Wednesday, September 24, 2008
Wall Street Bloodbath
All of you knows that there is a bloodbath going on wall street nowadays. Thousands of jobs are lost because of Lehman Brothers brancruptcy and the bail out of AIG. The ripples of these corporate failures reverberate around the world including the Philippines. The stocks are down in the country, hot money flowing out and investment in the all time low.
What happened in America is the result of their lifestyle wherein they borrowed a lot of money in order to live too comfortably. The banks and other investment entities smelling profit from the American consumers lend a lot of money even without collateral. This loan is what they call NINJA loan meaning lending money to people with No Income, No Job and Assets. It is the ultimate recipe for failure. Because of this greediness, the Americans are suffering the pain of losing their homes, their jobs and their standing in the world.
In this country this NINJA loans will not happen because our banking system is too conservative. The threat in our country is not what is happening in America but what is happening inside.
The politicians have no concrete plans to stave off inflation.They are busy spending their time debating on insertion and C-5 contreversy. What a curse!
The economists are in illusion that the government is ready on Americas depression. We are not. With the Americans tighthening their belt, there will be less investment, remittance and business going to the country. Do we hear a concrete plan?. Without the OFW money that fueling consumption we will be already on our knees.
This is the time for all the Filipino families to help one another. Let us go back to basic and enjoy everything without spending a lot of money.
We are in a situation like the Japanese in the '50s. They are hungry not only for food but for respect. Then they act relentlessly from the top echelons of the government to the street sweeper in rebuilding their country.
Do we have a tenacity to do it?