Is Credit Crunch already in Asia ?

[Cheekg98]

Credit Crunch in US has affected Euro Land ... so do you think it's here in Asia ?

[Detion]

Credit Crunch will not affect asia much as asian banks is very cautious when investing and speculating.

[Chrispie]

The possible economic downturn in asia prob is not due to asian banks having a credit crunch. It is the effect of the slowdown in US rippling out to our region. USA is the world's largest consumer and they support many of our financial and manufaturing industries. Prob after the contractual period is over with our delivery of goods and services to them completed, no further orders from them will really make Asia cry..

[Albeniz]

  Quote

Prob after the contractual period is over with our delivery of goods and services to them completed, no further orders from them will really make Asia cry..

 

Especially the semiconductor sector.

[Cheekg98]

[Modykoh]

hope sg can ride over the bumpy months..

[Qpik]

i do not know but with this crisis, we might see the true colours of those "FTs"

[Marquee]

Asia dun have credit crunch. But we are facing high inflation that erode earnings. In simple word, bad time!

Edited September 7, 2008 by Marquee

[Silver_blade]

  Quote

The possible economic downturn in asia prob is not due to asian banks having a credit crunch. It is the effect of the slowdown in US rippling out to our region. USA is the world's largest consumer and they support many of our financial and manufaturing industries. Prob after the contractual period is over with our delivery of goods and services to them completed, no further orders from them will really make Asia cry..

I so agree with you. In fact many manufacturing SMEs and MNCs are already down-sized or in the process of doing so....since early this year.

[Albeniz]

  Quote

Asia dun have credit crunch. But we are facing high inflation that erode earnings. In simple word, bad time!

 

STI had a bad diarrhea recently. Nose-dived to 2574 points as of last Friday.

[Chrispie]

a lot of my friends lost a lot of money lately in their stocks. Many are still holding even they are having a 60% paper loss. I think that is silly. Think of the opportunity loss. They should have taken the loss and use the capital to find other stocks that will give them a fighting chance to make back some money. The worst hit are those that bot some of the property stocks.

 

I guess at times like this, rather than locking their money in stocks, using CFD could be a better way to get involved in the markets. But do be careful as they are on Margin.

[Curahee]

Hearsay many retrenchment gg on s far as i know.

[Silver_blade]

Looks like it for some sectors. Some co. I'm dealing with are planning to remove almost the entire department.

[Marquee]

I know finance sector has already tighten their belt but I have not heard (or know) anyone being serve with pink slip.

 

May I know which industry you are refering to? Sounds like some manufacturing based company.

[Throttle2]

confirmed....

 

Moreover compared to last year, this yr:-

Petrol Up

Parking Up

Food Up

Taxes Up

 

Generally all essentials up. inflation at historic highs.

anyway, i waiting to see if civil service "management" pay be up or down.

 

I too expect bigger portion of my bonus to be paid in share options liao......sian...

Who wants Suntec Foodcourt share options, i sell him cheap...hahahah

[Silver_blade]

Manufacturing. Electronics and semi-conductors, etc.

[Husky]

Coming soon:

 

Less demand for goods primarily in US and secondary in Europe.

 

Less tourists from both regions too.

 

 

Doesnt take a rocket scientist to guess what's going to happen next to our economy.

[Cheekg98]

more to come ...

 

US government takes over Fannie Mae, Freddie Mac

Posted: 07 September 2008 2314 hrs

Photos 1 of 2

An exterior view of mortgage finance giant Fannie Mae

 

WASHINGTON: The US government took control of mortgage giants Fannie Mae and Freddie Mac on Sunday, placing them in a government "conservatorship" to help avert a financial system meltdown from the housing crisis.

 

Treasury Secretary Henry Paulson announced a four-part plan that allows the US regulator to seize control of the government-chartered, shareholder-owned firms underpinning trillions of dollars of home loans.

 

The plan "is the best means of protecting our markets and the taxpayers from the systemic risk posed by the current financial condition" of the two government-sponsored enterprises, or GSEs.

 

"Because the GSEs are in conservatorship, they will no longer be managed with a strategy to maximise common shareholder returns, a strategy which historically encouraged risk-taking," Paulson said in a statement.

 

One key element in the plan enables the Treasury and Federal Housing Finance Agency to purchase a new class of preferred stock in the firms that "will ensure that each company maintains a positive net worth," Paulson said.

 

This will mean cash will be injected as needed, an action "more efficient than a one-time equity injection, because it will be used only as needed and on terms that Treasury has set."

 

The new plan does not eliminate the existing common and preferred shares but means they would absorb any losses ahead of the government, Paulson said.

 

"With this agreement, Treasury receives senior preferred equity shares and warrants that protect taxpayers," the Treasury chief said. "Additionally, under the terms of the agreement, common and preferred shareholders bear losses ahead of the new government senior preferred shares." - AFP/de