P 310715Z JUL 09
FM AMCONSUL HONG KONG
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AMEMBASSY BEIJING 
AMCONSUL SHANGHAI
AMCONSUL GUANGZHOU 
AIT TAIPEI 0369
CDR USPACOM HONOLULU HI

UNCLAS HONG KONG 001408 
 
 
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TAGS: OPRC KMDR KPAO
SUBJECT: MEDIA REACTION: U.S. ECONOMY 
 
TOPIC: U.S. economy 
 
HEADLINES AND EXCERPTS: 
 
"Stock market relies on money, not on what Obama says" 
 
The independent Chinese-language Hong Kong Economic Times commented 
in an editorial (7/31):  "President Obama said yesterday morning 
that the U.S. may be seeing the beginning of the end of the 
recession.  Obama's remarks are more political behavior than 
economic judgment.  They will help to stabilize public confidence. 
Nevertheless, even if the recession has come to an end, the economy 
may still linger at the bottom for a long time.  As for the stock 
market, big fluctuations will continue due to the influx of 
money....  Obama, of course, has his political considerations.  But 
all sectors hope that his remark will come true and that the U.S. 
recession will be over soon.  The whole world will then recover. 
However. . .the U.S. unemployment rate will continue to rise for a 
few months, even after the recession.  Americans need to reduce 
consumption and increase savings in order to cut their debts and 
rebuild healthy finances.  Thus the U.S. economy will lack strong 
consumption momentum.  Even if the recession ends, the U.S. economy 
will still linger at the bottom for half a year, or even longer." 
 
DONOVAN