Source: Yuri Kageyama, AP Business Writer
Monday January 21, 10:34 pm ET
Asian Markets Extend Losses Amid Worries That US Is Headed for Recession
TOKYO (AP) -- Global stock markets extended their shakeout into a second day Tuesday, plunging amid worries that a possible U.S. recession will cause a worldwide economic slowdown. The dramatic declines were expected to spread to Wall Street, where stock index futures were already down sharply hours before the trading day began.
Japan's Nikkei 225 index, the benchmark for Asia's biggest bourse, skidded 4.4 percent in morning trading to 12,738.31 points, after dropping 3.9 percent Monday. Hong Kong's Hang Seng index was down 5.2 percent after plunging 5.5 percent the day before.
"Unless we get some positive 'shock effects,' such as drastic measures from the U.S. government, there is almost no hope for a recovery in stocks," said Koji Takeuchi, senior economist at Mizuho Research Institute in Tokyo.
U.S. markets were closed Monday for a holiday commemorating civil rights leader Martin Luther King Jr. But Wall Street future prices were down sharply, portending a plunge when trading begins at 9:30 a.m. Eastern time.
Dow Jones industrial average futures were down 436 points, or 3.6 percent, at 11,670, while Standard & Poor's 500 futures were down 57.1 points, or 4.3 percent, at 1,268.
Markets have been plunging amid pessimism about the ability of the U.S. government to prevent a recession. The Federal Reserve has indicated it will lower interest rates further, and President Bush has proposed an economic stimulus package that includes $145 billion in tax cuts, but investors around the world are doubtful that the measures will lift the economy quickly.
The U.S. economy has been battered by a slump in the housing market and a credit crisis that has led to billions of dollars of losses among major U.S. banks.
In Europe Monday, investors also dumped stocks, sending the Britain's benchmark FTSE-100 down 5.5 percent and France's CAC-40 Index sliding 6.8 percent. Germany's blue-chip DAX 30 plunged 7.2 percent to 6,790.19.
Takeuchi said investors feel that the selloff is spreading worldwide, setting off fears of a global downturn. Risks of economic contraction have been growing in Japan as both exports and consumer spending are weakening, he said.
Kirby Daley, strategist at Newedge Group, said the Nikkei could shed another 10 percent to 15 percent to the 11,000 level in the next few months. Japanese companies depend on exports and capital investments to keep up profits, and both are endangered if there is a U.S. slowdown, he said.
"The argument that valuations are cheap for Japanese stocks is flawed," Daley said. "The basis for those earnings valuations doesn't consider ongoing problems in the U.S. economy, which are likely to get worse."
Even usually upbeat Japanese Economy Minister Hiroko Ota acknowledged that downsides risks are growing, given the volatile markets and surging oil prices.
"The economy keeps recovering as recent production data show, but downside risks are growing these days," Ota told reporters.
Tuesday, 22 January 2008
USA: The Economy in Crisis
Source: Fortune
Monday January 21, 7:58 am ET
By Shawn Tully, editor at large
The wobbly economy is overtaking Iraq as the issue weighing most heavily on the minds of America's voters. And Washington has noticed. The White House and Congress are almost certain to enact some kind of stimulus package. But like all such temporary, feel-good measures, it will generate a quick blip in growth that will quickly evaporate. In reality only one player has the power to do anything swift and decisive: the Federal Reserve. And its chairman, Ben Bernanke, has already made his intentions abundantly clear. Unfortunately, the cure he's prescribing may be worse than the disease.
Just how low will the economy go? There are conflicting signals. It's clear that the economy is losing steam. The plummeting value of America's houses is chilling consumer spending, layoffs are mounting, and banks and other creditors burned by the subprime crisis are far more reluctant to lend to everyone from small-business owners to private equity firms. But GDP increased by 4.9% in the third quarter, and economists estimate that GDP was still growing in the fourth quarter. Exports are strong, thanks to the weak dollar. The Fed did a brilliant job last summer by flooding the banks with money to prevent a full-scale credit crunch. Credit is far more expensive today, but it's also becoming more plentiful, as demonstrated by the falling rates on everything from LIBOR - the rate at which international banks lend to each other - to junk bonds. So while a recession is a real possibility, it's not inevitable - even the Fed is not forecasting one this year. And if we do get one, it may be brief and shallow, like the one we had in 2001 - with economic growth falling by perhaps half a percentage point for a couple of quarters, and unemployment rising from its current 5% to 5.5% or 6%.
By cutting rates early and often, Bernanke is acting as though a recession - even a mild one - would be a calamity that must be avoided at all costs. He has already reduced the Fed funds rate (which banks pay when they borrow from each other) by one point, to 4.25%, and promises to "take substantive additional action as needed to support growth," a pledge that Wall Street interprets as meaning at least another half-point cut at the Fed's meeting on Jan. 29, if not sooner.
Many on Wall Street back Bernanke. "I'll defend the Fed," says Bear Stearns chief economist David Malpass. "Part of the slowdown is the result of banks' tightening credit, and you help that by lowering the Fed funds rate." Mickey Levy of Bank of America agrees: "You need to lower rates to offset the drag on housing."
But Bernanke is setting the stage for an even bigger recession down the road. Just as the ultra-low rates of the early 2000s created many of the problems we're experiencing today, pumping money into the system would probably stoke inflation, forcing the Fed to hike rates sharply in the near future. "It's better to take a small recession and kill inflation immediately instead of facing high inflation and a really big recession later," says Carnegie Mellon economist Allan Meltzer.
Meltzer, who is finishing the second volume of his history of the Federal Reserve, warns that Bernanke is risking a disastrous replay of the 1970s, when high oil prices fueled double-digit inflation. Every time the Fed started to tighten and unemployment jumped, chairmen G. William Miller and Arthur Burns lost their nerve. They lowered rates to boost job growth, and inflation inevitably revived, causing a vicious price spiral. The Fed let the disease rage for so long that it took draconian action by chairman Paul Volcker in the early 1980s to finally defeat inflation. The price was a deep recession, with unemployment hitting 11% in 1982. "The mentality is the same as in the 1970s," says Meltzer. "'As soon as we get rid of the risk of recession, we'll do something about inflation.' But that comes too late."
Indeed, while the economy is sending mixed messages about growth, the signs of increasing inflation are flashing bright red. For 2007 the consumer price index rose 4.1%, the biggest annual increase in 17 years. Gold, historically a reliable harbinger of inflation, set an all-time high of more than $900 an ounce. The dollar is languishing at a record low against the euro and a weighted basket of international currencies. "Flooding the market with liquidity is a disaster for the purchasing power of the dollar," says David Gitlitz, chief economist for Trend Macrolytics.
