Largest U.S. bank reports worst ever loss

[Yewheng]

  On 7/21/2011 at 3:25 AM, Acieed said:

In reality, there's a lot of vested interest at play. Nobody will want to take the blame for causing a recession. The game is to shift the problem until the problem solves itself.

 

In reality the problem will not solve by itself just like that... I mean when there is a problem and put it one side... The problem will still be there.. The only solution is to have painful recession and reset the market.. There is no easy way out..

[Soya]

  On 7/21/2011 at 3:25 AM, Acieed said:

In reality, there's a lot of vested interest at play. Nobody will want to take the blame for causing a recession. The game is to shift the problem until the problem solves itself.

 

 

US cannot consume; Europe cannot consume; Japan cannot consume; China got nobody to manufacture for and having invested heavily in plant, machinery, building new townships to support manufacturing, worthless US treasury bonds, it's own debts pile up. When in debt, what do ppl do? Sell assets. And where are all these assets? Lots in s'pore apparently.

 

You can see how this is all gonna pan out.

[Sabbie]

  On 7/21/2011 at 3:34 AM, Soya said:

US cannot consume; Europe cannot consume; Japan cannot consume; China got nobody to manufacture for and having invested heavily in plant, machinery, building new townships to support manufacturing, worthless US treasury bonds, it's own debts pile up. When in debt, what do ppl do? Sell assets. And where are all these assets? Lots in s'pore apparently.

 

You can see how this is all gonna pan out.

 

well I see the risks, so keeping cash now but also painful to see it erode value due to inflation.....alot of question marks whether us and europe can solve its debt problems and whether it will be a hard or soft landing...

[Soya]

  On 7/21/2011 at 3:41 AM, Sabbie said:

well I see the risks, so keeping cash now but also painful to see it erode value due to inflation.....alot of question marks whether us and europe can solve its debt problems and whether it will be a hard or soft landing...

 

 

this so-called current 'soft patch' is a myth. the US and euro problems are so deep that they are basically spending tomorrow's money to solve today's problem. and it'll come a time when they can't even afford the paper which they're printing money on.

[Sabbie]

  On 7/21/2011 at 3:43 AM, Soya said:

this so-called current 'soft patch' is a myth. the US and euro problems are so deep that they are basically spending tomorrow's money to solve today's problem. and it'll come a time when they can't even afford the paper which they're printing money on.

 

I think so too, the question is when, how long as they keep on prolonging the problem because they refuse to bite the bullet

[Sabian]

  On 7/21/2011 at 3:01 AM, Acieed said:

How is MAS regulation harder than other countries ? Can help enlighten ? Just curious to know the changes since mini-bonds crisis, as I have been out of the country for quite a while.

 

The US banks actually approve no-doc loans then and their "banking regulator" (more like casino chng kay) actually allowed it to perpetuate.

 

[Sabian]

  On 7/21/2011 at 3:28 AM, Joseph22 said:

Actually i have this thoughts. if china close their door to the world again. will the situation improve??

 

as all major company have no choice but to start manufacturing their stuff in other and their own country.

 

china can't close their doors again, the genie is out of the bottle. unless they want to go back to the days of internal strife.

[Sabian]

It's not really inflation that's pushing gold prices up.

 

It's the debasing of the USD and the pricing of gold in USD that makes it look that way.

 

We had serious inflation in the past (eg: oil crisis), gold didn't go parabolic like recently.

 

The longer USD stays weak, gold will continue to climb as different holders of USD have different tolerance when it comes to moving out of USD.

 

If you take paper currencies out and compare commodity to commodity (most), you can't detect any serious inflation.

[Acieed]

 

For U.S. I know. Here they rely on a credit scoring system that doesn't make a lot of sense. They would rather loan to someone who has a good credit score because he has borrowed a lot in the past for many years, than someone who paid everything in cash and got assets to back it up. When I first arrived in the U.S., must build up credit history by taking loans. After a few months "in debt", then credit card companies and bank start to approve my application.

 

Only until around 2009, they start to require minimum down payment and other traditional measures.

 

But other than comparing Singapore with the U.S., how is Singapore regulation protected against risky investments down the supply chain ? Many investment products today are interconnected, and local banks also invest overseas certainly.

 

  On 7/21/2011 at 4:01 AM, Sabian said:

The US banks actually approve no-doc loans then and their "banking regulator" (more like casino chng kay) actually allowed it to perpetuate.

