bill! This is only the piece of hope for the deep-illed global financial system. Althought, some news indicates that not everyone of House of Representative are happy with the revised plan.(some traditional tracking record may even signal rejection vote) Nevertheless, there are too much in the stake this time.

My prediction is that they will pass it! and i am very confident with this prediction. I believe this plan will "heal" a lot of short term pain in current situation(e.g. it will help corporate financing, at least some commercial paper sale; banks will also recover a lot of confidence later on, so will the consumers). However the long term effect remain too be seen. I guess we will see FED cutting rate to help fiscal debt later on(rather than some suggestded raise). So it would hurt dollar bulls a little,not a lot(this time because reccession and banking problem shift to Europe：it is said that more than half of problemed secondary mortgage collteral are held in european banks!!!). Commodity price will pick some, mainly the gold, Crude will be start to pick in late of 2009 (at that time economic activities would have covered some, inflation will then again start become some long term problem for us.

what a great deal! History is keeping repeating itself in similar term, isnt it? 30 years ago, When US economic came across some difficulty, japanese paid for American. This time is similar, but isn't everyone paying for the US housing bubble? Somehow, European may have to pay more.

LetS Switch to the political contest: Will Barack Obama be next U.S president? Yeah, pretty much a sure thing now. So let's bet 20 bulks on it, because in current eco evironment any chance for extra cash are irresistable..........

03/oct/08