That is a dangerous dynamic we need to change. While the market has not received from the best way to this news, the question to answer is what implications may have these two ads for the U.S. economy in particular and for the global economy in general. After multiple previous ads that included multimillion dollar packages of economic stimulus and bailout of the financial system, should recognize that there is a certain level of mistrust about the effectiveness of these measures to lift the American economy recessive situation in which it is located. Still will have to wait a little longer for more details on these measures and with what timing them will be implemented.
These issues are not less in terms of their effectiveness. The rescue plan for the financial system is of great importance to achieve that it begins to generate the necessary financing for families and businesses. In this sense it may be necessary to achieve an explicit commitment by the financial entities support the American economy generating credit recovery of the economy. After all, they are the same great responsibility for this crisis and its bailout occurs with money from American taxpayers. By its magnitude, the economic stimulus plan can achieve a sensitive impact on the US economy giving the necessary impetus so that it begins to recover, although this would occur at a slow pace. The recovery of the US economy would change the Outlook for the rest of the developed economies since the reversal in the dynamics of the American demand for foreign products will produce a stimulus (though probably weak), the rest of the economies.
But most importantly that the beginning of the recovery of the US economy and its positive influence on the rest of the economies takes place relates to how will evolve the expectations both families and businesses since it will affect the dynamics of domestic demand. If families and companies do not trust the effect positive both plans on the economy, they will not consume or invest by what will not reactivate the virtuous circle that leads to growth. Both the economic stimulus program and the financial stability Plan are useful depending on the US economic recovery, but they cannot be one sufficient condition to ensure the same because the fears that may remain in the markets can play against them. Once both economic stimulus and bailout plan are clearly defined in its implementation methodology and the scope thereof, will be a time of hopes that the market will be taken to assess the usefulness of them. This time will be key to discern if it begins the upward cycle in the American and world economy or if we will have to continue browsing in the tempestuous seas of the crisis with the threat that the situation can be even worse. Original author and source of the article.