US stock surges on Election Day

As US 2008 presidential candidate is on the brink, while on one side US voters putting their votes in the ballot boxes, on the other side, US investors came back to bourses, with US stocks surges by more than 300 point on the election day. The Energy and the banking shares were the front end shares in today's rally. The S&P 500 added app. 40 points and closes above 1000 points, while Dow Jones Industrial Index settled above 9600 points. Some Wall Street analysts also pointed out that the Armageddon of Crisis is over, with market may see some better days ahead. But from my opinion, the state of crisis is still not over, this may be short bull run in this highly volatile scenario, and with change of leadership in the US politics may helped bull to come out from the den, but still its a long way to go before market will be in a position to move on smoothly.

Thanks&Regards,
Mohit

Goldman Sachs and Morgan Stanley change their LOB.

It seems that US financial crisis is still not over, today two another biggest Investment banks, Goldmann Sachs and Morgan Stanley at Wall Street approach federal reserve to change their LOB from Investment banking to more regulated Commercial or retail banking.

Reason behind the decision :
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Recent fall of Merrill Lynch and Lehman Brothers really hit the backbone of the financial industry in US. Even these two Investment banks were also had the substantial exposure to subprime mortgage loans on their books, which resulted in heavy quarter looses. As in this difficult times its very difficult to get loans from the money market, so they decided to move to more safer and regulated commercial banking space.

Impact on this decision :
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These banking operation of these banks will be more regulated. They can approach Federal Reserve for the bailout loans without any hassle.

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Thanks&Regards,
Mohit Kumar

Another Black Monday At Wall Street

15.09.2008 can be marked as another black monday at Wall Street, with some of the major investment banks Lehman Brothers, Meryll Lynch and insurance companiy AIG declared their bankruptcy. Dow Jones plunge by more than 4.4% or 500 points today, its highest fall since 9/11 tragedy, even the Indian sensex did not remain untouch with the wall street disastor, in the early trading hours it loose more than 800 points. Even somebody on the Street is comparing this as worst day in the financial industry after Great Depression of 1929.

Besides, scene at the Lehman headquarters are really bad Feer of loosing their jobs, apprehension of their future work, was looming over the mind of every banker and employee working in these banking stalwarts. Subprime Crisis really hit the backbone of the US financial Industry and the overall world economy. But the question is whom to blame? Govt. Financial Institutions, Regulators, Speculators, Rating Agencies, or Investors. Every body played their role in bringing the world economy to stand still, and bringing another black day in US financial history.

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Thanks&Regards,
Mohit