Wall Street remained tense as fears of global recessions are on the loom.  Even Fed policymakers are saying the economy appears to be in a recession. Investors examined data and looked for clues on economy as Dow Jones was down 380 at one point, rose more than 400 points in the final hour of trading.

Even with government intervention to calm market down it is unclear what Bush administration will do next. Report on earnings showed negative signs and this season many customers most likely would stick to their budget or don't spend money at all. This leaves retailers in red mark for upcoming season.

Investors don't know yet how economic turmoil will turn out, but today clearly there were more buyers coming back to market. Better than expected news from Labor Department on consumer prices send Dow Jones higher.

Wall Street is expected to remain volatile as investors are either cashing out or remain in market for short term.

Federal Reserve Chairman Ben Bernanke left the door open for another rate cut saying that inflation pressures are moderating. Market is worried about the whole international economic downturn. The market is suffering from weak retail sales report, rising unemployment, tight credit and slumping home prices which shows substantial further deterioration.

Earlier, when government announced it would be pouring $250 billion into bank stocks market seemed to turn around from big looses. However; banks posted quarterly losses due to credit related troubles. Citigroup lost $2.8 billion in the third quarter, while Bank of American posted $5.1 billion loss.

Banks loss of money not only comes from borrowing loans but as well now troubled credit card crises as more borrowers simply cannot repay balances. After mortgage and home equity loans, next tight rules will come for credit cards.

For consumers there is no equity in homes and so they rely on their credit card balances to pay for living expenses.  Consumers hit their limit and once the limit is reached in most cases consumer will walk away from credit card leaving unpaid balance.

However, the amount of credit card debt is currently smaller than mortgage debt. There is approximately $1 trillion of unpaid credit card and over $14 trillion of mortgages. But credit card debt is piling up.

In this case credit card issuers can tighten their underwriting standard, as they have time now to prepare and reduce debt quicker than compared to mortgages.

Tighten credit will help credit card issuers but it will limit on number of borrowers. People are spending far more than they earn and this will have an effect on economy.

There will be many rejected applications; many customers will be maxed out as new credit will become tighter.