StockTradingEmulator: WeekComment Sep.14-20, 2008

This week (Sep.14-20, 2008) witnessed the unprecedented fincial crisis of USA in history. It was sloved temporarily by the US government's step-in with huge bailout. Folloing the review of the events occured in this week, our comment and the prediction of future influence brought by the bailout.

Market	Events	Market Response	Comment
	Shortly after midnight, Lehman Brothers Holdings filed for Chapter 11 bankruptcy protection. Minutes later, Merrill Lynch, desperate to avoid Lehman's fate, confirmed that it would sell to Bank of America for about $44-billion in stock, or roughly half what the firm was worth in early 2007[1] By midday, investors felt the sense of dread based on the refusal of government to the dying AIG which need 80 Billions impossibly privided by private banks nightfall on Monday.[1] Tuesday CNBC reported that the government rescued the insurer with Mr. Paulson's $85-billion solution, which gives the U.S. government control of the company.[1] Friday,Though Mr. Paulson's Thursday night briefing was vague on details, the direction was clear: Somehow, the U.S. government will take hundreds of billions of dollars of illiquid loans off the books of the nation's banks and put them on the backs of the taxpayer. A temporary ban on short selling financial stocks imposed by the Securities and Exchange Commission helped investors – or hurt, if you were a short seller on banks like Eric Sprott, who attributed much of the stock market's sudden rise to that regulatory move.1]	The index ups and downs with the news, and close with little higher than last week's closing price. Monday it slumped from 1251 on last Friday (Sep-12,2008)and down to closing 1156(lowest 1134)on Wednesday, and pumped to 1261 on Friday.	In the long term , the financial Tsunami will shock the economy. The huge bailout will increase the inflation rate and unemployment rate because the money supply increment and reduction of demand for product which is over increased before because of the over credit busted now. However, the economic data in the future 1 year will not be affected significantly because any policy will take more than one year to be effect. So the events will influence the ceiling of 2009-2010 stock cycle but not that of 2008-2009 cycle. In the short-run, the lowest index 1156 confirmed the prediction the buttom of 2008-2009 cycle at balanceRate 10% - 1158. So the ceiling of 2008-2009 cycle will be no more than 1338.(see S&P500 Index prediction). Because this event is the one of the worst bad events for the market in the world, so we can reason that manipulators are making use of it to create the buttom of 2008-2009 cycle. we can say from now on , the crocodile begins to eat fish . The alarming signal that manipulator realize its profit is 1311