Weekly Update For A Gloomy July
July 27, 2008
This week, as rain pours over Ontario, more wealth drains out of North America. The housing industry continues to drop, but it seems the rate is finally slowing down. Wachovia, SunTrust and three other banks reported a combined loss of over 11 billion, while their shares rose in value by about 11 billion. It seems, that expectations were so low, that the losses were better than what analysts saw coming. This, in turn, fueled the blind increases in their stock.
The only good news came out of tech stocks, as Apple, and Amazon posted amazing results. Speaking of Apple, there was some news regarding the health of Steve Jobs, but it seems that it has all cleared away. With oil finally falling, and a slight hint of consumer spending with box-office hits, the skies look good for next month. Oil has been hovering around $124 a barrel this week, about $20 lower than previous prices. A major contributor to this is due to the fact that global demand for oil has finally dried up. Another concern is the amount of regulation in the field of derivatives. Tougher regulations in options and futures trading could prevent or lessen future economic blow-ups like these, especially with something so fragile as oil and energy. None-the-less, the month of August has lots of sunshine on the forecast, and global expectations are high. I can’t wait to see what August brings.
Signing out,
ZEZ
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