Solutions to global financial woes
-
Often we complain and moan about mistakes of others. We never look inward. The financial recession is more a panic reaction to an average problem caused by a minority. By complaining, we are only contributing more to the gloom and doom.
Time for a reality check.
Money does not disappear into thin air. For every loss, it becomes someone else's gain. Example; - Alpha insurance loss $300 billion in stock - it only means someone else had withdrew $300 billion from Alpha insurance and the money is either sitting at their home or invested in govt bonds.
The govt injects $1.2 trillion dollars into the market. It only means $1.2 trillion dollars will be flowing in business sectors. Even if it fails to move market, THERE IS $1.2 TRILLION DOLLARS IN SOME PEOPLE'S HOME!
We had seen the capability of graduate finance experts, which left much to be desired. They were the ones who created the mess.
Now is the time for another group of intelligent people to find a solution to create wealth - HOW TO GET SOME PEOPLE, OR MOST PEOPLE, TO CONTRIBUTE THEIR MONEY BACK INTO THE FINANCIAL SYSTEM!
My Nobel Peace prize solution is:- ENTERTAINMENT INDUSTRY!
People are now hoarding money. Keynesian theory had been proven right to keep the capitalist and democratic system working - MONEY MUST FLOW. People are not trusting banks or investment. But people are human. They have needs and one of them is to feel good - be entertained.
Media moguls better get together and be creative, come up with fantastic 'feel good factors' to make people contribute their money into the market. Acting industry's great names crowd pullers must get into the act. Writers and script writers get wired with new bulbs. New and better games be in the pipeline, etc, etc.
MONEY MUST FLOW, or we will be facing amageddon 2009.
-
The reason for recession that many believe is that the market needs to undergo correction every now and then. And from history, it has been estimated that such major recessions occur in about a ten year cycle.
The last major one was 1997
And the one before that, 1987
And in the 1970s
etc
etcAlready when I learned about this cycle thing in 2001 during my A level economics, I knew the importance of finding a job before year 2008. That is the reason why I applied for, and got a position, in 2005. And that's why although I graduated in 2008, I have a job; it's very much harder to find one right now.
There has been excessive money flowing around the economy because most of our money are in digital form, especially in the stock market. This is already very very different from ancient times, where money wasn't used as a medium (digital somemore), but when barter trade was more common. And that is one reason why gold is a good hedge against inflation.
However, in times of recession, there are still certain things that people must spend on. This includes food and healthcare, and the telecom industry.
-
The govt's role now is NOT to spread confusion and worry about the economy. IT is already a forgone conclusion we are facing amageddon next year with the collapse of the world economy.
Drop the blame game or the export indices, savings or 'confidence' in the banking investment systems!
The govt's role now is TO MAKE THE PEOPLE FEEL GOOD! By making the money hoarders feel good, , satisfy to their human needs, will they dare to contribute money back into the system.With money back,in the entertainment industry, will they pump the money into banks and investments, and the circulation of wealth spreads to the poor to get jobs and pay for necessities.
-
Savings is great and cool. Money on hand is always best. But the paltry 'kept at home' savings by est of 80% of the human population on Earth is not gonna last for long.
With no investments or loans, companies will fold, things and even basic necessities will only become more expensive as 'economies of scale' will be gone overnight. It becomes more expensive to manufacture a product for sale and ultimately, 80% of Earth human's savings will be wipe out within months.
However, if these 80% of human were to plough back just a fraction of the savings, it will help grease our financial system to work again. MONEY NEEDS TO FLOW!
Set up spectacles of the like we have never seen before! Jump start the economy through entertainment and the feel good factors. New creative advertising and promotions! Anything, anything at all, to tempt the dollar out of a saver's pocket, will the human race get jobs to live and survive this crises of epic propotions of the like never ever seen before on Earth!
The alternative - Armageddon 2009. Better to face death with a smile or a laugh on your face than to die with hunger and wet with tears. -
before we serching for solutions,lets get the facts right first.
What are the causes ot this crisis?This is a long history---
----over lendings(some over 100% of property values)
--------too much derivatives,lack of reguations
Few decades of mis management cause this crisis.
Dunt call this Sub prime crisis.For sub prime loans plays only 15 to 20
% in all mortgages.
Find out NGO who force banks awards loans to the poor.