The Fed's supporters tend to downplay those dangers. They contend that the inflation surge is being driven largely by energy costs. Since oil isn't likely to rise from its near-$100 level, inflation is likely to tail off in 2008. "That argument is wrong," says Brian Wesbury, chief economist with First Trust Portfolios, an asset-management firm. "As people spend less to drive to the golf course, they will spend the extra money on golf clubs or other products. The Fed wants to reflate the economy, so the money that went into higher oil prices will drive up the prices of other goods."
Fed supporters also point out that the yield on ten-year Treasury bonds stands at just 3.8%, a figure that implies that investors expect inflation to be around 2% in future years. So if inflation is really expected to rage, why aren't interest rates far higher? The explanation is twofold. First, government bonds are hardly a foolproof forecaster. For example, five years ago Treasury yields were predicting 2% inflation over the next five years, and the actual figure was 3%, or 50% higher. Second, investors are so skittish about most stocks and corporate bonds that they're paying a huge premium for safe investments, chiefly U.S. Treasuries. "It's all about a flight to safety," says Meltzer. Stand by for a major rise in yields as the reality of looming inflation sinks in.
So what is the right course for the Fed? Bernanke should hold the Fed funds rate exactly where it is now, at 4.25%. Standing pat might well push the economy into a recession. But the Fed's newfound vigilance on inflation would boost the dollar, effectively lowering the prices of oil and other imports. America would suffer a short downturn and restore price stability, paving the way to a strong recovery in 2010 or 2011.
Sadly, the Fed has already chosen sides. It's likely to lower rates every time growth slows or joblessness rises. As a result, it will never tame inflation until it becomes a clawing, bellowing threat. Then we'll have to suffer a real recession, the kind we suffered in the aftermath of a time we should study and shouldn't forget - the 1970s.
Monday January 21, 7:58 am ET
By Shawn Tully, editor at large
The wobbly economy is overtaking Iraq as the issue weighing most heavily on the minds of America's voters. And Washington has noticed. The White House and Congress are almost certain to enact some kind of stimulus package. But like all such temporary, feel-good measures, it will generate a quick blip in growth that will quickly evaporate. In reality only one player has the power to do anything swift and decisive: the Federal Reserve. And its chairman, Ben Bernanke, has already made his intentions abundantly clear. Unfortunately, the cure he's prescribing may be worse than the disease.
Just how low will the economy go? There are conflicting signals. It's clear that the economy is losing steam. The plummeting value of America's houses is chilling consumer spending, layoffs are mounting, and banks and other creditors burned by the subprime crisis are far more reluctant to lend to everyone from small-business owners to private equity firms. But GDP increased by 4.9% in the third quarter, and economists estimate that GDP was still growing in the fourth quarter. Exports are strong, thanks to the weak dollar. The Fed did a brilliant job last summer by flooding the banks with money to prevent a full-scale credit crunch. Credit is far more expensive today, but it's also becoming more plentiful, as demonstrated by the falling rates on everything from LIBOR - the rate at which international banks lend to each other - to junk bonds. So while a recession is a real possibility, it's not inevitable - even the Fed is not forecasting one this year. And if we do get one, it may be brief and shallow, like the one we had in 2001 - with economic growth falling by perhaps half a percentage point for a couple of quarters, and unemployment rising from its current 5% to 5.5% or 6%.
By cutting rates early and often, Bernanke is acting as though a recession - even a mild one - would be a calamity that must be avoided at all costs. He has already reduced the Fed funds rate (which banks pay when they borrow from each other) by one point, to 4.25%, and promises to "take substantive additional action as needed to support growth," a pledge that Wall Street interprets as meaning at least another half-point cut at the Fed's meeting on Jan. 29, if not sooner.
Many on Wall Street back Bernanke. "I'll defend the Fed," says Bear Stearns chief economist David Malpass. "Part of the slowdown is the result of banks' tightening credit, and you help that by lowering the Fed funds rate." Mickey Levy of Bank of America agrees: "You need to lower rates to offset the drag on housing."
But Bernanke is setting the stage for an even bigger recession down the road. Just as the ultra-low rates of the early 2000s created many of the problems we're experiencing today, pumping money into the system would probably stoke inflation, forcing the Fed to hike rates sharply in the near future. "It's better to take a small recession and kill inflation immediately instead of facing high inflation and a really big recession later," says Carnegie Mellon economist Allan Meltzer.
Meltzer, who is finishing the second volume of his history of the Federal Reserve, warns that Bernanke is risking a disastrous replay of the 1970s, when high oil prices fueled double-digit inflation. Every time the Fed started to tighten and unemployment jumped, chairmen G. William Miller and Arthur Burns lost their nerve. They lowered rates to boost job growth, and inflation inevitably revived, causing a vicious price spiral. The Fed let the disease rage for so long that it took draconian action by chairman Paul Volcker in the early 1980s to finally defeat inflation. The price was a deep recession, with unemployment hitting 11% in 1982. "The mentality is the same as in the 1970s," says Meltzer. "'As soon as we get rid of the risk of recession, we'll do something about inflation.' But that comes too late."
Indeed, while the economy is sending mixed messages about growth, the signs of increasing inflation are flashing bright red. For 2007 the consumer price index rose 4.1%, the biggest annual increase in 17 years. Gold, historically a reliable harbinger of inflation, set an all-time high of more than $900 an ounce. The dollar is languishing at a record low against the euro and a weighted basket of international currencies. "Flooding the market with liquidity is a disaster for the purchasing power of the dollar," says David Gitlitz, chief economist for Trend Macrolytics.
The Fed's supporters tend to downplay those dangers. They contend that the inflation surge is being driven largely by energy costs. Since oil isn't likely to rise from its near-$100 level, inflation is likely to tail off in 2008. "That argument is wrong," says Brian Wesbury, chief economist with First Trust Portfolios, an asset-management firm. "As people spend less to drive to the golf course, they will spend the extra money on golf clubs or other products. The Fed wants to reflate the economy, so the money that went into higher oil prices will drive up the prices of other goods."
Fed supporters also point out that the yield on ten-year Treasury bonds stands at just 3.8%, a figure that implies that investors expect inflation to be around 2% in future years. So if inflation is really expected to rage, why aren't interest rates far higher? The explanation is twofold. First, government bonds are hardly a foolproof forecaster. For example, five years ago Treasury yields were predicting 2% inflation over the next five years, and the actual figure was 3%, or 50% higher. Second, investors are so skittish about most stocks and corporate bonds that they're paying a huge premium for safe investments, chiefly U.S. Treasuries. "It's all about a flight to safety," says Meltzer. Stand by for a major rise in yields as the reality of looming inflation sinks in.
