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The quarterly unemployment rate of Greece came down to 7.1% in the second quarter of the year and the most striking part is that it is their ten year low. According to the data available from National Statistics Service on Thursday, it came down from 8.2% rate in the first quarter. According to the available data there was an ongoing job increase in just about all the industries and areas and brought continual unemployment rate in order with the Euro-zone averages in Greece.

According to a statement by Manolis Kontopyrakis who is the chief of the statistics services, with this data we are very pleased that we are experiencing a downfall in unemployment in all areas and sectors of the country. He also added that we have sufficient facts and figures to make a prediction that in the coming two quarters the ratio of unemployment will fall down more. This is for the first time that the yearly rate of unemployment for the current year will be below eight percent since the analysis got began in the year 1998.

Especially for the current year Mr. Manolis made a prediction that the standard rate of unemployment would be 7.7%. According to the new received data as compared to first quarter’s 4.50 million, the number of employed went up to 4.56 million in the second quarter. In the second quarter the unemployment rate for male was 4.6% which also witnessed a downfall from a 5.4%. As for the females the unemployment came down to 10.8% which was earlier 12.2%

Going according to the age group, the unemployment rate mainly comprised of the young population, here also the unemployment for the age group between 15-24 age groups came down to 15.4% in the second quarter which was 17.3% in the first quarter. Going according to the region in the year’s first three months main unemployment rate was in the industrial region of Western Macedonia where the unemployment was 12.3% which came down a little from 12.5%.

The islands of northern Aegean having the lowest unemployment rate, here also the unemployment fell to 4.1% in the second quarter earlier which was 5.3%. Attica where half of the Greek population lives, unemployment rate came down to 6.0% in the second quarter from 6.5% in the first.

Greece is happy with a healthy economic growth i.e. of 3.4% in the second quarter so far which is not influenced by any financial problems. But the employment opportunities stayed poor and were quite behind the average mark.

According to Mr. Ulrich Wilhelm who is a government spokesperson, the government of Germany felt no need for establishing a rescue package just like America did in order to face the crisis of financial market. He also added that for them there are dissimilarities concerning the liabilities and results, thus according to the government point of view there is no need for such actions.

At the government’s press meeting Mr. Ulrich justified the way American government acted. American government’s point of view agrees with the federal government on the measures taken that will eventually assist in easing up the financial market pressure. The American financial market makes a little impact on the financial market of Germany but at the same time the steadiness of the American financial market is also very important for them.

Mr. Ulrich also added that the both the government and central banks of seven of the foremost industrial countries are in touch about the issue. On the other hand German Finance Ministry spokesperson Mr. Torsten Albig was of the view that America’s official request is still pending. Mr. Henry Paulson who is the Treasury Secretary, has suggested a $700 billion plan to make the country’s poor financial sector steady and also suggested that other countries should follow Washington supposed banks’ bad mortgage debit.

There are probabilities that G7 finance ministers might organize a conference. Mr. Ulrich felt that there should be some global guidelines as only one country’s national guidelines are just not sufficient to deal with such issues. Mr. Torsten repeated that Germany is right on his part asking about the financial markets transparency. When in the previous year the presidency of Group of Eight foremost countries took place this issue was given the topmost priority.

On this same press meeting, Mr. Torsten said that in the beginning Anglo-American partners were opposing this. They maintained a distance in the year 2007 and at the time of the financial problem they again left us and now they are again making a comeback. Mr. Torsten also added that the planning that also includes Financial Stability Forum are some resolutions in order to prevent the future issues like this. Since the early year of 2007 the discussions have concentrated on preventing future unknown issues like- capital conditions, better hedge fund transparency, and ratings agency actions.

Mr. Torsten said that we have to put trust in that this will be the last financial problem. Germany, in the previous year during their G8 presidency organized a code of conduct for instantly increasing hedge fund industry but was unsuccessful to gather support from members of G8- Japan, Britain, and America.

On Thursday, Federal Reserve jumped into action to loosen down the hold of weakening credit crisis, by tossing in billions of cash in the US financial market and abroad.

With an objective of easing down the financial system from hardening up, Federal Reserve Bank of New York brought $55 billion in the momentary reserves of United States. The step comes when Ben Bernanke, Fed Chairman, struggles with a financial crisis ever since the Great depression. Financial system of America has been shaken up terribly.