My old threads gave u more..
http://www.sgforums.com/forums/10/topics/303285
.....
read this
http://www.nytimes.com/2008/10/09/business/economy/09greenspan.html?_r=2&th&emc=th&oref=slogin&oref=slogin
http://en.wikipedia.org/wiki/Subprime_crisis_impact_timeline
1968 - 1989
- 1968: The Government mortgage-related agency, Federal National Mortgage Association (Fannie Mae) is converted from a federal government entity to a stand-alone government sponsored enterprise which purchases and securitizes mortgages to facilitate liquidity in the primary mortgage market. The move takes the debt of Fannie Mae off of the books of the government.
- 1970 Federal Home Loan Mortgage Corporation (Freddie Mac) is created by an act of Congress, as a GSE, to buy mortgages on the secondary market, pool them, and sell them as mortgage-backed securities to investors on the open market
- 1974: Equal Credit Opportunity Act imposes heavy sanctions for financial institutions found guilty of discrimination on the basis of race, color, religion, national origin, sex, marital status, or age
- 1977: Community Reinvestment Act passed to require banks and savings and loan associations to offer credit to lower income individuals and small businesses et seq.)[1][2]
- 1980: The Depository Institutions Deregulation and Monetary Control Act of 1980 granted all thrifts, including savings and loan associations, the power to make consumer and commercial loans and to issue transaction accounts, but with little regulatory oversight of competing banks; also exempted federally chartered savings banks, installment plan sellers and chartered loan companies from state usury limits.[3]
- 1981: Each Federal Reserve bank establishes a Community Affairs Office to ensure compliance with Community Reinvestment Act.[4][5]
- 1985–1991: Savings and Loan Crisis caused by rising interest rates and over development in the commercial real estate sector, and exacerbated by deregulation of savings and loan lending standards and a reduction in capital reserve requirements from 5% to 3%.[citation needed]
- 1986–1991: New homes constructed dropped from 1.8 to 1 million, the lowest rated since World War II.[6]
- 1989: Financial Institutions Reform, Recovery and Enforcement Act ("FIRREA") enacted which established the Resolution Trust Corporation (RTC), closing hundreds of insolvent thrifts and moved regulatory authority to the Office of Thrift Supervision (OTS); required federal agencies to issue Community Reinvestment Act ratings publicly[7]
[edit] 1992
- 1992:Federal Housing Enterprises Financial Safety and Soundness Act of 1992 required Fannie Mae and Freddie Mac to devote a percentage of their lending to support affordable housing increasing their pooling and selling of such loans as securities; Office of Federal Housing Enterprise Oversight (OFHEO) created to oversee them[8][9]
- 1994: Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (IBBEA) repeals the interstate provisions of the Bank Holding Company Act of 1956 that regulated the actions of bank holding companies.
- 1995: New Community Reinvestment Act regulations break down home-loan data by neighborhood, income, and race; encourage community groups to complain to banks and regulators by allowing community groups that marketed loans to collect a brokers fee[10]; Fannie Mae allowed to receive affordable housing credit for buying subprime securities.[9]
- 1997: Mortgage denial rate of 29 percent for conventional home purchase loans[11]
- July: The Taxpayer Relief Act of 1997 expanded the capital-gains exclusion to $500,000 (per couple) from $125,000, encouraging people to invest in second homes and investment properties.[12]
- November: Fannie Mae helped First Union Capital Markets and Bear, Stearns & Co launch the first publicly available securitization of CRA loans, issuing $384.6 million of such securities. All carried a Fannie Mae guarantee as to timely interest and principal.[13][14]
- 1998: Incipient housing bubble as inflation-adjusted home price appreciation exceeds 10%/year in most West Coast metropolitan areas[15]; Inflation-adjusted home price appreciation exceeds 10%/year in most West Coast metropolitan areas[16]
- October: "Financial Services Modernization Act" killed in Senate because of no restrictions on Community Reinvestment Act-related community groups written into law[17]
- 1999:
- September: Fannie Mae eases the credit requirements to encourage banks to extend home mortgages to individuals whose credit is not good enough to qualify for conventional loans.[18]
- November: Gramm-Leach-Bliley Act "Financial Services Modernization Act" repeals Glass-Steagall Act, deregulates banking, insurance and securities into a financial services industry allow financial institutions to grow very large; limits Community Reinvestment Coverage of smaller banks and makes community groups report certain financial relationships with banks[17]
- 2000:
- October: Fannie Mae committed to purchase and securitize $2 billion of Community Investment Act-eligible loans, [19][20]
