Wall Street was rapidly heading towards further recovery early on Thursday morning as the market was nearing the 8,000 mark. It is another encouraging sign that the economic policies of the Obama White House are beginning to work. What is so encouraging about this economic rebound on Wall Street is the historic fact that unemployment figures tend to improve within six months of a Wall Street rally.
Critics of the presidents policies may continue their attacks and continue to argue in favor of the same old economic policies of George Bush. However, by the president's aggressive economic policies, in about 70 days in office, he has been able to show some early results of an economic revival.
The G20 summit is also a further attempt by the world community to revive the global economy as well. In China for example, 70,000 factories have closed and 20 million jobs lost as a result of this serious global economic crisis. And most other world states have also witnessed serious problems as well.
Update: Lee adds this...
"Everyone is in a buying mood," said Eric Ross, director of research at brokerage Canaccord Adams. "Everyone is feeling good. ... A lot of this is simply confidence."
Banking shares got a significant boost after a rulemaking body for the accounting industry relaxed financial reporting rules that force banks to value their assets at current market prices.
The change in "mark-to-market" accounting rules, which should help banks reduce losses, sends another lifeline to the troubled financial industry. Many investors believe financial stocks, which have largely carried the market's four-week rally, are a gauge of when the economy is turning.
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