So what is the right course for the Fed? Bernanke should hold the Fed funds rate exactly where it is now, at 4.25%. Standing pat might well push the economy into a recession. But the Fed's newfound vigilance on inflation would boost the dollar, effectively lowering the prices of oil and other imports. America would suffer a short downturn and restore price stability, paving the way to a strong recovery in 2010 or 2011.
Sadly, the Fed has already chosen sides. It's likely to lower rates every time growth slows or joblessness rises. As a result, it will never tame inflation until it becomes a clawing, bellowing threat. Then we'll have to suffer a real recession, the kind we suffered in the aftermath of a time we should study and shouldn't forget - the 1970s.
Monday, 21 January 2008
Timing the Chinese Bubble, Part III
Source: Boon
Notes:
* The US consumers make up about 30% of world GNP.
* The Chinese consumers are about 10% of the US's.
* Therefore, a 1% drop in the US will need to be compensated by a 10% rise in China. Is that possible? Well, probably.
* But if the US drops by 3%, the Chinese will need a 30% of increase to balance out. That will be tough.
* Not to forget about this 'vacuum' effect. When the music is playing and the government keeps spending, everybody makes easy money.
* The biggest spending programmes in China right now are: the Olympics and the Three Gorges Dam. When are they going to be completed? Well, within 2008.
* Just not too long ago, you heard people saying that China is a bubble. You heard from the media and economists that the growth and the stock market are not sustainable.
* These days people seem to have stopped associating the word bubble with China.
Not only that. There are now theories that China could decouple from the US.
* If it looks like a bubble, walks like a bubble, and quacks like a bubble, it's a bubble!
* The most dangerous phase is when nearly everybody buys into the thinking that it can only go up!
Remember: the herds never got it right; they are to be slaughtered!
Notes:
* The US consumers make up about 30% of world GNP.
* The Chinese consumers are about 10% of the US's.
* Therefore, a 1% drop in the US will need to be compensated by a 10% rise in China. Is that possible? Well, probably.
* But if the US drops by 3%, the Chinese will need a 30% of increase to balance out. That will be tough.
* Not to forget about this 'vacuum' effect. When the music is playing and the government keeps spending, everybody makes easy money.
* The biggest spending programmes in China right now are: the Olympics and the Three Gorges Dam. When are they going to be completed? Well, within 2008.
* Just not too long ago, you heard people saying that China is a bubble. You heard from the media and economists that the growth and the stock market are not sustainable.
* These days people seem to have stopped associating the word bubble with China.
Not only that. There are now theories that China could decouple from the US.
* If it looks like a bubble, walks like a bubble, and quacks like a bubble, it's a bubble!
* The most dangerous phase is when nearly everybody buys into the thinking that it can only go up!
Remember: the herds never got it right; they are to be slaughtered!
Friday, 18 January 2008
Timing the Chinese Bubble, Part II
Source: Boon
The Hang Seng went down by more than 5% today -- a plunge of nearly 1,400 points. Is a big miss for me. My feed for the HSI is not yet ready and there's still some homework for me to do before I could provide any meaningful strategy. However, it does seem that the best point of entry, as far as I am concerned, for shorting the HSI is already gone.
The Hang Seng went down by more than 5% today -- a plunge of nearly 1,400 points. Is a big miss for me. My feed for the HSI is not yet ready and there's still some homework for me to do before I could provide any meaningful strategy. However, it does seem that the best point of entry, as far as I am concerned, for shorting the HSI is already gone.
Timing the Chinese Bubble, Part I
Source: Boon
Few days ago I posted the above note, saying that I didn't think the Dow and the S&P 500 had hit their bottoms. As what I had anticipated, both indices continued drifting lower following my posting, which preceded the disappointing US jobs report -- that I had also predicted back in September 2007. The Dow has now retraced more than 1000 points.
Now, I would like to take this opportunity to say that I am currently speculating the possibility of a collapsing Chinese stock market. Let me stress that this is still a speculation, as far as I am concerned. There is some homework I need to do before I could elaborate on my thinking further.
to be continued...
Few days ago I posted the above note, saying that I didn't think the Dow and the S&P 500 had hit their bottoms. As what I had anticipated, both indices continued drifting lower following my posting, which preceded the disappointing US jobs report -- that I had also predicted back in September 2007. The Dow has now retraced more than 1000 points.
Now, I would like to take this opportunity to say that I am currently speculating the possibility of a collapsing Chinese stock market. Let me stress that this is still a speculation, as far as I am concerned. There is some homework I need to do before I could elaborate on my thinking further.
to be continued...
Thursday, 17 January 2008
Americans pay for housing boom's excess
Source: By MADLEN READ and JOE BEL BRUNO, AP Business Writers
Wed Jan 16, 4:37 PM ET
NEW YORK - The bill for America's excessive borrowing during the housing boom has arrived, and more people are having trouble paying it.
JPMorgan Chase & Co. and Wells Fargo & Co., two of the nation's biggest banks, on Wednesday joined a growing chorus warning that the subprime mortgage mess is just the start of a sweeping lending crisis. And some fear that consumers falling behind on all kinds of loan payments could tip the economy's scale toward recession.
Strapped consumers are having a tough time making payments on credit cards, home-equity loans, and even for their cars. This has caused three of the top five U.S. commercial banks that have already reported damaging fourth-quarter results to set aside some $12.5 billion to cover future loan losses — and that number will likely grow as the year wears on.
Problems in the subprime mortgage market are rapidly spilling over into other areas of the economy. No matter what the experts call it — a recession, slowdown or even the makings of a depression — it's clear banks are under mounting pressure to be more cautious about lending.
"If consumption growth stagnates, the odds of a recession are incredibly high," said Andrew Bernard, director of the Center for International Business at the Tuck School of Business at Dartmouth. "All the pieces of household financial health are starting to be shakier, especially at the low end."
He and others are paying close attention to what top U.S. banks say about their customers' payment habits. Many view this as an early indicator about where the overall economy is headed, but there are other signs that are troublesome.
The stock market has had its worst start to the year in three decades, with investors rattled by signs from the Labor Department that unemployment is on the rise and retail sales are on the decline. Further, the Commerce Department reported Wednesday that higher costs for energy and food in 2007 pushed inflation for the year up by the largest amount in 17 years.
There was no sign of a turnaround in the last few months of the year. The Federal Reserve reported that the economy grew at a slower pace in late November and December as credit problems intensified and consumers tightened their spending.
To some, it appears that the Fed came to its rate-cutting decision in August a bit too late. Others point to the falling dollar and surging oil prices, factors that usually prevent the central bank from easing its monetary policy.
