Currently many governments have pumped in money into their economy. The basic strategy appears to be to pop up asset prices while hoping for economic recovery. It might be better if the governments let the markets move unimpeded..might be painful but at least a clear path for sustainable recovery is initiated. Recent market gains appear to give a picture of recovery. It should be noted that while gains are possible, it pays to be cautious. US banks remain undercapitalised even after raising US$75 billion of equity following the so-called stress test.
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