Quite few weeks before, there was a comment on one of my article about Depression in 2008, which I boldly ruled out. But two weeks back, I have started seeing the D word to swing across many people and I did write an article "Face of Depression in 2008". While I was writing "Face of Depression..." I was one amoung many who believed that 2008 has been fixed by Fed's action moves to make it not like 1930 (Great Depression). But I dont think we are shore yet....
Yet another violent week last week, with General Electric profit miss and weak 2008 outlook battered stocks Friday and put investors on edge. Fallout from losses at General Electric and other factors pointing to a U.S. recession hit global stock markets hard.
The rippling effect of US economy on other foreign nationals started showing up. European stocks dropped for the fifth session in a row as weak corporate results continued to spook investors. Japan's average index lowered around 3% approx. The IMF forecast U.S. economic growth to be 0.5% in 2008 and the downturn is expected to hamper growth in other Western nations. (IMF forecast also noted that India & China will have a slight lower economic impact in 2009).
Finance chiefs from the Group of Seven rich nations did show concern about the credit crisis rippling around the world. (This indeed shows how nations have been inter linked with each other). With exchange rate fluctuations going high .. Euro raised too much against dollar last week. This has raised so much concern amoung as the fear of global economy imbalances may cause prominent issues.
Retail which drives the huge percentage of GDP formula of America, showed very sluggish growth. Which clearly shows the lack of consumer confidence.
At this stage or considering first quater of 2008... with rising oil prices which has hiked commodity prices across the world and the rising food prices, many foreclosures, job losses across the nation - Just bad days, my friends, Just bad days.
Monday, April 14, 2008
Wednesday, April 9, 2008
Last week in Wall Street:
Apologize for the late article this week. Not sure what the hell I was doing, but I did became lazy.
Anyway, last week in Wall Street, who cares ah??? :) To date, the recent liquidity measures implemented by the Federal Reserve seem to have been helpful in addressing some of the strains in financial markets. Funding pressures appear to have eased somewhat, and liquidity seems to have improved in several markets. But "while acknowledging for the first time that the economy may be in a recession", Bernanke told the Joint Economic Committee of Congress last week that the Fed's actions ``will help to promote growth over time and to mitigate the risks to economic activity.''
Joint economic committee meeting was indeed very interesting to watch. Ben did take many jabs but did stood put in the 13 round boxing match with the congressmen. To me, many of the congressmen questions looked very legitimate to me. One of the congressmen did asked Ben to explain what assets were taken as collateral by Fed for 30 Billion dollar and are those assets worth?
Not many solid answers for this question, raised the question to me personally, that did Fed made a sound investment in this Bear's deal or they just helped to avoid a economy meltdown. Lets put this way, if Bear's dont pay in 10 years, (I believe the deal is for 10 years)... Fed own's those assets.. I dont think Fed would have taken just a plain pan shop as collateral, may be some sky scrappers in waters street, who knows....
Anyway, I was reading an article on the salary of the Top CEO's of the Wall street, damn fuckers, they earn around 31 Million Dollar/Year. And the average mean salary of an asian men in America is 53,000$. Yes, they are the key to the business world, but 31 Million, that is f***ing big.
Yet another blow to the economy came with the news that, Job loss was estimated to be 80,000 just for March. Wallstreet Journal came with the estimate to anticipate further job cuts. But honestly, from my friends circle in wall street, trading floor. Not many of layoffs happening this season because of the lesson wall street learned during last bubble. During 2001, due to a bubble, wall street did layoff many people, but when the economy boomed, they couldnt find the resources back. They say, companies have flushed many stupid junks who used to sit in office seat and rubbing the rubber with their ass.
Anyway, last week in Wall Street, who cares ah??? :) To date, the recent liquidity measures implemented by the Federal Reserve seem to have been helpful in addressing some of the strains in financial markets. Funding pressures appear to have eased somewhat, and liquidity seems to have improved in several markets. But "while acknowledging for the first time that the economy may be in a recession", Bernanke told the Joint Economic Committee of Congress last week that the Fed's actions ``will help to promote growth over time and to mitigate the risks to economic activity.''
