wall street bailout is just the beginning of the worse
-
While it may look superficially similar to the recent implosions of such investment giants as Fannie Mae, Freddie Mac and Lehman, the takeover and bailout of AIG is quite different, and means that the market is entering the next and even more dangerous phase. What is driving the fall of AIG – and potential government losses that may far, far exceed the $85 billion bailout announced late on September 16th - is not mortgages or real estate (directly), but fears that AIG’s huge, global credit-default swap positions will unravel. The $62 trillion dollar credit derivatives market is 50 times the size of the subprime mortgage derivatives market, and is indeed larger than the entire global economy.
is indeed USA or the world is going into full recession, it will unravel possibly more serious problems in the world financial market.
Maybe soon the problem will be spread to credit company such as American express and ...
conclusion: thinking of buying a new car? new house? renovation loan? singapore will be shield from the world recession as mention by our Minister of finance.
i urge all singaporeans to be very very cautious in your next investment strategy.
-
BRavo my fuller!!,
Ok!! guys you Heard my Fooler speech, any comments please, please mind your words ok, dun said i never warn you all.
Waffen SS
3rd Pansia tank division
for General Rommel
-
-
i agree. i think that many of us still have an impression that we are shielded from an impending US recession due to decoupling theories, strong SGD, a still-very-low unemployment ratio etc etc.
I always use the number of people going to restaurants as an economic indicator, and right now this indicator is telling me that our economy is still going on strong.
Maybe we will be facing more problems in the coming year.
-
oh and maybe next year we wont be bragging about a 4.5% average rate of return on our assets anymore.
-
next to fall are credit card companies
-
Originally posted by mrwonderful:
next to fall are credit card companies
oh, is it, then me go shopping first lor, credit into credit cards, then once they fall n go bust, me shop free -
For the third quarter, prices of non-landed private residential properties decreased by two per cent in Core Central Region and 2.1 per cent in Rest of Central Region.
Prices of non-landed properties outside the Central Region rose 0.1 per cent.** this is the just the start of fall of mid-high tier property prices.**.
-
oh, is it, then me go shopping first lor, credit into credit cards, then once they fall n go bust, me shop free
i dont think so. such debt are normally bought over by the other corporation if it is not nationalise.
-
the reason of us being able to shield most of the downturn impact, is because we got lots of saving both in personal and govt.
Our saving culture is a good tool to overcome all these impact, saving for raining day can be deem as kiasu to certain country peoples, but it is a good kiasu strategy, hmmm..my piggy pigs still full..
-
The bailout will cause a massive influx of funds into the USD economy. While it may help soothe the economy a little, it could possibly cause problems in the future.
To me, it's like drinking a soup heavily laden with MSG to quench your thirst. Your thirst does get quenched for a short while, but you will get even more thirsty later on.
This influx could like bring the USD very much lower....
My investment strategy now would be to buy defensive stocks, and hold on to some cash to wait for the blue chips to fall a bit further before buying up.
-
Originally posted by eagle:
The bailout will cause a massive influx of funds into the USD economy. While it may help soothe the economy a little, it could possibly cause problems in the future.
To me, it's like drinking a soup heavily laden with MSG to quench your thirst. Your thirst does get quenched for a short while, but you will get even more thirsty later on.
This influx could like bring the USD very much lower....
My investment strategy now would be to buy defensive stocks, and hold on to some cash to wait for the blue chips to fall a bit further before buying up.
i moved to govt bonds, fix deposit, cooperative shares and some buried at my backyard garden under the banana tree.I take these downturn as an opportunity rather than a risk
-
there are winners and losers at every turn of the economic situation.
-
actually i was thinking about it. Does anyone think there are signs of a market bottom? Why do I think so?
1) the VIX index is at 40 plus (dunno exact figure) but historically anything above 30 is a sign of a market bottom.
2) Warren Buffet thinks its time to invest in equities again. Goldman Sachs and GE. But granted, he's investing in preferred stock giving him a 10% dividend.
3) this $700B rescue plan/ bailout package, whatever u call it, would inject liquidity into the US financial system and create a secondary market for these mortgage backed securities (although it hasnt been passed im assuming it has).