- November: Fannie Mae announced that the Department of Housing and Urban Development (“HUD”) would soon require it to dedicate 50% of its business to low- and moderate-income families" and its goal was to finance over $500 billion in Community Investment Act-related business by 2010.[21]
- December:Commodity Futures Modernization Act of 2000 defines interest rates, currency prices, and stock indexes as "excluded commodities," allowing trade of credit-default swaps by hedge funds, investment banks or insurance companies with minimal oversight[22], and contributing to 2008 crisis in Bear Stearns, Lehman Brothers, and AIG.[23][24][25]
- 1995–2001: Dot-com bubble and collapse
[edit] 2001-2006
- 2000–2003: Early 2000s recession (exact time varies by country)
- 2000-2001: US Federal Reserve lowers Federal funds rate 11 times, from 6.5% (May 2000) to 1.75% (December 2001),[26] creating an easy-credit environment that encouraged less-qualified home buyers and investments in higher yielding subprime mortgages.[27]
- 2002: Annual home price appreciation of 10% or more in California, Florida, and most Northeastern states.[28]
- June 17: President G.W. Bush sets goal of increasing minority home owners by at least 5.5 million by 2010 through billions of dollars in tax credits, subsidies and a Fannie Mae commitment of $440 billion to establish NeighborWorks America with faith based organizations.[29]
- 2002–2003: Mortgage denial rate of 14 percent for conventional home purchase loans, half of 1997[11]
- 2003: Fannie Mae and Freddie Mac buy $81 billion in subprime securities.[9]
- June: Federal Reserve Chair Alan Greenspan lowers federal reserve’s key interest rate to 1%, the lowest in 45 years.[30]
- September: Bush administration recommended moving governmental supervision of Fannie Mae and Freddie Mac under a new agency created within the Department of the Treasury. The changes were blocked by Congress.[31]
- 2003-2007: The Federal Reserve failed to use its supervisory and regulatory authority over banks, mortgage underwriters and other lenders, who abandoned loan standards (employment history, income, down payments, credit rating, assets, property loan-to-value ratio and debt-servicing ability), emphasizing instead lender's ability to securitize and repackage subprime loans.[22]
- 2004:
- U.S. homeownership rate peaked with an all time high of 69.2 percent.[32]
- HUD ratcheted up Fannie Mae and Freddie Mac affordable-housing goals for next four years, from 50 percent to 56 percent, stating they lagged behind the private market; from 2004 to 2006, they purchased $434 billion in securities backed by subprime loans[9]
- October:SEC effectively suspends net capital rule for five firms - Goldman Sachs, Merrill Lynch, Lehman Brothers, Bear Stearns and Morgan Stanley. Freed from government imposed limits on the debt they can assume, they levered up 20, 30 and even 40 to 1[33]
- 2004-2005: Arizona, California, Florida, Hawaii, and Nevada record price increases in excess of 25% per year.[citation needed]
- 2005:
- February: The Office of Thrift Supervision implemented new rules that allowed savings and loans with over $1 billion in assets to meet their CRA obligations without investing in local communities, cutting availability of subprime loans.
- September: The FDIC, Federal Reserve, and the Office of the Controller of the Currency allow loosening of Community Reinvestment Act requirements for "small" banks, further cutting subprime loans.[34][10]
- Fall 2005: Booming housing market halts abruptly; from the fourth quarter of 2005 to the first quarter of 2006, median prices nationwide dropped of 3.3 percent.[35]
- 2006:
- May: In possibly the first casualty of the looming subprime crisis, Kirkland, Washington based Merit Financial Inc. files for bankruptcy and closes its doors, firing all but 80 of its 410 employees; Merit’s marketplace had declined about 40% and sales were not bringing in enough revenue to support overhead.[30]
- August: U.S. Home Construction Index is down over 40% as of mid-August 2006 compared to a year earlier.[36]
- ...............
-
Originally posted by eagle:
The reason for recession that many believe is that the market needs to undergo correction every now and then. And from history, it has been estimated that such major recessions occur in about a ten year cycle.
The last major one was 1997
And the one before that, 1987
And in the 1970s
etc
etcAlready when I learned about this cycle thing in 2001 during my A level economics, I knew the importance of finding a job before year 2008. That is the reason why I applied for, and got a position, in 2005. And that's why although I graduated in 2008, I have a job; it's very much harder to find one right now.
There has been excessive money flowing around the economy because most of our money are in digital form, especially in the stock market. This is already very very different from ancient times, where money wasn't used as a medium (digital somemore), but when barter trade was more common. And that is one reason why gold is a good hedge against inflation.