President Bush in his statement said that he has been closely huddled with Henry Paulson, Treasury Secretary. Trying to reassure the nervousness spread in the country, he said that financial markets are dealing with huge severe challenges. President Bush also said that in order to ease down the crisis government is taking every possible measure.

An increase in borrowing costs turns banks unenthusiastic towards lending, which deteriorates the existing tensed credit situations. The release of cash in the market was aimed at calming down the sudden rush in the lending rate among banks. At early morning hours, Federal Reserves swung in action to calm down the growing crisis. Fed in coordination with other banks flooded markets with a huge amount of dollars, also it increased the flow of cash $180 billion to $247 billion to the central banks.

In a statement issued, Federal Reserve said that the steps taken are to improve the crisis in financial markets across the globe. Fed also explained that central banks have been working closely to take the right measures for handling the existing stress in the market. Major Banks that are working in coordination with the Federal Reserve are Swiss National Bank, Bank of England, Bank of Japan, Bank of Canada and European Central Bank.

Stirred white house, spurred up presidential candidates and shocked America is the outcome of the crisis in global financial market.

President Bush called the Fed’s bonding with other central banks of throwing cash in the frozen market ‘a significant move’, on the other hand Democratic presidential contender Sen. Barack Obama also called Fed action a right step for managing operation of financial system as well as for maintaining liquidity of credit to households and businesses of America.

The step taken by Federal Reserve came during a chaotic week when the stock market fell and investors took a shelter at safer options like gold and Treasury securities. On Wednesday, for a brief moment investors were found ready to overpay for certain Treasury securities.

The week started with filing for bankruptcy by a major investment bank Lehman Brothers and commenced with purchase of Merrill Lynch by Bank of America. In order to allow the government to take charge of the firm, Fed gave an $85 billion of loan to leading insurance company American International Group. The year has witnessed failure of 11 federally insured banks and economies and the biggest economy Washington Mutual Inc., is on the edge.

On Tuesday, Fed refused to low down the borrowing costs and to undo its course in the middle of weakening financial situations, thus it left the key interest rate untouched at 2 percent.

According to Federal Reserve’s officials the freezing credit condition and financial problems have flattened the rising impact of reductions by central bank on the businesses and consumers.

Economy is losing its grip and rate of unemployment is at its five-year high, with 6.1 percent.

While some believe that a rate cut at this time would not change the situation as well as neither help the anxious consumers nor will it strengthening the economy, on the other hand those not in favor says that a rate cut would send wrong and negative signs to companies with bad bets.

Euro went up against greenback. The session high rise of euro came after pushing investors in buying of the currency for averting additional losses, by infringing of major technical level. Investors were forced to buy the euro in spite of betting against the currency.

After touching a high of 1.4301, euro went 1.2 percent up against the US currency at $1.4298 .

Chief currency strategist at Forex.com in Bedminster New Jersey, Brian Dolan, said that the breaking of few technical levels over $1.4250 caused a short grip. He also added that there isn’t any clear blueprint or pattern.

On Friday the Dollar witnessed a jump against both Yen and Euro, boost up by the news that American government is working on a plan to deal with the bank assets those are main source behind the credit problem. Mr. Henry Paulson who is American Treasury Secretary and Mr. Ben Bernake who is the Federal Reserve Chairman will be planning to work on a plan throughout the weekend that will be mainly focused on the how to deal with the liquid assets.

These assets are the main reason behind the breaking of the balance sheets of the banks and this week pushed Lehman Brothers to file for the bankruptcy protection and it also encouraged the bailout of American International Group. According to this plan there will be a setting up a fund for purchasing troubled bank assets like RTC (Resolutions Trust Corporation) that can be put into use to clean up bad debts from the savings and loan crisis that took place during 1980s.

According to Mr. Masafumi Yamamoto who is the chief of foreign exchange strategy of Japan at Royal Bank of Scotland, the investors made the purchase of the dollar trusting that the new systems will prove beneficial in solving problems in the financial structure rather than managing with the issues at personal financial firms. Mr. Masafumi also added that this news will ease out the investor’s problems over risk assets along with the purchase of the dollar.