While debate persists about the Fed's timing and the extent of the slowdown, bank executives — who have scrambled to prepare for another tumble in home prices and higher unemployment in 2008, feel academic definitions are beside the point.
"We're not predicting a recession — it's not our job — but we're prepared," JPMorgan Chase CEO Jamie Dimon told analysts after the nation's third-largest bank wrote down $1.3 billion and said profit dropped 34 percent.
His financial institution didn't do all that bad. Rival Citigroup Inc. fared the worst during the fourth quarter, losing $9.83 billion after writing down the value of its portfolio of mortgage and mortgage-backed products by $18.1 billion.
Wells Fargo, a more traditional bank that avoided last year's trading woes, saw its profit fall 38 percent due to troubles with home equity loan and mortgage defaults.
JPMorgan is girding for home prices to decline further in 2008 by 5 percent to 10 percent; Citigroup's estimate of 7 percent falls within that range, too.
"The banks are the infrastructure for everything, the heartbeat of the market," said Chris Johnson, president of Johnson Research Group. "They need to be fixed before the market, and economy, can move forward with confidence. They need to get all their dirty laundry out there."
Banks and card companies like American Express Co. — which warned last week that it would add $440 million to loan loss provisions — said in the regions where home prices are declining, card default rates are rising faster. The same goes for auto loans, subprime mortgages and home equity loans in these areas, which include Florida, Michigan and California.
A big reason for the rise in credit card default rates is that they are returning to more usual levels following a change in bankruptcy law that sent rates lower for a time. But the fact that more losses are being seen in the weaker parts of the country shows the increase is economically driven as well.
Analysts believe this means one thing: Consumers will be the ones paying for years of lax lending standards by U.S. financial institutions. Many will become more restrictive about who gets credit in a bid to stem future losses — and that could curb consumer spending, which accounts for more than two-thirds of the economy.
"We've pushed the envelope," Johnson said. "Along with the joy of a market that goes as high as ours is the agony of when it starts to correct itself."
Wed Jan 16, 4:37 PM ET
NEW YORK - The bill for America's excessive borrowing during the housing boom has arrived, and more people are having trouble paying it.
JPMorgan Chase & Co. and Wells Fargo & Co., two of the nation's biggest banks, on Wednesday joined a growing chorus warning that the subprime mortgage mess is just the start of a sweeping lending crisis. And some fear that consumers falling behind on all kinds of loan payments could tip the economy's scale toward recession.
Strapped consumers are having a tough time making payments on credit cards, home-equity loans, and even for their cars. This has caused three of the top five U.S. commercial banks that have already reported damaging fourth-quarter results to set aside some $12.5 billion to cover future loan losses — and that number will likely grow as the year wears on.
Problems in the subprime mortgage market are rapidly spilling over into other areas of the economy. No matter what the experts call it — a recession, slowdown or even the makings of a depression — it's clear banks are under mounting pressure to be more cautious about lending.
"If consumption growth stagnates, the odds of a recession are incredibly high," said Andrew Bernard, director of the Center for International Business at the Tuck School of Business at Dartmouth. "All the pieces of household financial health are starting to be shakier, especially at the low end."
He and others are paying close attention to what top U.S. banks say about their customers' payment habits. Many view this as an early indicator about where the overall economy is headed, but there are other signs that are troublesome.
The stock market has had its worst start to the year in three decades, with investors rattled by signs from the Labor Department that unemployment is on the rise and retail sales are on the decline. Further, the Commerce Department reported Wednesday that higher costs for energy and food in 2007 pushed inflation for the year up by the largest amount in 17 years.
There was no sign of a turnaround in the last few months of the year. The Federal Reserve reported that the economy grew at a slower pace in late November and December as credit problems intensified and consumers tightened their spending.
To some, it appears that the Fed came to its rate-cutting decision in August a bit too late. Others point to the falling dollar and surging oil prices, factors that usually prevent the central bank from easing its monetary policy.
While debate persists about the Fed's timing and the extent of the slowdown, bank executives — who have scrambled to prepare for another tumble in home prices and higher unemployment in 2008, feel academic definitions are beside the point.
"We're not predicting a recession — it's not our job — but we're prepared," JPMorgan Chase CEO Jamie Dimon told analysts after the nation's third-largest bank wrote down $1.3 billion and said profit dropped 34 percent.
His financial institution didn't do all that bad. Rival Citigroup Inc. fared the worst during the fourth quarter, losing $9.83 billion after writing down the value of its portfolio of mortgage and mortgage-backed products by $18.1 billion.
Wells Fargo, a more traditional bank that avoided last year's trading woes, saw its profit fall 38 percent due to troubles with home equity loan and mortgage defaults.
JPMorgan is girding for home prices to decline further in 2008 by 5 percent to 10 percent; Citigroup's estimate of 7 percent falls within that range, too.
"The banks are the infrastructure for everything, the heartbeat of the market," said Chris Johnson, president of Johnson Research Group. "They need to be fixed before the market, and economy, can move forward with confidence. They need to get all their dirty laundry out there."
Banks and card companies like American Express Co. — which warned last week that it would add $440 million to loan loss provisions — said in the regions where home prices are declining, card default rates are rising faster. The same goes for auto loans, subprime mortgages and home equity loans in these areas, which include Florida, Michigan and California.
A big reason for the rise in credit card default rates is that they are returning to more usual levels following a change in bankruptcy law that sent rates lower for a time. But the fact that more losses are being seen in the weaker parts of the country shows the increase is economically driven as well.
Analysts believe this means one thing: Consumers will be the ones paying for years of lax lending standards by U.S. financial institutions. Many will become more restrictive about who gets credit in a bid to stem future losses — and that could curb consumer spending, which accounts for more than two-thirds of the economy.
"We've pushed the envelope," Johnson said. "Along with the joy of a market that goes as high as ours is the agony of when it starts to correct itself."
Monday, 31 December 2007
The Croesus Chronicles - Recession Ahead?
Source: From Robert Lenzner, 12.27.07, 6:00 AM ET
No-one knows for a certainty that 2008 will be a year of recession. Gurus are all over the map with their crystal balls, some wishfully calling for a "growth recession," while others see a very rotten time ahead indeed.
But better pay close attention--because a great deal is riding on the recession odds. There's the value of your portfolio, the cost of money, your job, the price of oil, inflation and very likely the identity of the next inhabitant of the White House. The worse the recession, I would say, the better the chances of the Democratic candidate.
According to the Economic Cycle Research Institute, seven out of 10 citizens now believe we are or will soon be in a recession. That could be a powerful sentiment slowing the economy. Certainly the credit crisis reflects that we have been in a serious slowdown for some time now. The leading home price index is at a six-year low, financial services are at a 13-year low, while non-financial services are at a 56-month low, according to figures kept by ECRI.
