The House had voted but this time the Senates may gather in order to prevent this huge manipulation of the bailout money injected in order to prevent failure in this company.

Markets were shocked when they saw how much the American International Group decided to pay for bonuses, it is shameful what did they do in order to take all this money at a time the economy is struggling with the worst recession since the Great Depression and people are losing their homes.

More restrictions are being approved on the bailed out companies after they proved to the world the level of misuse taking place, greed is taking place in markets and seriously in those situations the government must be more vigilant on how those companies are spending the tax payers money.

Due to the continuous gloomy data from the world’s leading economy along with the unexpected decision to start purchasing treasuries came to weaken US indices shaking off all the gain seen earlier this week, besides the US dollar that continued weakening against majors, reaching to 1.3666 against the Euro and to 94.66 against the Japanese Yen.

This week will be sealed with pessimism, the United States lacks any fundamentals for today, content with the data released earlier. Jobless rates continue to soften as sectors resume their job termination especially that demand and profits continue to ripple their earnings.

Okay, we know that with this attempt growth might pick up again but the resumed concerns clarify that markets are expecting the worse and transformations are taking place where their contagion had augmented reaching to Deflation!

The United States would be facing their first deflation ever if consumer prices plunge below zero barrier, we are almost sealing the first quarter and prices are still holding in critical stages but I believe if crude prices resume some momentum to incline back this would bolster prices in the world postponing any threats of deflation.

From the Zone, we’ve seen earlier today the German Producer Prices falling 0.5% in February from the previous -1.2% and the yearly prices eased down to 0.9% from the previous 2.0%. The falling producer prices will increase pressures on consumer prices to the downside where recently we all saw prices head from the extreme high levels seen in the prior year to those low levels.

Moreover, we’ve got the EZ Industrial Production where according to market projections the level of production had fallen in January 4.0% from the previous -2.6% in addition to the yearly production falling 15.5% from the previous -12.0%. The narrowed levels of demand from the world’s economies on the European goods had stalled production, as companies no longer see their previous earnings.

The end will be with the Canadian Retail sales, where we might see some improvement in the January sales, according to projections sales rose 1.0% from the previous fall of 5.4% with the sales less autos adding 0.5% from the previous 3.2%.