The dollar index which keeps a record for the performance of American currency against six of the main currencies was up by 1.2 percent and was at 79.048. The Euro fell down 1.3 percent from late American trade at $1.4159 extending its drop by Thursday’s two week high of $1.4542. The Dollar increased 1.6 percent to 107.10 which showed an increase of one yen from the day’s low of approximately 105.40 yen.

But the fact remains unchanged that the financial market was wobbly even after the Federal Reserve and main central banks tried their best to push billions of dollars in the international market to normalize funding problem. This week following the falling down of Lehman Brothers and bailout of anxious insurer AIG worsened the whole situation in the financial market as the banks refused to lend amongst each other.

With Federal Reserve leaving interest rates fixed at 2 percent, dollar experienced a growth on Tuesday. Fed has held the key rates for time being in order to calm down the troubled economical markets, as instead of rate cutes central banks offers conveniences.

With apprehensions caused by insurer American International Group, dollar went into volatile state and made many investors sense possible rate cut. The whole state was followed by a stock market suffering a major decline, biggest one since 9/11. In spite of debates rising up regarding Fed announcement, investors were optimistic. With Bloomberg’s reporting about consideration of loaning to AIG, dollar got that extra push up against yen.

Vice president of trading at Tempus Consulting in Washington, Greg Salvaggio, said that the decision of Federal Reserve for steadying the interest rates will prove as a confident factor for market and bring out the positive vibe about things not being as bad as considered.

On Tuesday, the late New York trading saw euro falling to $1.4153 , with a 0.8 percent of slip. The currency had a well-off session on Monday as it touched $1.4479. While the ICE Futures Exchange’s dollar index moved up to 79.109 DXY with a 0.8 percent high. Dollar experienced a recovery as it rose to 1.6 percent with 106.24 , the revival from a four month low brought its finest moment ever since 1st April.

On Monday, yen faced a major gain against the greenback. Even euro had its time, as it moved on to a 150.40 yen with 0.7 percent of high.

In the midst of concerns regarding global credit crisis, many worried investors turned towards the refuge of the dollar, which acted as a safer zone on Tuesday. Factors that added to the concern regarding economical system of United States included crumpling of Lehman Brothers and the fall in earnings of Goldman Sachs.

Dollar demand also increased with statements from Goldman Sachs. Amid the disturbances caused by financial problems at American International Group and fall of Lehman, panicky investors moved to the safer options and opted for U.S. government bonds discarding the stocks. To conquer the credit concerns, money markets were swamped with cash by central banks. The decision was also aimed at helping the lending.

Market analysts believe that dollar received an edge of benefit from the financial turbulence and jitters arising in United States, as it prompted investors to send money home.

Senior currency strategist CIBC World Markets in New York, Adam Fazio, considered the huge anticipation for foreign-based U.S. investments as well as foreign funds a reason behind the upswing of dollar. He also anticipates a continuation in the trend. Adam added that any such big trend is bound to continue and this dollar upswing will help dollar longs.

On Monday, dollar moved down in the Asian trade with the rising concern over outcome of rescue plan proposed by the government of United States. Many fear that the idea of takeover o bad debt of Wall Street could further weigh down the finances of United States.

Dollar was found easing in morning Tokyo trade with 106.81 yen from its late New York trade of 107.38. While euro rose against dollars from initial 1.4476 to 1.4493 dollars, it slipped down against yen as it fell from previous 155.49 to 1.4476.

The anxiety surrounding dollar increased with investors calculating and weighing the repercussions of the biggest rescue plan ever. Investors are busy thinking about the outcome of the 700-billion-dollar scheme to takeover mortgage-related assets or bad debts of financial bodies.

Saburo Matsumoto, chief Forex strategist at Sumitomo Trust Bank, said that market is uncertain of the outcome and is not sure how to take the plan due to the fog surrounding it. He also said the market will take its own time to perceive the plan and its effects.

With hope of the plan getting passed by the end of the week, US Treasury Secretary Henry Paulson and President Bush are urging the US congress for its approval. Henry Paulson and President Bush unveiled the rescue idea during the weekend. John Kyriakopoulos, NAB Capital strategist, said that while the rescue plan of the government will benefit economical markets, taxpayers in US will argue over the scheme.

