Tuesday, November 18, 2008

The Homefront

We are almost plunging into a new global recession if the problems plaguing the U.S. economy from the financial crisis griping the movement of this once economic power of the world is not averted even with the rescue package given by the federal government a few weeks ago. The U.S. economy is losing ground the other time with Dow Jones and NASDAQ losing points on trading day. Investors are pulling away their investments in stocks, banks and other financial instruments after the public have lost their confidence with these companies. Greed became the main ingredient of this chaotic times with majority of companies profit raking effort have turned against them which started at first with the subprime crisis on real estate on which the credit crunch.

Germany and Japan had already put on the "We are now on recession banner" and have stepped plans to curb the lay-offs where most of those affected are the manufacturing industry especially the automobile makers from Daimler Benz, Opel, Nissan, Mitsubishi and others. Iceland on the hand is the first nation to file bankruptcy with it government piling up debts even if they are the most ecologically friendly nation in using renewable energy like geothermal plants and others.

A few weeks ago, I was reading this article published in the Philippine Stock Exchange website. "RP Stocks among least affected in Asia". It was a good news indeed that we survive a bit from being banged up a few weeks ago. But I still feel at lost with the trading of stocks I have in my investment account. My shares of investments lost ground. Mutual funds are not doing that well

Financial and banking institutions in the Philippines have learned their lessons on 1997 Asian Financial crisis. I was much happy with Jaime Zobel de Ayala's comment that the Philippines can weather the global financial crisis by tapping our local or domestic markets in opening credits for the local folks to borrow. It was a positive news to see that Filipinos are interested in putting up their own businesses amidsts the global turmoil on one segment of TV Patrol last night. I am happy that these people are resilient enough to be in the road less travelled.

I am hopeful that the Eye of the storm will pass away.

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