-
Originally posted by angel7030:
i moved to govt bonds, fix deposit, cooperative shares and some buried at my backyard garden under the banana tree.I take these downturn as an opportunity rather than a risk
if you were not `burnt' this time round, it is time to take the offensive. of cos, i am not asking you to plunge your life savings in, but `more bullish than the usual'.
-
Originally posted by redDUST:
if you were not `burnt' this time round, it is time to take the offensive. of cos, i am not asking you to plunge your life savings in, but `more bullish than the usual'.
Who said i dun get burnt,
i am looking at the bear bottom peak, where and when is the bottom is still very vague, so far i dun invest in bank shares, no doubt, they are blue chip with high return, i have no trust in their investment, my focus is on marine and engineering shares, so far i am doing quite well under my daddy name, but then the bloody keppel share gone down by half, aiya, heart pain lor -
some analyst from OCBC securitie are predicting STI could be heading 2100 or lower in coming mths.
personally i think we are heading there.
the market are now focusing too much on bailout plan. the economy weather bell company such as DELL, INTEL are already indicating a slower demand in mth ahead. GE, GM are issueing missing forcast estimate.
once the bailout plan are pass by house of representative, the funds manager will start to focus the real state of economy and it aint showing any signs of recovery but a sign of a slow recession in regions such as States, Japan, Western europe, central american.
-
actually i was thinking about it. Does anyone think there are signs of a market bottom? Why do I think so?
1) the VIX index is at 40 plus (dunno exact figure) but historically anything above 30 is a sign of a market bottom.
2) Warren Buffet thinks its time to invest in equities again. Goldman Sachs and GE. But granted, he's investing in preferred stock giving him a 10% dividend.
3) this $700B rescue plan/ bailout package, whatever u call it, would inject liquidity into the US financial system and create a secondary market for these mortgage backed securities (although it hasnt been passed im assuming it has).
frankly i dont think our stock market has bottom. because the financial crisis if not in the early stages are definintely not the final stages.
1.the crisis has already spread from USA to europe as more european govt are bailing out their own mortage company and banks.
2. it has started to spread to china. when one of its biggest insurance " ping An" made a staggering 2.3billions USD lost on its investment in trouble investment bank fortis.
3. the 700billion bailout might not work, as banks might not want to sell it toxic mortages to the US treasury if they are going to lost billions of dollars. what is the true value of these assets? it may take more time to nego, discussion before these liquidity can be felt by the normal consumers.
4. Even if the banking crisis is over in half to 1 year time, next come the problems of global recession. As you can see company such as GE, Intel, Dell has already miss sales forecast and predicted a slowdown demand. lot of singapore company that depends on HDD business, precison engineering business, OEM, ODM business will be badly hit. not to mention sectors that already in slowdown are property, banking will definitely report lower profits compare q to q.
-
i not personally not optimistic especially on private property.
the drop in prices reported is mth or quarter is just the beginning.
many of the TOP are set to be launch end of early next year. many of such units are speculators which will sell their unit if property prices continue to slide.
how long this small developers are able to hold on to their units? can they finance their debts? frankly, i wont be surrpise, if many of these small developers sell their unit at a lost. or worse case, bankrupt. the longer the hold, they more lost they are going to incurred.
-
i not personally not optimistic especially on private property.
the drop in prices reported is mth or quarter is just the beginning.
many of the TOP are set to be launch end of early next year. many of such units are speculators which will sell their unit if property prices continue to slide.
how long this small developers are able to hold on to their units? can they finance their debts? frankly, i wont be surrpise, if many of these small developers sell their unit at a lost. or worse case, bankrupt. the longer the hold, they more lost they are going to incurred.
-
Singapore banks only insure 20,000 per account yes ?
LOL.
Be careful where you put your money hor.... donch say I never warn you ah.
-
put your money where temasek put theirs and you are alot safer!
-
Originally posted by reyes:
put your money where temasek put theirs and you are alot safer!
lealli ? Can you guarantee that ? LOL
-
reyes,
so u have any better suggestions other than wall street bailout?
-
lealli ? Can you guarantee that ? LOL
i can only suggest DBS bank.
defintely can gurantee all your saving than what it stated officially SGD 20,000.