On Friday, in the FOREX market, the EURO/US dollar opened at price floating around 1.4110 , and was on rising trends with early EURO market supports . However, after the noon break,  European Stock market starts to slide, resulting in market suppress on the exchange rate to fall to the opening price level nearby.

Across the globe, market analysts believe that second quarter’s GDP report throws some light on indicating that US current economic recession is seems to be approaching bottom, with US Government economic stimulus plan’s to start showing positive effects in the second quarter. Most economist are foreseeing more concrete effects in 2nd quarter of this year, to next year, from the economy stimulus plan rolled out by US President’s administration.

Also on earlier, USA House of Representatives votes and approved the urgent move to shift more funds in economic stimulus plan to the “Car Allowance Rebate System” ( which informally called “Cash for Clunkers” ).  With this move, additional of $2 billion will be available to sustain the bill which was signed into law by US President Obama , creating the NHTSA Car Allowance Rebate System (CARS), in effort to help turning the economy around.

So far, there has been mixing reactions to this bill and on the additional funding made. One thing to note is, the public need to be clear on the fact that it was unrealistic those on top level to review a bill , and then to  come up with comprehensive set of rules and guidelines in such a short time span.

Nevertheless, on the ground, the responses appears to be pretty encouraging, with motor vehicles dealers reporting much positive result and more sales. On the surface, it help on consumer spending, and instill confident in the market to keep people spending and move the cash around. On the other hand, with more vehicles pushed out, factory could then be able to kick off with more production, and also purchasing more part along the way.

In such, if we look at it that way, the bill is indeed a good move by the Administration. But the question remain too – Could it sustain ? By continuing putting more money in consumer pocket at this moment, how would it means for our next generation ? Bigger debt than ever ?