In Pictures: Signs We've Entered A Recession
Sounds pretty bad, doesn't it?
Be on your own personal recession watch. Carefully follow the major drivers of the economy.
Most crucial are the job figures. which are holding up, but have softened to under 100,000 new jobs last month. Any two months in a row of negative job growth--meaning there were job losses--is usually the key indicator that a recession is around the corner, asserts Lakshman Achuthan, of the ECRI, a private organization that keeps the most intensive watch over all statistical indicators of the economy.
Second, the industrial manufacturing figures, which are holding up due to exports based on the weakening dollar, are the next best barometer of the U.S. economy. Still, manufacturing is well below the June high, suggesting that this sector is "subdued," according to the ECRI December report.
Third, housing is down and expected to fall lower. Merrill Lynch (nyse: MER - news - people ) economist David A. Rosenberg says in a report that the roof caving in on housing starts with a 43% plunge in new single-family homes.
Consumer expectations are falling as confidence lags due to the inability to borrow vast amounts of money on rising home values. Interest rates, of course, are headed lower, due to the credit crunch, and may also be a sign of the recession coming. The same Merrill report suggests that chain store sales are looking very soft in the critical December holiday period, which many stores count on for a good part of their yearly turnover.
Corporate earnings are holding up for now, but are expected to slow significantly, perhaps by 16%--which represents the median decline in corporate earnings during recessions over the past 50 years, according to Morgan Stanley (nyse: MS - news - people ). "Earnings are now 62% above trend. If history repeats--and I see no reason why it shouldn't --there is a huge earnings shock coming," says Abhijit Chakrabortti, Morgan Stanley U.S. strategist. That's far more bearish than projections by Goldman Sachs (nyse: GS - news - people ) or T. Rowe Price, the mutual fund company.
Investor expectations, neither bullish nor bearish, are flat, indicating that investors can't make up their mind about the recession because they can't see it. Don't wait for the National Bureau of Economic Recession (their Business Cycle Dating Committee is the body that officially calls a recession) to tell you that we're in one, because they ordinarily wait until economic activity has fallen for six months. By then, it's too late--the stock market will have sagged.
Even the Economic Cycle Research Institute believes, based on today's figures--which are a mix of positive and negative--that a recession isn't inevitable. Yet its Weekly Leading Index has fallen to its lowest point since November 2002, suggesting, admits Achuthan, that "U.S. Economic growth prospects continue to worsen."
We are in the sixth year of an expansion, which is longer than the average post-World War II growth cycle. When an expansion gets this long in the tooth, it's time to look out below.
In Pictures: Signs We've Entered A Recession
No-one knows for a certainty that 2008 will be a year of recession. Gurus are all over the map with their crystal balls, some wishfully calling for a "growth recession," while others see a very rotten time ahead indeed.
But better pay close attention--because a great deal is riding on the recession odds. There's the value of your portfolio, the cost of money, your job, the price of oil, inflation and very likely the identity of the next inhabitant of the White House. The worse the recession, I would say, the better the chances of the Democratic candidate.
According to the Economic Cycle Research Institute, seven out of 10 citizens now believe we are or will soon be in a recession. That could be a powerful sentiment slowing the economy. Certainly the credit crisis reflects that we have been in a serious slowdown for some time now. The leading home price index is at a six-year low, financial services are at a 13-year low, while non-financial services are at a 56-month low, according to figures kept by ECRI.
In Pictures: Signs We've Entered A Recession
Sounds pretty bad, doesn't it?
Be on your own personal recession watch. Carefully follow the major drivers of the economy.
Most crucial are the job figures. which are holding up, but have softened to under 100,000 new jobs last month. Any two months in a row of negative job growth--meaning there were job losses--is usually the key indicator that a recession is around the corner, asserts Lakshman Achuthan, of the ECRI, a private organization that keeps the most intensive watch over all statistical indicators of the economy.
Second, the industrial manufacturing figures, which are holding up due to exports based on the weakening dollar, are the next best barometer of the U.S. economy. Still, manufacturing is well below the June high, suggesting that this sector is "subdued," according to the ECRI December report.
Third, housing is down and expected to fall lower. Merrill Lynch (nyse: MER - news - people ) economist David A. Rosenberg says in a report that the roof caving in on housing starts with a 43% plunge in new single-family homes.
Consumer expectations are falling as confidence lags due to the inability to borrow vast amounts of money on rising home values. Interest rates, of course, are headed lower, due to the credit crunch, and may also be a sign of the recession coming. The same Merrill report suggests that chain store sales are looking very soft in the critical December holiday period, which many stores count on for a good part of their yearly turnover.
Corporate earnings are holding up for now, but are expected to slow significantly, perhaps by 16%--which represents the median decline in corporate earnings during recessions over the past 50 years, according to Morgan Stanley (nyse: MS - news - people ). "Earnings are now 62% above trend. If history repeats--and I see no reason why it shouldn't --there is a huge earnings shock coming," says Abhijit Chakrabortti, Morgan Stanley U.S. strategist. That's far more bearish than projections by Goldman Sachs (nyse: GS - news - people ) or T. Rowe Price, the mutual fund company.
Investor expectations, neither bullish nor bearish, are flat, indicating that investors can't make up their mind about the recession because they can't see it. Don't wait for the National Bureau of Economic Recession (their Business Cycle Dating Committee is the body that officially calls a recession) to tell you that we're in one, because they ordinarily wait until economic activity has fallen for six months. By then, it's too late--the stock market will have sagged.
Even the Economic Cycle Research Institute believes, based on today's figures--which are a mix of positive and negative--that a recession isn't inevitable. Yet its Weekly Leading Index has fallen to its lowest point since November 2002, suggesting, admits Achuthan, that "U.S. Economic growth prospects continue to worsen."
We are in the sixth year of an expansion, which is longer than the average post-World War II growth cycle. When an expansion gets this long in the tooth, it's time to look out below.
In Pictures: Signs We've Entered A Recession
Thursday, 6 December 2007
Saja Je Tulis. Market Boring Tahap Maksimum
Sudah lama tak posting. Sejak Ogos hingga kini, share market sungguh membosankan. Apakah ini tandanya kelembapan ekonomi sudah bermula sebelum bermulanya zaman kemelesetan ekonomi. Blog Boon juga dah tak ada apa yang baru. Terakhir Boon iaitu Last Laugh pada sejak 22 Oktober.
Tak tau nak tulis apa la.
Kerja sedia ada semakin banyak sampai tak ada masa untuk diri sendiri. Nampaknya tahun ini tak ada apa yang sangat menarik untuk dijadikan kenangan terindah untuk tahun 2007.