However, in times of recession, there are still certain things that people must spend on. This includes food and healthcare, and the telecom industry.
Wah.. good foresight sia.. apply for job 3 years before graduation.. -
My cousin is encouraging me to work here for a while before getting back to sg...
-
1 more reason why recession happen its because
people are not spenting their money.. and this really affect the golbal economy
-
Originally posted by lionnoisy:
before we serching for solutions,lets get the facts right first.
What are the causes ot this crisis?This is a long history---
----over lendings(some over 100% of property values)
--------too much derivatives,lack of reguations
Few decades of mis management cause this crisis.
Dunt call this Sub prime crisis.For sub prime loans plays only 15 to 20
% in all mortgages.
Find out NGO who force banks awards loans to the poor.
My old threads gave u more..
http://www.sgforums.com/forums/10/topics/303285
.....
read this
http://www.nytimes.com/2008/10/09/business/economy/09greenspan.html?_r=2&th&emc=th&oref=slogin&oref=slogin
http://en.wikipedia.org/wiki/Subprime_crisis_impact_timeline
1968 - 1989
- 1968: The Government mortgage-related agency, Federal National Mortgage Association (Fannie Mae) is converted from a federal government entity to a stand-alone government sponsored enterprise which purchases and securitizes mortgages to facilitate liquidity in the primary mortgage market. The move takes the debt of Fannie Mae off of the books of the government.
- 1970 Federal Home Loan Mortgage Corporation (Freddie Mac) is created by an act of Congress, as a GSE, to buy mortgages on the secondary market, pool them, and sell them as mortgage-backed securities to investors on the open market
- 1974: Equal Credit Opportunity Act imposes heavy sanctions for financial institutions found guilty of discrimination on the basis of race, color, religion, national origin, sex, marital status, or age
- 1977: Community Reinvestment Act passed to require banks and savings and loan associations to offer credit to lower income individuals and small businesses 12 U.S.C. § 2901 et seq.)[1][2]
- 1980: The Depository Institutions Deregulation and Monetary Control Act of 1980 granted all thrifts, including savings and loan associations, the power to make consumer and commercial loans and to issue transaction accounts, but with little regulatory oversight of competing banks; also exempted federally chartered savings banks, installment plan sellers and chartered loan companies from state usury limits.[3]
- 1981: Each Federal Reserve bank establishes a Community Affairs Office to ensure compliance with Community Reinvestment Act.[4][5]
- 1985–1991: Savings and Loan Crisis caused by rising interest rates and over development in the commercial real estate sector, and exacerbated by deregulation of savings and loan lending standards and a reduction in capital reserve requirements from 5% to 3%.[citation needed]
- 1986–1991: New homes constructed dropped from 1.8 to 1 million, the lowest rated since World War II.[6]
- 1989: Financial Institutions Reform, Recovery and Enforcement Act ("FIRREA") enacted which established the Resolution Trust Corporation (RTC), closing hundreds of insolvent thrifts and moved regulatory authority to the Office of Thrift Supervision (OTS); required federal agencies to issue Community Reinvestment Act ratings publicly[7]
[edit] 1992
- 1992:Federal Housing Enterprises Financial Safety and Soundness Act of 1992 required Fannie Mae and Freddie Mac to devote a percentage of their lending to support affordable housing increasing their pooling and selling of such loans as securities; Office of Federal Housing Enterprise Oversight (OFHEO) created to oversee them[8][9]
- 1994: Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (IBBEA) repeals the interstate provisions of the Bank Holding Company Act of 1956 that regulated the actions of bank holding companies.
