Tighter Grip on Wall Street by Obama

In Washington, it was reported that the government of the United States of America plans to come up with tougher financial rules this Thursday. Such an announcement is part of their plan to further their efforts in stabilizing their economy as well as curbing the risk-taking behavior which ended up totaling a majority of their banks and starting the world recession. United States President Barack H. Obama as well as the United Kingdom Prime Minister Gordon Brown is both making preparations for the groundwork of an upcoming summit for the major powers of the world. Such a summit will be held in London the following week and is billed as the watershed when it comes to making efforts to save the world from plunging deeper into the worst economic crisis to hit the globe since the 1930s.

Possible Signs of Pauses

The proposals prepared by Obama might very well follow several signs that the biggest economy in the world is on the verge of pausing the shrinkage and is now geared towards making positive reactions from many financial markets. This also coincides with the plan of Washington to purge out their banks of more than one trillion dollars worth of toxic assets coming from the root cause of this crisis. However, important data shown regarding the economies of Europe last Thursday indicates that the atmosphere is less than encouraging. This is also prompted with the retail sales of the United Kingdom slowing down to around five times bigger than the initial forecast. A lot of surveys also show that the confidence of consumers might very well worsen the touch that is expected in Germany sometime in April. Meanwhile, the French morale is still pretty much in the gloomier states.

Few Signs Seen of Recovery for US Economy

The United States Federal Reserve’s official by the name of Dennis Lockhart had also mentioned to many reporters last time in Paris that he had not seen a lot of signs that indicate recovery of the United States. A lot of the data which they had followed shows that there is continuation to the recession by at least a couple of months still. Meanwhile, the shares of Europe as well as the United Kingdom is inching a lot lower. The retail sales of the United Kingdom are also down, thus driving the sterling downward compared to the dollars. However, the Asian stocks are also rising higher in around three whole months. This had extended the rally of the global stocks right after the strong United States housing as well as durable goods data. Such a rally was also seen as nervous and jittery, according to David Buik who a senior partner is working at BGC Capital Partners in the London area.