Mungkin tahun 2008 yang akan menjelang akan menjadi tahun yang penuh dengan kenangan indah atau kejayaan yang tak diduga atau liku-liku yang tak diketahui penghujungnya.
Namun wajib percaya dengan Qada' dan Qadar Ilahi dan pasrah serta redha dengan apa yang telah dan akan berlaku. Aminn.
Tak tau nak tulis apa la.
Kerja sedia ada semakin banyak sampai tak ada masa untuk diri sendiri. Nampaknya tahun ini tak ada apa yang sangat menarik untuk dijadikan kenangan terindah untuk tahun 2007.
Mungkin tahun 2008 yang akan menjelang akan menjadi tahun yang penuh dengan kenangan indah atau kejayaan yang tak diduga atau liku-liku yang tak diketahui penghujungnya.
Namun wajib percaya dengan Qada' dan Qadar Ilahi dan pasrah serta redha dengan apa yang telah dan akan berlaku. Aminn.
Monday, 19 November 2007
Staying High and Dry in a Recession: by Robert Kiyosaki
There's an old saying that goes, "It's a recession if your neighbor loses his job. It's a depression if you lose your job."
Watching the financial news networks and reading the financial publications these days, you'll see many people asking if the U.S. economy is heading into a recession. From my vantage point, the answer is yes. I believe that for many people in certain industries, like real estate, the worst is yet to come.
Economic Ripple Effects
Before getting into why I think there will be a recession, it's important to know the specific definition of the term. Very simply, a recession is a decline in a country's gross domestic product (GDP) for at least two quarters. That means that by Christmas we'll know if we're in a recession or not.
In some ways, the coming recession is a product of the physical phenomenon known as precession. Precession is the effect of bodies in motion upon other bodies in motion -- or, more simply, a ripple effect, like when you throw a stone into a still pond and the waves emanating from it overlap.
While there are many such processional "waves" in the coming recession, one is the lack of integrity in the U.S. monetary system. The United States has defaulted on its financial promises many times in recent history. In 1934, we defaulted on domestic gold redemption. That year, it became illegal for U.S. citizens to own gold. Instead, the government required Americans to turn in their gold, and they were paid $20 in paper money for every ounce of gold they surrendered.
Once the gold was collected, the government raised the price of gold to $35 an ounce. Talk about a lack of integrity. And in 1968, the U.S. defaulted on silver redemption, taking U.S. dollars backed by silver out of circulation. Finally, in 1971, the U.S. defaulted on international gold redemption.
International Impact
Another reason for the coming recession is the subprime mess. And while issues related to the subprime fiasco may seem domestic, they actually have severe international consequences. The subprime mess seems to be a problem associated with lower-income people who can't afford their homes, yet it's really the tip of a very large international iceberg, and it'll affect all of us. Here's why.
In the Sept. 12, 2007, issue of Business Week, Kerry Capell asked the question, "Could any country be more exposed to the credit crunch than the U.S.?" The answer: "You bet, and that place is Britain."
Unlike many of its European neighbors, Britain shares many of America's financial traits. In the last few years, access to cheap credit in Britain has fueled a decade of economic growth, with home prices tripling in 10 years -- an even faster rise than in the United States. With cheap borrowed money, the English consumer has caused the British economy to boom; consumers are responsible for two-thirds of the British economy.
Today, Britain is more dependent upon financial services than we are. So what will happen to the world if both England and the United States go into a recession? The precessional effect is bound to be dire -- especially for working people.
Too Much Money
As strange as it may seem to the average person, the problem is not a shortage of money -- it's too much money. The world is choking on too many U.S. dollars.
Normally, when a currency gets into trouble as the dollar is now, all the country has to do is raise the interest rates on their bonds and things are fine again. But because of the subprime meltdown, the Federal Reserve can't simply raise or lower interest rates.
In simplified terms, the Fed must keep rates low in order to save the domestic economy. This causes the international economy to dump the dollar by not buying our bonds, which is one reason why the price of gold keeps going up -- it's the true international money. And the rise in its price (and in the price of oil) signals the loss of the purchasing power of the dollar; the world simply doesn't want any more dollars. This is a ripple effect from 1971, when the dollar came off the gold standard.
Less for More
The tragedy of this excess of money is that most of the world's workers have to work harder to earn less. This is because the currencies of the world are becoming less and less valuable. Even if workers get pay raises, the boost won't be able to keep pace with declines in the purchasing power of money, increases in expenses such as oil, decreases in the value of homes, declines in the value of stocks, and increases in taxes.
Just look at what's happened in the last decade. Ten years ago, gold was about $275 an ounce. Today, it's over $700. That means that, compared to gold, your income would've had to go up by 250 percent just to keep up with the loss in purchasing power of the dollar. Or, compared to oil -- which was about $10 a barrel 10 years ago and today is over $80 a barrel -- your income would've had to go up by 800 percent.
Sure, there are many people whose incomes have gone up way beyond 800 percent in the last 10 years. The problem is that most people's incomes haven't kept pace, and they're technically in a state of personal recession with no way out.
Throw Yourself a Lifeline
As the global economy continues to gyrate, you'll hear more and more people calling for the Federal Reserve to either lower or raise interest rates. The problem is that the Fed has less and less power to do much.
If it tries to save the domestic economy, the international economy will pound us. If the Fed tries to save the dollar internationally by raising interest rates, it'll kill the domestic economy.
Instead of looking to the Fed to save you, then, I recommend you save yourself by investing in real international money. One way to do so is by purchasing silver. Gold is expensive, but silver is still a bargain even for the little guy. When the recession comes, the ripple effect on your financial future will be immeasurable.
Robert Kiyosaki
Posted on October, 2007
Watching the financial news networks and reading the financial publications these days, you'll see many people asking if the U.S. economy is heading into a recession. From my vantage point, the answer is yes. I believe that for many people in certain industries, like real estate, the worst is yet to come.
Economic Ripple Effects
Before getting into why I think there will be a recession, it's important to know the specific definition of the term. Very simply, a recession is a decline in a country's gross domestic product (GDP) for at least two quarters. That means that by Christmas we'll know if we're in a recession or not.
In some ways, the coming recession is a product of the physical phenomenon known as precession. Precession is the effect of bodies in motion upon other bodies in motion -- or, more simply, a ripple effect, like when you throw a stone into a still pond and the waves emanating from it overlap.
While there are many such processional "waves" in the coming recession, one is the lack of integrity in the U.S. monetary system. The United States has defaulted on its financial promises many times in recent history. In 1934, we defaulted on domestic gold redemption. That year, it became illegal for U.S. citizens to own gold. Instead, the government required Americans to turn in their gold, and they were paid $20 in paper money for every ounce of gold they surrendered.