- 1995: New Community Reinvestment Act regulations break down home-loan data by neighborhood, income, and race; encourage community groups to complain to banks and regulators by allowing community groups that marketed loans to collect a brokers fee[10]; Fannie Mae allowed to receive affordable housing credit for buying subprime securities.[9]
- 1997: Mortgage denial rate of 29 percent for conventional home purchase loans[11]
- July: The Taxpayer Relief Act of 1997 expanded the capital-gains exclusion to $500,000 (per couple) from $125,000, encouraging people to invest in second homes and investment properties.[12]
- November: Fannie Mae helped First Union Capital Markets and Bear, Stearns & Co launch the first publicly available securitization of CRA loans, issuing $384.6 million of such securities. All carried a Fannie Mae guarantee as to timely interest and principal.[13][14]
- 1998: Incipient housing bubble as inflation-adjusted home price appreciation exceeds 10%/year in most West Coast metropolitan areas[15]; Inflation-adjusted home price appreciation exceeds 10%/year in most West Coast metropolitan areas[16]
- October: "Financial Services Modernization Act" killed in Senate because of no restrictions on Community Reinvestment Act-related community groups written into law[17]
- 1999:
- September: Fannie Mae eases the credit requirements to encourage banks to extend home mortgages to individuals whose credit is not good enough to qualify for conventional loans.[18]
- November: Gramm-Leach-Bliley Act "Financial Services Modernization Act" repeals Glass-Steagall Act, deregulates banking, insurance and securities into a financial services industry allow financial institutions to grow very large; limits Community Reinvestment Coverage of smaller banks and makes community groups report certain financial relationships with banks[17]
- 2000:
- October: Fannie Mae committed to purchase and securitize $2 billion of Community Investment Act-eligible loans, [19][20]
- November: Fannie Mae announced that the Department of Housing and Urban Development (“HUD”) would soon require it to dedicate 50% of its business to low- and moderate-income families" and its goal was to finance over $500 billion in Community Investment Act-related business by 2010.[21]
- December:Commodity Futures Modernization Act of 2000 defines interest rates, currency prices, and stock indexes as "excluded commodities," allowing trade of credit-default swaps by hedge funds, investment banks or insurance companies with minimal oversight[22], and contributing to 2008 crisis in Bear Stearns, Lehman Brothers, and AIG.[23][24][25]
- 1995–2001: Dot-com bubble and collapse
[edit] 2001-2006
- 2000–2003: Early 2000s recession (exact time varies by country)
- 2000-2001: US Federal Reserve lowers Federal funds rate 11 times, from 6.5% (May 2000) to 1.75% (December 2001),[26] creating an easy-credit environment that encouraged less-qualified home buyers and investments in higher yielding subprime mortgages.[27]
- 2002: Annual home price appreciation of 10% or more in California, Florida, and most Northeastern states.[28]
- June 17: President G.W. Bush sets goal of increasing minority home owners by at least 5.5 million by 2010 through billions of dollars in tax credits, subsidies and a Fannie Mae commitment of $440 billion to establish NeighborWorks America with faith based organizations.[29]
- 2002–2003: Mortgage denial rate of 14 percent for conventional home purchase loans, half of 1997[11]
- 2003: Fannie Mae and Freddie Mac buy $81 billion in subprime securities.[9]
- June: Federal Reserve Chair Alan Greenspan lowers federal reserve’s key interest rate to 1%, the lowest in 45 years.[30]
- September: Bush administration recommended moving governmental supervision of Fannie Mae and Freddie Mac under a new agency created within the Department of the Treasury. The changes were blocked by Congress.[31]
- 2003-2007: The Federal Reserve failed to use its supervisory and regulatory authority over banks, mortgage underwriters and other lenders, who abandoned loan standards (employment history, income, down payments, credit rating, assets, property loan-to-value ratio and debt-servicing ability), emphasizing instead lender's ability to securitize and repackage subprime loans.[22]
- 2004:
- U.S. homeownership rate peaked with an all time high of 69.2 percent.[32]
- HUD ratcheted up Fannie Mae and Freddie Mac affordable-housing goals for next four years, from 50 percent to 56 percent, stating they lagged behind the private market; from 2004 to 2006, they purchased $434 billion in securities backed by subprime loans[9]
- October:SEC effectively suspends net capital rule for five firms - Goldman Sachs, Merrill Lynch, Lehman Brothers, Bear Stearns and Morgan Stanley. Freed from government imposed limits on the debt they can assume, they levered up 20, 30 and even 40 to 1[33]
- 2004-2005: Arizona, California, Florida, Hawaii, and Nevada record price increases in excess of 25% per year.[citation needed]
- 2005:
- February: The Office of Thrift Supervision implemented new rules that allowed savings and loans with over $1 billion in assets to meet their CRA obligations without investing in local communities, cutting availability of subprime loans.
- September: The FDIC, Federal Reserve, and the Office of the Controller of the Currency allow loosening of Community Reinvestment Act requirements for "small" banks, further cutting subprime loans.[34][10]
- Fall 2005: Booming housing market halts abruptly; from the fourth quarter of 2005 to the first quarter of 2006, median prices nationwide dropped of 3.3 percent.[35]
- 2006:
- May: In possibly the first casualty of the looming subprime crisis, Kirkland, Washington based Merit Financial Inc. files for bankruptcy and closes its doors, firing all but 80 of its 410 employees; Merit’s marketplace had declined about 40% and sales were not bringing in enough revenue to support overhead.[30]
- August: U.S. Home Construction Index is down over 40% as of mid-August 2006 compared to a year earlier.[36]
- ...............
