Employment Poison + litigation storm Wall Street again under pressure

Source: Internet
Author: User
Keywords Wall Street Poison.
Li Guanyun is a bad job data! September 2 U.S. stock market before the opening, August employment data released.  The unemployment rate in August remained high at 9.1%, and the ranks of the unemployed were still as high as 14 million, while average hourly wages fell by 3 cents per hour, or 0.1% per cent in weekly employment.  Goldman Sachs previously reduced the August non-farm employment growth forecast from 50,000 to 25,000, in fact, the United States in August the new non-farm employment of zero, this phenomenon is the first time since 1945 in the United States. The data was released 8:30 A.M. local time September 2, the U.S. three major stock index futures fell rapidly, within 30 minutes, S & P index futures fell 1.47%, Nasdaq fell 1.44%, Dow Jones fell 1.35%.  This shows that the day the stock market fell momentum obvious. Bad job numbers are making markets more panicky as the US economy falls into recession again, calling for the Fed to launch QE3. U.S. GDP growth of only 0.7% in the first half of the year was the lowest since the end of the recession in 2009, and the White House predicts a 1.7% GDP growth this year, which clearly does not create enough job opportunities,  So the Obama administration September 1 predicts the U.S. unemployment rate will remain at a 9% high in 2012. When the job data came out, a lawsuit storm that claimed as much as $ billions of trillion began to cloud more than 10 top banks on Wall Street.  According to the New York Times, the Federal Housing Finance Authority is about to prosecute prominent banks such as Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank, accusing them of making a false claim on the quality of their mortgage-backed bonds and selling at a time when the housing bubble hit a peak, costing Fannie and Freddie $ more than 30 billion.  The Federal Housing Finance Authority will launch its first prosecution on September 2.  The bad news has led to a sharp fall in bank shares September 1, US bank shares fell 3.18%, Goldman Sachs fell 3.49%, JPMorgan Chase fell 3.35%,ubs 2.37%, and Citigroup fell 3.38%. Bank of America has fallen even as high as 8.5% per cent in the Tokyo stock market.  The Wall Street Journal says the Fed has asked BofA to explain what measures the bank will take if things get worse.  With bank shares plunging, September 1, the three major U.S. indexes fell by more than 1%, according to Bloomberg data, when the global stock market shrank 166 billion U.S. dollars, August global stock market already has 4 trillion market value evaporation. In July this year, UBS has been sued in a similar amount, with a claim of $900 million. AIG sued BofA for the same reason in August, claiming 10 billion dollars. The Attorney-General of 50 U.S. states is also trying to make the case for Bank of America, JPMorgan Chase and Citigroup to pay at least 20 billion dollars to help those who have been repossessed by banks in the housing bubble. Share to:
Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.