Once the gold was collected, the government raised the price of gold to $35 an ounce. Talk about a lack of integrity. And in 1968, the U.S. defaulted on silver redemption, taking U.S. dollars backed by silver out of circulation. Finally, in 1971, the U.S. defaulted on international gold redemption.
International Impact
Another reason for the coming recession is the subprime mess. And while issues related to the subprime fiasco may seem domestic, they actually have severe international consequences. The subprime mess seems to be a problem associated with lower-income people who can't afford their homes, yet it's really the tip of a very large international iceberg, and it'll affect all of us. Here's why.
In the Sept. 12, 2007, issue of Business Week, Kerry Capell asked the question, "Could any country be more exposed to the credit crunch than the U.S.?" The answer: "You bet, and that place is Britain."
Unlike many of its European neighbors, Britain shares many of America's financial traits. In the last few years, access to cheap credit in Britain has fueled a decade of economic growth, with home prices tripling in 10 years -- an even faster rise than in the United States. With cheap borrowed money, the English consumer has caused the British economy to boom; consumers are responsible for two-thirds of the British economy.
Today, Britain is more dependent upon financial services than we are. So what will happen to the world if both England and the United States go into a recession? The precessional effect is bound to be dire -- especially for working people.
Too Much Money
As strange as it may seem to the average person, the problem is not a shortage of money -- it's too much money. The world is choking on too many U.S. dollars.
Normally, when a currency gets into trouble as the dollar is now, all the country has to do is raise the interest rates on their bonds and things are fine again. But because of the subprime meltdown, the Federal Reserve can't simply raise or lower interest rates.
In simplified terms, the Fed must keep rates low in order to save the domestic economy. This causes the international economy to dump the dollar by not buying our bonds, which is one reason why the price of gold keeps going up -- it's the true international money. And the rise in its price (and in the price of oil) signals the loss of the purchasing power of the dollar; the world simply doesn't want any more dollars. This is a ripple effect from 1971, when the dollar came off the gold standard.
Less for More
The tragedy of this excess of money is that most of the world's workers have to work harder to earn less. This is because the currencies of the world are becoming less and less valuable. Even if workers get pay raises, the boost won't be able to keep pace with declines in the purchasing power of money, increases in expenses such as oil, decreases in the value of homes, declines in the value of stocks, and increases in taxes.
Just look at what's happened in the last decade. Ten years ago, gold was about $275 an ounce. Today, it's over $700. That means that, compared to gold, your income would've had to go up by 250 percent just to keep up with the loss in purchasing power of the dollar. Or, compared to oil -- which was about $10 a barrel 10 years ago and today is over $80 a barrel -- your income would've had to go up by 800 percent.
Sure, there are many people whose incomes have gone up way beyond 800 percent in the last 10 years. The problem is that most people's incomes haven't kept pace, and they're technically in a state of personal recession with no way out.
Throw Yourself a Lifeline
As the global economy continues to gyrate, you'll hear more and more people calling for the Federal Reserve to either lower or raise interest rates. The problem is that the Fed has less and less power to do much.
If it tries to save the domestic economy, the international economy will pound us. If the Fed tries to save the dollar internationally by raising interest rates, it'll kill the domestic economy.
Instead of looking to the Fed to save you, then, I recommend you save yourself by investing in real international money. One way to do so is by purchasing silver. Gold is expensive, but silver is still a bargain even for the little guy. When the recession comes, the ripple effect on your financial future will be immeasurable.
Robert Kiyosaki
Posted on October, 2007
Sunday, 11 November 2007
Beware the IDR Falling into Singapore's Hands
Former Malaysian prime minister Mahathir Mohamad was interviewed by Malaysia's fortnightly political tabloid Siasah on Aug 9. This is an extract from the interview published in the current issue of the tabloid.
SIASAH: The Iskandar Development Region (IDR) is a massive and expensive project that is said to be very beneficial especially to Johor in the long run. But various quarters - including you, Tengku Razaleigh, PAS members and international financial analysts based in Singapore - are sceptical about whether the project will run as smoothly as planned.
Tun Dr Mahathir: We can develop our territory anywhere we like. But the problem is Singapore's involvement in this project. Why must there be a special joint ministerial committee to decide on the development in Malaysia? Why must we depend so much on Singapore's participation to develop the IDR? As we know, Singapore is not a good neighbour, and even if it agrees to be involved in the IDR, Singaporeans will eventually buy houses or factories and reside here. Singapore reportedly has plans to increase its population to eight million to 10 million (sic), a large part of which will be imported from mainland China. As Singapore can only accommodate up to five million to six million, the rest of its population will probably be placed in the IDR. So if we're not careful, the IDR will eventually be filled with Singaporeans. Past experience has taught us that we lost Singapore because the Chinese population exceeded that of the Malays. And tomorrow, if the government allows Singapore Chinese to occupy the IDR (through business, employment and property purchase) to a larger extent than the Malays, the IDR would be dominated by Singapore Chinese because the Malays cannot afford to buy homes there. Malacca and Penang remain in Malaysia because the Chinese population can be offset by the large Malay population. But in Singapore, the Chinese make up more than 75 per cent of the population while the Malays make up a mere 15 per cent. The Chinese there are rich and control the economy. For this reason, we had to release Singapore because the Chinese were too numerous and controlled the island. And at that time, Lee Kuan Yew, who had initially agreed not to interfere in the political affairs of the peninsula, broke his promise by contesting in the 1964 general election in Bangsar, which led to the late Tunku (Abdul Rahman) becoming incensed and expelling Singapore. Today, we are trying to invite Singapore to enter Malaysia by participating actively in the IDR through various incentives and investment promotions. Eventually, the Johor Malays - who would initially refuse to sell their land - would be blinded by the highly lucrative offers for their properties and sell them to the Singapore Chinese for instant wealth. After that, where will the Malays reside? They will be driven away from the rapidly developing IDR. They won't be able to afford the costly property there and will be forced to live outside the IDR. The IDR will then be filled with Singapore Chinese and Malaysian Chinese who can afford it. What if their numbers exceed the Malay population? We will once again lose Malay territory to the Chinese, as had happened with Singapore previously. What about the Singapore Government's active involvement leading to the formation of the joint ministerial committee? Is this necessary? All this while, we had never sought anyone's assistance or advice to develop our country. We had developed Kuala Lumpur ourselves without anyone's aid. We never called on any foreign minister to advise us on how we should develop KL. We have the Economic Planning Unit (EPU) to plan and advise us on our development. The development of Putrajaya, Labuan, Langkawi and the whole country was the result of our hands and the expertise of our people. Why must we develop the IDR by seeking advice from Singapore ministers? They are just like us. We developed this whole country without the help of foreigners and without the advice of any foreign minister, including Singapore's. In fact, those Singapore ministers sitting on the ministerial committee can't even make decisions without the direction and consent of the island's most powerful man, Lee Kuan Yew.