-
Originally posted by youyayu:
1 more reason why recession happen its because
people are not spenting their money.. and this really affect the golbal economy
You mean our govt not spending as much as it should?
Now it must to fork out a huge sum to bail out the failed financial institutions?
If banks don't lend money, businesses will declare bankrupt and fold up. Retrenchment will follow.
I think global govt must bail out the banks but the CEOs must be penalised for their failures.
-
Dear Lionnoisy,
To find out the causes for the current financial crises will take a long time for it is too complex and too deeply entrenched within the corridors of coporate and governmental powers. Many in the world would be dead long before the causes can be determined.
We are facing an Extinction Level Event of a unpredecented scale of the likes never seen before. Allow me to briefly explain.
There was once when i quit my job and live on my savings of $70,000 for one year to pursue my interests in the arts. I only spent on basic and average necessities of clothing, lodging and meals, not on frivilous expenditures. In one year's time, my savings of $70,000 was gone.
The average life savings of a family of 3 or 4 after 10 years would probably be estimated around $60,000, excluding CPF in the case of Singaporeans. For retirerees, it would probably be an average of $30,000.
Should everyone withdraw their savings from banks in panic, and live frugally, how long would their savings last? Without money, banks ceases to exist, or those that remained, would give low interests and not even bother lending money. WIthout money, where can there be capital to set up enterprises and create jobs? WIthout jobs, how are humans going to survive?
Majority of mankind are now living in urban centres. When their money runs out, they will be homeless, and attempts will be made to move back to countrysides, which are owned and will only cause trespassing, leading eventually to barbarism in order to survive. The strongest will survive, which means in the end, only 1 person will be left alive on our planet- the strongest. 99.9% of the human race will be eventually wiped out. When the last mortal earthling dies, mankind will be extinct.
Thus, we are, with brutual honesty, facing an extinction level event before our eyes. I would have preferred a meteor strike, at least death would be instantaneous and not long drawned in months watching your loved ones and those you care about die like flies around you if you yourself survive long enough.
But there is a way out to prevent mankind's extinction, and that is to -KEEP MONEY CIRCULATING. There is no need for frivolous or profligate spending. Just continue spending on items that meets your needs normally, and seek investments with a smaller percentage of savings, either with recapitalised banks or blue chip stocks. In this way, every single cent on every dollar will eventually be circulated within the global economy - jobs and wealth creation.
Science fiction writers and movie producers often depict extinction level events as caused by external events such as mythical aliens, meteors, nature's biological and physical changes. In truth, we men may be the ones who will eventually do ourselves in without even external help.The propensity for idiocy in mankind is as natural as earth's regular platonic shifts. Havard colleges should be closed immediately and its files be sized for investigation. The rot and mess propably began at that elitist education centre of business fools. Rest assured, that when investigations complete, someone will be made to pay the price for almost annhilating mankind
Fortunately, what men can destroy, so to can men rebuilt. If you, my fellow reader, had considered my post, and send out emails to 6 of your friends ( the world is only separated from you by only 6 persons) to continue spending and not hoard money, you will be one those latter kind - the kind that will save and rebuilt the world, not only for yourselves, but for your loved ones and those you cared about as well. Never under-estimate the power of your own click on mouse to send an email. It might just save the world.Thanks for reading my post.
-
In some ways, its not really extinction that you are talking about. But a "total-reset" button of the economic system that we know of.
Time to convert currency into precious metals. Buy guns and prepare for............. FALLOUT 3!
-
Originally posted by Shotgun:
In some ways, its not really extinction that you are talking about. But a "total-reset" button of the economic system that we know of.
Time to convert currency into precious metals. Buy guns and prepare for............. FALLOUT 3!
wah bro...u sound so serious..surely u dun want that thing to happen right?...
economy will go further down if that happens...hmm...
-
Originally posted by xtreyier:
Money does not disappear into thin air. For every loss, it becomes someone else's gain. Example; - Alpha insurance loss $300 billion in stock - it only means someone else had withdrew $300 billion from Alpha insurance and the money is either sitting at their home or invested in govt bonds.
