Wednesday, February 17, 2010

Economy and Political Gridlock

Stock markets in Europe and Asia were higher yesterday, building on Tuesday’s manufacturing data and receding anxiety over Greece’s debt problems.

While Wall Street showed signs of life i.e. it opened higher on Wednesday after reports showed that home construction rose more than expected in January and industrial production increased last month, politics in the US is spoiling the momentum build up.

Politics maybe killing whatever form of recovery or momentum is developing. Senator Evan Bayh’s comments about a dysfunctional Congress and the unwillingness of the two parties to compromise to control a national debt that is rising to dangerous heights is dampening whatever good news we got at hand. But let us set aside this worries for now. They are adults, and let us hope they know best what is good for the US of A.


Meanwhile rivalries between China and India is heating up whit India worrying about China's various projects in South Asia. For more about this, here the link to that article.