another boring day at the office. yes and we have tv's in the lift. so most major markets around the world are down again... its like a chain effect following the lack of investor confidence due to panic selling. although the 700billion bailout plan was approved, markets continued to fall. i think that investors have lost confidence in the plan and the US govt's ability to save the financial system. so what if you have the 700billion plan? its going to be in effect slowly. we need the liquidity now assholes. i'd rather the US govt never had this plan and instead tried to save failing banks like what they did to AIG, or fannie mae and freddie mac. i felt that IF the us govt had prevented lehman brothers from bankruptcy, things would have been different. slightly. there would be more confidence in the market and it probably would not have been so bad, as people would not be as tight with their money as now. and, singaporeans are so kia si. come on la. would you honestly think AIG would fail? what would happen to man utd then. nah just kidding, jokes aside. AIG is of too much importance in world markets for the us govt to actually allow it to fail. why terminate your insurance policies? if something happens, you are going to need it most during this period of financial turmoil. no bank is gonna lend you money for medical. and MAS has assured us that AIA has met the required reserve ratio for enough liquidity, and true enough, it posted financial figures to tell singaporeans straight to the face " I told you so, assholes." yes. AIG's stock rebounded and some suckers who suckered out were left to lick their wounds. and AIA has also been kind enough to offer dumb singaporeans who terminated their policies a chance to reinstate their policies at no charge. i wonder who actually reinstated theirs. like a singaporean is going to an AIA office embarrassed, and the AIA staff sniggering implying that they did something stupid. yeah, thanks goodness the us govt saved AIG with a 85billion dollar loan. if they didnt.... HAHA. govts around the world will ostracize the us govt and cut off their balls. i was reading this article on why the 700billion dollar plan would not work. i forgot the points. yeah but i what i remembered was that by buying up toxic assets, the price which the assets are bought would be overvalued. which i totally agree on. it defeats the purpose of readjusting the maket to its equilbrium level. and by buying up these assets, the govt is either going to sell them low or hold it. what for? what the banks need now is equity injection to improve liquidity. But, consumers are not going to invest, especially not now. nor are they going to spend to stimulate the economy either. they are keeping their money in their pockets or in commodities, which apparently now appears to be inflated. eg gold. what some banks are doing now, they are encouraging more equity injection through more share offerings. which is exactly what the other banks should do. since interbank lending is non-existent now and credit is mostly frozen, interest rates would definately be low. loans would be cheaper. but with much much much much more stringent lending conditions.
so it all started with the lehman brothers. blame who? now. the financial turmoil is spreading towards europe and asia. i think europe will be quite bad. for asia not so. most growth is driven by internal factors and is self sustaining. at least for now. for most asian countries at least. except japan. haha. poor guys. many of their banks have over exposed their assets to american financial assets. so now they will be feeling the pinch. as for the others, its not so bad.
i rather play forex. whether markets are up or down, you can profit, its a zero sum game. just what the world financial system needs now, speculating assholes like me. who dont give a damn about other people's money. hahaha. sorry. good luck to all.