The govt injects $1.2 trillion dollars into the market. It only means $1.2 trillion dollars will be flowing in business sectors. Even if it fails to move market, THERE IS $1.2 TRILLION DOLLARS IN SOME PEOPLE'S HOME!
Hmm ..... not sure what u r relating to but if it's the stock market u r talking about, it isn't always a zero sum game. The last stock price is a result of the last person's bid, and that can create a notional value that all the stocks are worth this much. This creates, to a certain extent, a false sense of impression. Just because the last paid $100 for Stock A doesn't mean everyone will. At some point in time people start bailing out and that's when everything comes crashing down.
-
"At some point, people will start bailing out."
That point had been already been breached. Now you are watching everyone bailing out, causing stocks to dive rapidly. A panic reaction which serves no one any good, as even good blue chip money making stocks as well as banks get hit as well on a massive global scale.
What's happening isn't the end of the world...at least no yet, as most moneys are now kept at home instead of being put to use in banks for lending and investments. There still is money by humans, which is a trading commodity for exchange of goods.
The bad news is that such money will run out soon. Even quicker for those who have little money. Without replenishing such money thru jobs, savings will run dry. Bank's arent lending money, which means enterprises have no capital for investments, expansions, creating new jobs or even buying machineries.
The poor will be the first to die off. The middle classes a little later, and the rich will have to spend huge sums buying protection for themselves and loved ones.
All this can be prevented. It only needs your dollar, to circulate within the economy and wealth will be passed on to everyone, not kept at home. -
There are trillion of dollars now being kept at most home, espacially in the western world. It is winter season there. In order to get those money, we need to tempt them to spend those money here in tropical sunny and warm Asia.
STPB will have to work overtime. Free airfare, accomodation, gifts,etc? Those money NEEDS TO CIRCULATE to starve off amargeddon 09!
Rather than to spread doom and gloom, play the blame game, lets for once think of the harm it will do to majority of our people as well as those in the world. Solutions are needed.Singapore may be the first in Asia to go into recession - having no natural resource and being an entreport for shipping goods from Asia to the west - we wont be the last. More will come if nothing is being down.
Taking a peg off the haughty Singapore may be fun to some, but real people get hurt in the process.They may starve to death soon. No govt in the world has that kind of money to feed everyone forever, more so if money is kept at home and not being put to use.Only you and you alone have the power to save the world collectively. To rebuilt by spreading the message of hope or to destroy mankind by spreading more fear and panic is truly now in your fingertips.
-
Originally posted by xtreyier:
There are trillion of dollars now being kept at most home, espacially in the western world. It is winter season there. In order to get those money, we need to tempt them to spend those money here in tropical sunny and warm Asia.
Only you and you alone have the power to save the world collectively. To rebuilt by spreading the message of hope or to destroy mankind by spreading more fear and panic is truly now in your fingertips.
so u're advocating spending to boost the economy now ? I've read that from one of my econs textbooks somewhere b4. It's counterintuitive but apparently it's the best way to go.
-
Gold and silver solution? It work in the middle ages but not practical in our modern day economy...
To cite aristotle about money: It's about laws and trust in the society that set the creation and supply of money not backed by commodities as this global bankers haveus believed.
Usury and unearned wealth is the root of our monetary woes...even gambling seems to be more wholesome as one needed to play to win and not unearned wealth from the labour of the masses....
Full reserve banking control by the government elected in good faith seems to be the only way out in the long term after this great recession bottoms out..free ourselves from the matrix of private banking cartel that seems to be instrumental in our inflation and deflation worldwide
-
Originally posted by xtreyier:
Often we complain and moan about mistakes of others. We never look inward. The financial recession is more a panic reaction to an average problem caused by a minority. By complaining, we are only contributing more to the gloom and doom.
Time for a reality check.
Money does not disappear into thin air. For every loss, it becomes someone else's gain. Example; - Alpha insurance loss $300 billion in stock - it only means someone else had withdrew $300 billion from Alpha insurance and the money is either sitting at their home or invested in govt bonds.
The govt injects $1.2 trillion dollars into the market. It only means $1.2 trillion dollars will be flowing in business sectors. Even if it fails to move market, THERE IS $1.2 TRILLION DOLLARS IN SOME PEOPLE'S HOME!
We had seen the capability of graduate finance experts, which left much to be desired. They were the ones who created the mess.
Now is the time for another group of intelligent people to find a solution to create wealth - HOW TO GET SOME PEOPLE, OR MOST PEOPLE, TO CONTRIBUTE THEIR MONEY BACK INTO THE FINANCIAL SYSTEM!