Possibilities are that in terms of cost factor the rescue scheme of US government could compete with Iraq war, as Republican Senator Richard Shelby guesstimates the whole planning package to touch the amount of one trillion dollars, at the least.

Being the utmost amount of money that can be borrowed by government with no requirement of any permission from congress, Public debt limit would now move from 10.6 trillion to 11.3 trillion dollars as per the plan sketched by white house. According to political analysts, the national debt might move up from 67 percent of GDP (gross domestic product) of US to 72 percent of GDP.

John Kyriakopoulos also said that jump of five percent in the gross domestic product in federal debt could persuade running of higher inflation by the government for soothing down burden of national debt by the US officials. John added that this could be off-putting for the US currency.

Saburo Matsumoto said that markets thinks that US officials clearly needs a scheme for giving a support to declining housing-related assets and housing values, as it all could turn into toxic debt.

Monday witnessed a fall in US currency in Asian trade bazaar, as Lehman Brothers statement raised concerns regarding stability of financial system of United States. The Brothers sparked possibility of rate cut by Federal Reserve, by confirming about their plans for filing for bankruptcy.

From Friday’s closing point of 107.86, US dollar fell 2.3 percent down at 105.45 yen . Whereas the euro stumbled from 153.43 to 152.26 yen. With trade being thin during holiday in Japan, yen gained heavy with investors hanging on to it. Yen hasn’t gained this big since 2002.

On Sunday, chain of urgent and emergency actions was taken by Federal Reserve. The measures were aimed at controlling economical markets as well as to calm down commotion or disturbance following the end of Lehman. Out of the steps measures, one major step was to take equities the same as collateral. According to this change, equities will taken as collateral in support of cash at special credit facility. Fed has taken such step first time in its history so far.

Head of investment research at Bank Julius Baer, V. Anantha Nageswaran, called Federal Reserve’s such ability as a negative point for the United States currency. On Monday, Treasuries scaled on to the concern regarding Lehman, as the measures for rescuing Wall Street investment bank weakened along with the talks that insurer AIG was in quest for urgent funding. According to the statement made by Lehman Brothers, the firm would file for economic failure. Lehman also added that the filing would not include any of its broker-dealer subsidiaries.

In the meantime, reports came regarding acquirement of Merrill Lynch & Co Inc by Bank of America Corp for an amount of $44 billion.

Head of bond fund Pimco, bill gross, said that the decision of filing for bankruptcy could lead to turbulence in the market.

Japan’s major companies are still pessimistic about the business conditions with the prices of oil eased up, but they probably will remain on the edge in the wake of the latest shakeup in the banking industry of America. According to a Ministry of Finance review on corporate, highlighted the view that Bank of Japan will keep rate of interest on hold for the expected future. The Bank of Japan closely observed tankan corporate review which is due in the next week. Probably they will project an unwelcoming picture of the mood at Japanese companies.

According to Mr. Junko Nishioka who is an economist at RBS Securities, on the whole the economic reaction will stay fragile. But still with the downfall in the pricing of the oil might assist in relieving the pessimism that is present amongst the companies. It is evident that as of August 25th the review of Ministry of Finance was based on the trading circumstances, the economists are of the view that the emotions might have deteriorated in the wake of the financial issue that took place last week in America.

According to Takeshi Minami who is the chief economist at Norinchukin Research Institute, the companies are not worried about the latest financial market chaos as the review was done in the month of August. BSI (Business Survey Index) of sentiment at large producers rise up to minus 10.0 from July-September ranging from 15.0 in the earlier quarter, but continuing to stay in the negative area for third straight quarter.

Big service sector companies’ index rose to minus 10.1 from 15.2. The poll followed a Reuters Tankan survey in the last week that demonstrated sentiment amongst the producers of Japan stayed a five year low while in the month of September the non-producers hit a five year low. According to a separate Reuters review, the economists Bank of Japan tankan’s sentiment index for major producers becoming negative first time after the gap of five years, also had to face financial sector problem and economy of Japan going towards recession.

The quarterly review of the central bank is to be conducted on 1st of October. The newest government survey showed that the firms are anticipating that their trade will eventually improve in the upcoming quarters. The index of the major producers was witnessed at minus 4.2 in the month of October-December and plus 0.7 in the month of January-March.