Economic Hassles Due To CIT’s (CIT) Announcement

The aftermath of the CIT (NYSE: CIT) bankruptcy news is creeping up on other currencies too. The yen rose in value to a three-week high and bought at 90.09 per US dollar, while the Australian Dollar earned 89.97 US cents as on October 30th. The US financial system also seems to be suffering from the CIT bankruptcy status with the taxpayers not being able to recoup much of the $2.3 billion funded to CIT by the State. Unemployment rate in the US rose to 9.9 percent in September and the recession does not seem to be ending soon.

China posted some fast gains in its manufacturing sector and so did Australia’s housing sector, suggesting global economic recovery. The Chinese Purchasing Manager’s Index leveled at 55.2 in October, from a 54.3 in September, according to the Federation of Logistics and Purchasing, Beijing. The Australian Bureau of Statistics reported a 4.2 percent increase in weighted average prices of established houses. The Australian economy says that the country’s economy will grow faster and the budget deficit will be as predicted.