THE AMERICAN INVESTMENT BANK Lehman Brothers applied for bankruptcy protection. The Russian stock market was closed when the dollar based RTS index dropped by more than 20 percent since the beginning of the week. Bank of America bought Merrill Lynch and rumours are that the investment bank Morgan Stanley will be purchased.

– The financial markets are incredibly turbulent and we have not seen the end. Many financial institutions have substantial problems and the American housing market looks very gloomy, says Christian Dahlberg, Manager at SEB, New York.

"Many American has to leave their house now when they can't afford it any moore", says Christian Dahlberg.

The major problem regions right now in the US housing crisis are Florida, Phoenix and California where a lot of people live above their means. But the crisis is not as bad in other parts of the country.

– In the past, prices have dropped by 15-20 percent and will most likely drop as much before the crisis is over, says Christian Dahlberg.

TO PROTECT AND SUPPORT the financial system and the local economy, enormous rescue actions have been carried out by the US

Department of Treasury and the Federal Reserve. Christian Dahlberg believes that there will be more rescue attempts in the near future. A little less than two weeks ago, the US finance department took over the struggling home loan mortgage groups Fanny Mae and Freddie Mac for the incredible amount SEK 665 billion. This Tuesday, the latest rescue action was performed when the Federal Reserve granted a USD 85 billion loan to the insurance giant American International Group (AIG). At the same time, the government takes over 80 percent of the company.

IN SPITE OF GREAT uncertainty in the US finance market right now, Christian Dahlberg doesn’t believe we should disregard the US as a lucrative market.

– It depends on what type of business you’re in, its market size and whether you are already in the US market. Major Swedish corporations already established and with their main market in the US, can still benefit from a relatively low dollar. However, companies interested in expanding in the US market should make a qualitative market analysis of their business segment to examine the current situation.

The financial industry is currently in a serious dip, but the oil and energy sector has never been better.

HOWEVER, you need to be aware of tougher conditions in the US.

– Following the Enron scandal, it has become much more complicated with more restrictions surrounding listed companies. The CEO and the board have to sign all documents and take personal responsibility for operations.

With the current financial crisis, Christian Dahlberg believes that both Obama and McCain will debate whether the market needs tougher rules and regulations in the future.

      "If you do your homework properly you have great opportunities to  
       succeed in the USA", says Christian Dahlberg

AT THE SAME TIME, he stresses that we should remember that the US is an incredibly large and dynamic economy filled with opportunities.

– Never underestimate the American economy and the strong players willing to support it. The enormous rescue actions prove that.

 

Emelie Ring