My Nobel Peace prize solution is:- ENTERTAINMENT INDUSTRY!
People are now hoarding money. Keynesian theory had been proven right to keep the capitalist and democratic system working - MONEY MUST FLOW. People are not trusting banks or investment. But people are human. They have needs and one of them is to feel good - be entertained.
Media moguls better get together and be creative, come up with fantastic 'feel good factors' to make people contribute their money into the market. Acting industry's great names crowd pullers must get into the act. Writers and script writers get wired with new bulbs. New and better games be in the pipeline, etc, etc.
MONEY MUST FLOW, or we will be facing amageddon 2009.
Wow, didn't know we have a financial guru here!
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I am no guru. Just an ordinary layman.
With banks now fully guaranteeing deposits, perhaps it is high time the human race starts depositing their savings back there.Already the underworld are on a high recruitment drive for it is bonus time for their criminal efforts with the human race keeping liquid cash at home. No home can be secured enough for the desperate criminal. You as well as your love ones may even be hurt, murdered or scarred for life.
Money lost can always be earned back in time, but once you lost your life, you lost all. You and your love ones' lives are precious. Please keep your money in banks.
Many would be happy for that 1 or 2 percent intrest earn. If someone offers more, who wouldnt be attracted? It is such that MBA conmen lure victims into such crises.There was no need for collaterised debts instruments in our world for banks to earn money to pay intrests and profit. By investing in solid fundimental and growing companies, they would have earn enough to pay depositors. I guess the lessons had been learnt.
Ultimately, the human life is precious. Do not keep money at home. Espacially now. It will save your life as well as keep the economy going and even save the world. Please help spread the word. It will save lives. -
Originally posted by xtreyier:
There are trillion of dollars now being kept at most home, espacially in the western world. It is winter season there. In order to get those money, we need to tempt them to spend those money here in tropical sunny and warm Asia.
STPB will have to work overtime. Free airfare, accomodation, gifts,etc? Those money NEEDS TO CIRCULATE to starve off amargeddon 09!
Rather than to spread doom and gloom, play the blame game, lets for once think of the harm it will do to majority of our people as well as those in the world. Solutions are needed.Singapore may be the first in Asia to go into recession - having no natural resource and being an entreport for shipping goods from Asia to the west - we wont be the last. More will come if nothing is being down.
Taking a peg off the haughty Singapore may be fun to some, but real people get hurt in the process.They may starve to death soon. No govt in the world has that kind of money to feed everyone forever, more so if money is kept at home and not being put to use.Only you and you alone have the power to save the world collectively. To rebuilt by spreading the message of hope or to destroy mankind by spreading more fear and panic is truly now in your fingertips.
LOL.. rubbish..
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me dun like to keep money at home
because i always cant rem where i placed there
leh
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This global crisis had taught Singapore export manufacturers a valuable lesson on its dependence of the US market. It may be late, but it is still never too late to diversify.
China had been eyed as a huge market of 1.3 billion people. Even though their purchasing power may be lower than US market, its sheer volume is more than enough to keep our exporters smiling ear to ear.
The only thing is - what does China needs that it cannot produce on its own other than oil?
The answer can be found in the latest milk scandal - TRUST
Their quality control and hygience checks are horrible and will never be able to measure up to the standards of the world anytime soon if ever due to the size of the population. Corruption is rampant no matter how clean they will ever try to be. Asians will be asians. The mentally to gain at all costs is monumental.
Thus, our strict health control reputation may be a sought after label in the chinese market, in food products such as soya sauces, drinks, etc. We could even purchase raw materials from asia and label it with our reputation and repackaged it to China.
Not only in food products, but in medical and even other products where TRUST is an issue no China family has faith in their national administration.
Hopefully it may help our diversification into the China market and help us steer clear of future 'technical recessions' and even path the way for the rest of the world to tap into the 1.3 billion people market. -
Originally posted by googoomuck:
You mean our govt not spending as much as it should?
Now it must to fork out a huge sum to bail out the failed financial institutions?
If banks don't lend money, businesses will declare bankrupt and fold up. Retrenchment will follow.
I think global govt must bail out the banks but the CEOs must be penalised for their failures.
i think those people with huge paychecks can really spent their money now.. if not company will fold no matter how much money they loan from the banks..
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me dun like to keep money at home
because i always cant rem where i placed there
leh
keep in soda biscuit tin. and write on the tins, SGDxxx amount on it and put it beside the TV. you will definitely remember