Hi everyone!
US lawmakers have asked the Treasury to insist on requiring banking institutions sharing in the $700 billion bailout to comply with limits Congress imposed on executive salaries, and use the bailout money for its intended purposes.
In the first detailed review of the rescue package, the Government Accountability Office said on Tuesday that the Treasury has no mechanisms in place at present to ensure that banking institutions limit their top executives’ pay and comply with other restrictions. But auditors recommended that Treasury cooperate with government banking regulators to determine whether the activities of financial institutions that receive the money are meeting their intended aims and is not a waste of taxpayers’ money.
“The GAO’s discouraging report makes clear that the Treasury Department’s implementation of the (rescue plan) is insufficiently transparent and is not accountable to American taxpayers,” said House Speaker Nancy Pelosi, D-Calif. Pelosi pointed out that the lack of accountability of financial institutions were in stark contrast to the Congress requiring detailed plans of US automakers to show that any bailout money given to automakers would ensure long term viability of these companies.
Now to the overall market, the recent rally may now turn the other way and head downwards as shown by the 3 month VantagePoint chart below:
The Predicted Neural Index (the green line) is at 0 (bearish signal) and with the Predicted Stochastic at 68.07 which is closer to its high threshold of 80, it is indicating that the Dow Jones Index may have reached a temporary peak and is time for a change in trend downwards.
With the Predicted MACD at -166 which is below its threshold of 0 and with the Predicted RSI at 39.42 which is closer to its low threshold of 30, this may indicate that the recent rally had not been as dynamic as one might have hoped for and would not be sustainable.So it looks like the Index and the overall stockmarket may have reached its peak for now and is due for a change in trend downwards.
Til next time, Adieu
