No job, socialistic pills are working but, long way to go

Jobless claims are rising week after week, main street is still crumbling althow wall streat has shown the green shoots but economy wants a complete tree, the green shoots has short life in turmoil any small shock can erode their greenary.Finencials are still not out of wood thats why people graduating from the b school facing tuff to find the place in the industries

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Dose number one: Fed landed up to $85 billion to AIG, and the U.S. government will effectively get a 79.9% equity stake in the insurer in the form of warrants called equity participation notes.

Dose number two: Aggressive policy rate cut near to zero to .25 by American fed reserve.

Dose number three: Massive bailout package of more than 850billion$ was fabricated by hennery Paulson  previous treasury secretary and passed by the Capitol Hill in second attempt despite of people protest on main street .The taxpayer money were parked to toxic assets.

Dose Number Four: Tax incentive for the company and even the home buyers by the US government.

Dose number five: TARP plan of Timothy Gethner the new treasury secretary to help the banks followed by the tax breaks for the home buyers and industries from Obama administration.

Dose Number six: The new buzzword is PPP i.e. public private partnership a typical term close to socialistic world to save the collapsing system.

OUTCOMES:

The effects of the socialistic doses was quite helpful to arrested the fall .the first indicator came from the credit market LIBOR rate who went at record high has started coming down significantly this was the first indicator of thawing of credit system and at least some credit flows were started in the system earlier which was dried up . Dowjones is significantly rallied up to 8600 close to 200DMA.Finencial share performed well they rallied 200% to even more city was quoting .90$ is now more than3$more than 300% rise from low, almost similar move shown by the Bank of America,JP Morgan and other, the move of US equity markets are followed by the global market .After aggressive write-down of losses the balance sheet has shown some green shoots, but shoots are  not the solution we need a proper tree to bring the economy out of wood and it will take long time to convert into the tree.

Retail sail is not picking up so inventory is piled up in warehouse force the manufacturers to cut the production and so impact is visible on the economic data.

Initially it looks that recovery is there and  Capitalistic world escaped from demise and its credit should be given to the socialistic syrup but how long it will help the economy to recover and what happened when this oxygen will be removed only time will tell

Still the unemployment rate is getting higher and higher and analyst predict 10% rate of unemployment very soon, Stress test results suggest that 10 banks from the 19 whose stress test conducted needed more capital in spite of the previous support from the government. Many experts holding the opinion, that it is the short term solution of the long term problems if it won’t work then what next?

A sustainable recovery will occur only when the corporate system will be cleaned of losses and capitalism risks collapsing if this does not happen, Marc Faber, the author of "The Gloom, Boom & Doom Report.