-----------------------------------------
SIASAH: The Iskandar Development Region (IDR) is a massive and expensive project that is said to be very beneficial especially to Johor in the long run. But various quarters - including you, Tengku Razaleigh, PAS members and international financial analysts based in Singapore - are sceptical about whether the project will run as smoothly as planned.
Tun Dr Mahathir: We can develop our territory anywhere we like. But the problem is Singapore's involvement in this project. Why must there be a special joint ministerial committee to decide on the development in Malaysia? Why must we depend so much on Singapore's participation to develop the IDR? As we know, Singapore is not a good neighbour, and even if it agrees to be involved in the IDR, Singaporeans will eventually buy houses or factories and reside here. Singapore reportedly has plans to increase its population to eight million to 10 million (sic), a large part of which will be imported from mainland China. As Singapore can only accommodate up to five million to six million, the rest of its population will probably be placed in the IDR. So if we're not careful, the IDR will eventually be filled with Singaporeans. Past experience has taught us that we lost Singapore because the Chinese population exceeded that of the Malays. And tomorrow, if the government allows Singapore Chinese to occupy the IDR (through business, employment and property purchase) to a larger extent than the Malays, the IDR would be dominated by Singapore Chinese because the Malays cannot afford to buy homes there. Malacca and Penang remain in Malaysia because the Chinese population can be offset by the large Malay population. But in Singapore, the Chinese make up more than 75 per cent of the population while the Malays make up a mere 15 per cent. The Chinese there are rich and control the economy. For this reason, we had to release Singapore because the Chinese were too numerous and controlled the island. And at that time, Lee Kuan Yew, who had initially agreed not to interfere in the political affairs of the peninsula, broke his promise by contesting in the 1964 general election in Bangsar, which led to the late Tunku (Abdul Rahman) becoming incensed and expelling Singapore. Today, we are trying to invite Singapore to enter Malaysia by participating actively in the IDR through various incentives and investment promotions. Eventually, the Johor Malays - who would initially refuse to sell their land - would be blinded by the highly lucrative offers for their properties and sell them to the Singapore Chinese for instant wealth. After that, where will the Malays reside? They will be driven away from the rapidly developing IDR. They won't be able to afford the costly property there and will be forced to live outside the IDR. The IDR will then be filled with Singapore Chinese and Malaysian Chinese who can afford it. What if their numbers exceed the Malay population? We will once again lose Malay territory to the Chinese, as had happened with Singapore previously. What about the Singapore Government's active involvement leading to the formation of the joint ministerial committee? Is this necessary? All this while, we had never sought anyone's assistance or advice to develop our country. We had developed Kuala Lumpur ourselves without anyone's aid. We never called on any foreign minister to advise us on how we should develop KL. We have the Economic Planning Unit (EPU) to plan and advise us on our development. The development of Putrajaya, Labuan, Langkawi and the whole country was the result of our hands and the expertise of our people. Why must we develop the IDR by seeking advice from Singapore ministers? They are just like us. We developed this whole country without the help of foreigners and without the advice of any foreign minister, including Singapore's. In fact, those Singapore ministers sitting on the ministerial committee can't even make decisions without the direction and consent of the island's most powerful man, Lee Kuan Yew.
-----------------------------------------
Wednesday, 24 October 2007
10 Golden Rules From Boon
#1: Risk awareness; always place a Stop before you enter.
#2: Only trade when you knew you can win.
#3: Live life; love your friends and family.
#4: It gives you good money when you do it right, but it contributes virtually nothing to society. Contribute to society.
#5: Treat people with respect. Be remembered for your kindness, integrity, love, and care for the others. Not your money!
#6: To live you need oxygen and water. To succeed you need passion and perseverance.
#7: Winners collect money lost by those who are driven by greed and stupidity. Be a winner.
#8: Profit is only yours when you take it.
#9: Pick out associates whose behavior is better than yours. Stay away from jerks.
#10: If you are a jerk when you are broke, you are still a jerk when you are rich.
#2: Only trade when you knew you can win.
#3: Live life; love your friends and family.
#4: It gives you good money when you do it right, but it contributes virtually nothing to society. Contribute to society.
#5: Treat people with respect. Be remembered for your kindness, integrity, love, and care for the others. Not your money!
#6: To live you need oxygen and water. To succeed you need passion and perseverance.
#7: Winners collect money lost by those who are driven by greed and stupidity. Be a winner.
#8: Profit is only yours when you take it.
#9: Pick out associates whose behavior is better than yours. Stay away from jerks.
#10: If you are a jerk when you are broke, you are still a jerk when you are rich.
Monday, 22 October 2007
Today Is Black Monday???
Brutal selloff on Wall Street
Dow down almost 367 points, its third worst day of the year, on fears about credit and housing sector, earnings, record-high oil prices, slide in dollar, what the Fed will do next.
By Alexandra Twin, CNNMoney.com senior writer
October 19 2007: 6:42 PM EDT
NEW YORK (CNNMoney.com) -- Stocks tumbled Friday as record-high oil prices, more problems in the bank sector and slower corporate earnings growth revived worries about an economic slowdown.
Dow down almost 367 points, its third worst day of the year, on fears about credit and housing sector, earnings, record-high oil prices, slide in dollar, what the Fed will do next.
By Alexandra Twin, CNNMoney.com senior writer
October 19 2007: 6:42 PM EDT
NEW YORK (CNNMoney.com) -- Stocks tumbled Friday as record-high oil prices, more problems in the bank sector and slower corporate earnings growth revived worries about an economic slowdown.
Thursday, 11 October 2007
Russian Rocket Launches First Malaysian Into Space
BAIKONUR (Kazakhstan): At exactly 9.22pm (Malaysian time), the Soyuz -FG rocket launcher blasted off from the Baikonur Cosmodrome. Russian Soyuz TMA-11 space vehicle carrying Russian cosmonaut Yuri Malenchenko, U.S. astronaut Peggy Whitson and Malaysian astronaut Sheikh Muszaphar Shukor disappears into the evening sky as it travels to the International Space Station (ISS) from the Baikonur cosmodrome in Kazakhstan October 10, 2007. REUTERS/Denis Sinyakov
We have lift-off!
In less than nine minutes, Dr Sheikh Muszaphar Shukor created history by becoming the first Malaysian in space.
Dr Sheikh Muszaphar Shukor is first in line to bring the Jalur Gemilang shoulder patch into space.
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