 

[Sabian]

  On 7/21/2011 at 3:41 AM, Sabbie said:

well I see the risks, so keeping cash now but also painful to see it erode value due to inflation.....alot of question marks whether us and europe can solve its debt problems and whether it will be a hard or soft landing...

 

I think the Japanese also thought this way in the 90s when their imperial palace = California.

 

Since then, they are so mentally scarred by the experience, they have this mentality to hold $$ first and buy later.

[Joseph22]

  On 7/21/2011 at 4:03 AM, Sabian said:

china can't close their doors again, the genie is out of the bottle. unless they want to go back to the days of internal strife.

 

 

i was thinking, with the size and land of china, they close door 10 years still can self sufficent

[Sabian]

  On 7/21/2011 at 4:09 AM, Acieed said:

For U.S. I know. Here they rely on a credit scoring system that doesn't make a lot of sense. They would rather loan to someone who has a good credit score because he has borrowed a lot in the past for many years, than someone who paid everything in cash and got assets to back it up. When I first arrived in the U.S., must build up credit history by taking loans. After a few months "in debt", then credit card companies and bank start to approve my application.

 

Only until around 2009, they start to require minimum down payment and other traditional measures.

 

But other than comparing Singapore with the U.S., how is Singapore regulation protected against risky investments down the supply chain ? Many investment products today are interconnected, and local banks also invest overseas certainly.

 

It's the overall posture their banking regulators take since Greenspan days and when they took the USD off the gold standard (which meant they can print as much as they liked) and repealing of the Glass-Steagall Act (which meant there is no longer separation of the bank's own money and the depositor's money).

 

It's like your insurance company collects your premium after 11 mths, it looks at that stash collected from all their customers and decides to "invest" it in bubble tea joints, within 2 weeks, the venture folds and in the 12th month, you make a claim, they tell you, we got no more $$, the govt is pressured to come in bec no one slapped them when they fell asleep.

 

So how? They create $$, not by printing (duh), we are in the digital age. But the effect is the same. Banks get "recapitalised". The customer gets his (depreciated) money back. The banks effectively passed a virtual hat around and anyone holding USD and to a lesser extent (in most cases) other currencies contributed to it.

 

It's the path of least resistance...to where?(still unfolding)

 

 

[Sabian]

  On 7/21/2011 at 4:11 AM, Joseph22 said:

i was thinking, with the size and land of china, they close door 10 years still can self sufficent

 

knn...then who will buy all the underwear they will be churning out?

 

of course, the rest of the world will just have to wear their underwear twice, inside out, due to the shortage...

[Acieed]

Right, so due to globalisation, Singapore is also not spared by this phenomenon right ?

 

[Joseph22]

  On 7/21/2011 at 4:29 AM, Sabian said:

knn...then who will buy all the underwear they will be churning out?

 

of course, the rest of the world will just have to wear their underwear twice, inside out, due to the shortage...

 

 

then we might need a COE to buy underwear to prevent shortage

[Sabian]

  On 7/21/2011 at 4:37 AM, Acieed said:

Right, so due to globalisation, Singapore is also not spared by this phenomenon right ?

We are price taker(as per Tony Tan), ie: we go with the ebb and flow and being so open (meaning $$ can flow in and out fast), we will not be spared.

 

Our banks (maybe Canada's as well) can weather the onslaught better but doesn't mean we will not get hurt and finance, while being a significant part of our economy, does not represent the entire economy. Other sectors will be hit and may not weather the downturn so well.

 

Sentiment/ "wants" driven businesses will be hit hardest. Industries that need to relocate will take opportunity to do so.

 

So amidst all the c--k-ups by the 3 ex-Ministers and 1 current anti-gay minister, thumbs up for Tharman. His biggest test is lying in wait.

Edited July 21, 2011 by Sabian

[Joseph22]

Singapore dont worry. when world economic crisis. mean going to have war. meaning, singapore defend industries going to prosper. so faster go join these industries.

[Latka]

  On 7/21/2011 at 2:46 AM, Yewheng said:

http://www.facebook.com/l.php?u=http%3A%2F...amp;h=KAQCOfWfd

 

I mean you all must really watch those few clips I posted on Peter Schiff talks and you all will understand what I mean.. When will those accesser give bad rating to make bank look bad? Those people also don't want to lose job.. On the ground everything seems ok.. But what happen underground no one will knows.. Sometimes even those top people up also do not know also.. How?

 

Ironically, those that were giving good credit ratings to the banks even tho they knew they were already in trouble back then are part of Obama's economic team.

Its all a farce.