Joint economic committee meeting was indeed very interesting to watch. Ben did take many jabs but did stood put in the 13 round boxing match with the congressmen. To me, many of the congressmen questions looked very legitimate to me. One of the congressmen did asked Ben to explain what assets were taken as collateral by Fed for 30 Billion dollar and are those assets worth?
Not many solid answers for this question, raised the question to me personally, that did Fed made a sound investment in this Bear's deal or they just helped to avoid a economy meltdown. Lets put this way, if Bear's dont pay in 10 years, (I believe the deal is for 10 years)... Fed own's those assets.. I dont think Fed would have taken just a plain pan shop as collateral, may be some sky scrappers in waters street, who knows....
Anyway, I was reading an article on the salary of the Top CEO's of the Wall street, damn fuckers, they earn around 31 Million Dollar/Year. And the average mean salary of an asian men in America is 53,000$. Yes, they are the key to the business world, but 31 Million, that is f***ing big.
Yet another blow to the economy came with the news that, Job loss was estimated to be 80,000 just for March. Wallstreet Journal came with the estimate to anticipate further job cuts. But honestly, from my friends circle in wall street, trading floor. Not many of layoffs happening this season because of the lesson wall street learned during last bubble. During 2001, due to a bubble, wall street did layoff many people, but when the economy boomed, they couldnt find the resources back. They say, companies have flushed many stupid junks who used to sit in office seat and rubbing the rubber with their ass.
Thursday, April 3, 2008
Time Vs Life (Not the Magazines)
Recently I heared a folk song "Cat’s in the Cradle". This song was sung by Harry Chapin in 1974. There is ofcourse quite a controversy in this song, that this was not performed by Harry but it was by Cat Stevens. I am not sure how many Cat Stevens fan read my article...
The song is about the life of a busy man who isn’t there when his son grows up and who, in old age, is ignored by the son, who is very busy and grew up just like the father. The singer regrets not having spent time with the son, yet at the same time he describes his own busy life. (Read the lyrics of this song or listen it once, it is worth like the song "Life in a fast lane" by Eagles).
I wonder whether, had the father spent more time with the son, the son would have been better off. The father wouldn’t have earned as much, and the son wouldn’t have had the financial security that the father’s earnings enabled him to have, but they would have had more time together.
One is always constrained by both time and the ability to consume goods. And I believe its upto any individual to make that choice. In my sense, except for those who inherit large fortunes from great great grandfathers, the choice comes down to additional earnings and resources for one’s family, or more time with the family.
I think, you can never blame anyone, because thats the choice or road which anyone takes. Its the balance one identifies as balanced; but may look imbalance to others or to himself only he himself sees with his third eye. I am sure this applies to me too.
The song is about the life of a busy man who isn’t there when his son grows up and who, in old age, is ignored by the son, who is very busy and grew up just like the father. The singer regrets not having spent time with the son, yet at the same time he describes his own busy life. (Read the lyrics of this song or listen it once, it is worth like the song "Life in a fast lane" by Eagles).
I wonder whether, had the father spent more time with the son, the son would have been better off. The father wouldn’t have earned as much, and the son wouldn’t have had the financial security that the father’s earnings enabled him to have, but they would have had more time together.
One is always constrained by both time and the ability to consume goods. And I believe its upto any individual to make that choice. In my sense, except for those who inherit large fortunes from great great grandfathers, the choice comes down to additional earnings and resources for one’s family, or more time with the family.
I think, you can never blame anyone, because thats the choice or road which anyone takes. Its the balance one identifies as balanced; but may look imbalance to others or to himself only he himself sees with his third eye. I am sure this applies to me too.
Subscribe to:
Posts (Atom)