Lets see, pick a a newspaper or magazine, any one, flip to the first page, and what do you see.
If its not about the economic crisis, I suggest for you to drop that copy of FHM and pick up something decent.
Nevertheless, the recent financial crisis in the US, there's really nothing much that I can add to it that you'all probably already know. First rejection, approved on the second try, business pessimism still strong, economy's gonna be screwed for the next 1 year.
You'all know that, so there's really no point about reiterating those points at all. But I think the issue now, is how everyone else is gonna react.
Lets see what we have in our hands.
1) Globalized, Interconnected world.
2) Screwed up US Market.
3) Experience from Asian Economical Crisis
Right. So how now brown cow? On the first day of the passing of the bill, even with the good news, the Dow continued to drop. Not a good sign, investors are still unhappy, and have completely no faith in the US's economy still. The slagflation in the country would continue until the investors finally return with enough faith that the US economy won't screw up... again.
As such, with the globalized world and trade playing an epic part in almost all the economies in the world, its no shock that they all got slapped in the face that day. Stocks closing at 4%-8% below what they opened with in the day. Some countries even ordered a closure of their markets and try to cushion the impact.
Bad news, you're still gonna get screwed.
Irregardlessly, a few days after the passing of the bill, while the US economy started to go down at a slowing rate, incrediblely the world's economies started to bounce back! With Singapore hitting back on 4% after dropping 4% initially. (That's still a significant loss btw, those who dun understand, do your maths. =D) Australia managed to come back with a respectable 4% after an 8% drop. Europe continued to take a big hit except for most of Central and Eastern Europe, which was almost unaffected at all. Incredible. The Middle East also remained mostly stable with their 3.5% growth. (ALL HAIL OILLLL! & a small bit of domestic investment.) Nevertheless, with the rapidly dropping oil prices, we'll see them screwed soon.
Now, this rebounce, some has been attributed it to the respective countries' sound management after the first day of the passing of the bill. I say, no, simply because it has taken effect far too quickly. Even a first year Economics student knows that Time Lag applies in Monetary Policies. When you add liquidity into your economy, and increase the money supply of your country to decrease domestic inflation and thus decrease the price of exports to improve international competitiveness, it TAKES TIME.
It ain't a, one-day-straight-away-happen situation. However, actions made long before that day, would have indeed played quite a part in this rebounce we have. So saved Singaporean investors... (Unless you invested in a certain "Safe Bonds" from a certain "Lehman", then my condolences to you, but I think your money is gone, so take what you have.) go thank your MAS. Cause the increased liquidity added late last month that reduced interest rates probably saved our country's ass substantially.
However, it also drew upon me that this would be the perfect timing for any hardcore investor to try and earn his coffers right now. So increased investments in every other market except for Western ones may also explain such a situation as well actually. But I highly doubt such a small amount of people would create such a big change. (We all know Australia is more Asia than America. Lols.)
To EY: We both lose, the Polish's gonna win I think.
If its not about the economic crisis, I suggest for you to drop that copy of FHM and pick up something decent.
Nevertheless, the recent financial crisis in the US, there's really nothing much that I can add to it that you'all probably already know. First rejection, approved on the second try, business pessimism still strong, economy's gonna be screwed for the next 1 year.
You'all know that, so there's really no point about reiterating those points at all. But I think the issue now, is how everyone else is gonna react.
Lets see what we have in our hands.
1) Globalized, Interconnected world.
2) Screwed up US Market.
3) Experience from Asian Economical Crisis
Right. So how now brown cow? On the first day of the passing of the bill, even with the good news, the Dow continued to drop. Not a good sign, investors are still unhappy, and have completely no faith in the US's economy still. The slagflation in the country would continue until the investors finally return with enough faith that the US economy won't screw up... again.
As such, with the globalized world and trade playing an epic part in almost all the economies in the world, its no shock that they all got slapped in the face that day. Stocks closing at 4%-8% below what they opened with in the day. Some countries even ordered a closure of their markets and try to cushion the impact.
Bad news, you're still gonna get screwed.
Irregardlessly, a few days after the passing of the bill, while the US economy started to go down at a slowing rate, incrediblely the world's economies started to bounce back! With Singapore hitting back on 4% after dropping 4% initially. (That's still a significant loss btw, those who dun understand, do your maths. =D) Australia managed to come back with a respectable 4% after an 8% drop. Europe continued to take a big hit except for most of Central and Eastern Europe, which was almost unaffected at all. Incredible. The Middle East also remained mostly stable with their 3.5% growth. (ALL HAIL OILLLL! & a small bit of domestic investment.) Nevertheless, with the rapidly dropping oil prices, we'll see them screwed soon.
Now, this rebounce, some has been attributed it to the respective countries' sound management after the first day of the passing of the bill. I say, no, simply because it has taken effect far too quickly. Even a first year Economics student knows that Time Lag applies in Monetary Policies. When you add liquidity into your economy, and increase the money supply of your country to decrease domestic inflation and thus decrease the price of exports to improve international competitiveness, it TAKES TIME.
It ain't a, one-day-straight-away-happen situation. However, actions made long before that day, would have indeed played quite a part in this rebounce we have. So saved Singaporean investors... (Unless you invested in a certain "Safe Bonds" from a certain "Lehman", then my condolences to you, but I think your money is gone, so take what you have.) go thank your MAS. Cause the increased liquidity added late last month that reduced interest rates probably saved our country's ass substantially.
However, it also drew upon me that this would be the perfect timing for any hardcore investor to try and earn his coffers right now. So increased investments in every other market except for Western ones may also explain such a situation as well actually. But I highly doubt such a small amount of people would create such a big change. (We all know Australia is more Asia than America. Lols.)
To EY: We both lose, the Polish's gonna win I think.
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