Worst of Crisis Ahead

[Merl Haggard]

Worst of Crisis Ahead, More Banks May Hit Trouble ~ IMF.



The worst of the financial crisis may still lie ahead and more major financial institutions may face trouble in coming months, IMF director general Dominique Strauss-Kahn said on Wednesday.

The crisis risks weighing on the world economy, he said, though both developing and developed countries were showing signs of resilience, Strauss-Kahn told reporters after a meeting with Gulf Arab finance ministers and central bank governors.

"It is a very serious financial crisis," he said. "The consequences for some financial institutions are still in front of us. We have to expect that there may be in the coming weeks and coming months other financial institutions with some problems," he said.

Strauss-Kahn spoke the day after U.S. authorities engineered an $85 billion rescue American International Group AMERICAN INTL GROUP INC, staving off bankruptcy for the insurance giant and bringing a measure of calm to shell-shocked global markets.

"What we are experiencing these days is an increase in the downside risk and uncertainty," Strauss-Kahn said.

The AIG bailout came just two days after U.S. authorities refused to rescue investment bank Lehman Brothers LEHMAN BROTHERS HLDGS INC.

The Fed stepped in amid worries that a collapse of AIG could cause far-reaching damage to the global financial system, although some market players argued that the government's move brings just a short-term respite and could do long-term harm.

Copyright 2008 Reuters.

 

[hungary fighter]

here goes our year end bonus.....just when the past 2 years the economy is better.......now this......:(

 

[kuntakinte]

If you translate CRISIS into Chinese, Wei Ji. It also means Opportunities (Ji) in any Dangers(Wei). Which is, there are opportunities in times of CRISIS.

The thing is, are you able to sniff them ??

I know I do and I am waiting............

 

[Merl Haggard]

here goes our year end bonus.....just when the past 2 years the economy is better.......now this......:(

AIG Rescue Fails to Calm Global Financial Markets


The $85 billion government rescue of American International Group failed to calm global markets as the uncertain fate of other financial institutions continued to unsettle investors around the world.

As the Wall Street financial crisis entered its third day, the US stock market opened sharply lower, Europe was slightly higher and Asia ended mixed.

The dollar was lower, while oil prices rebounded.

Around the time the AIG deal with the U.S. authorities was announced Tuesday night, CNBC reported that Morgan Stanley MORGAN STANLEY, one of the two remaining Wall Street investment banks, was considering finding a merger partner to avoid the fate of Bear Stearns and Lehman Brothers

Also late Tuesday, British bank Barclays agreed to buy parts of Lehman for $1.75 billion.

Meanwhile, Britains's biggest mortgage lender HBOS and Lloyds contemplated a merger which would reshape British banking.

The week has already seen the disappearance of two major Wall Street names, with Merrill Lynch MERRILL LYNCH throwing itself into the arms of Bank of America BANK OF AMERICA, and Lehman Brothers filing for bankruptcy.

AIG's bailout brings to about $900 billion the total of U.S. rescue efforts to stabilize the financial system and housing market.

 

[Merl Haggard]

Dow Jones is down by 270 pts! Looks like we'll have to go through a depression.

How can Temasek's NOL go ahead to bid for HapLloyd Line for 5bln Dollars in such time of great uncertainty?

 

[Manchu]

Dow Jones is down by 270 pts! Looks we'll go through a depression.

How can Temasek's NOL go ahead to buy HapLloyd Line for 5bln Dollars in such time of great uncertainty?

All these are paid for by the blood and sweat of peasants.

Increase GST, ERP, MRT/Bus fares increases.......and surely more drastic surprises for the peasants in the coming days .....so that there is enough funds to finance the HapLloyed purchase !

 

[chinkangkor]

Dow Jones is down by more than 300 pts. Tomorrow STI will drop like shits.

 

[yellow_people]

Dow Jones is down by more than 300 pts. Tomorrow STI will drop like shits.

i hope so too. In fact I hope LKY dies tomorrow and there is political turmoil in Singapore very soon. Everything, the reserve, cpf, the local banks, savings and hdb "valuation" be wiped out. I would love to see the Chinkee Sinkee expression before he runs back to China with his tail between his legs.

Now we can talk about true nation building. Good riddance motherfuckers.

 

[spotter542]

ST Index nosedive today. Tomorrow will not be better either.
Think will hit below the 2300 mark by Friday

 

[dysentry]

Peter Lim was right when he said the next recession will be very severe...

 

[BlueCat]

even China is not spared.
they also have exposure to Lehman Brothers.
what about others,how much have they being exposed ?

BEIJING - A midsize Chinese bank said Wednesday it holds US$70 million in Lehman Brothers' senior debt and subordinated bonds but analysts say China's total exposure to the failed U.S. investment house should be limited.
China Merchants Bank Ltd. was the first Chinese bank to disclose its holdings of Lehman debt. China's third-largest government-owned commercial bank, Bank of China Ltd., was listed among Lehman's creditors, with US$50 million in debt.
In a written statement, China Merchants said it would make provisions for losses and carry out a risk assessment. It said the bank holds US$60 million in Lehman senior debt and US$10 million in subordinated debt.
Chinese banks' exposure to Lehman is unclear but probably small, Global Insight economist Adam Breen said in a report.
"It is highly unlikely that exposure to Lehman Brothers represents a large threat to the banking system," Breen said.
On Tuesday, China's Hua An Fund Management Co., warned of possible heavy losses due to Lehman. Hua An, based in Shanghai, said its International Balanced Fund is invested in notes provided by Lehman that are linked to stocks, bonds and other assets.

 

[NobleEagle]

Its gonna be much more worst than the economy crisis in 1997

 

[downgrader]

i certainly hope so

 

[hungary fighter]

itz the great depression again.....

 

[hughgrant]

i certainly hope so

dun lidat leh, a lot of pple got $ in shares :(

 

[gun6969]

only good thing is, property prices will hit rock bottom in six months to a year

 

[sherrry]

only good thing is, property prices will hit rock bottom in six months to a year

If what you speculate is true, I believe many new couples & HDB owners (who bought their units at 500k-700k) would be jumping from their very high-rise units.

 

[yellow_people]

even China is not spared.

Hang on a second. I was reading news reports, articles and arse farts back in the old sammyboy forum in delphi since 2005 about how China is going to "own" everything including the usa and how their economy has decoupled from the usa. How China is going to do this and do that.

Why is it now that the Chinks in China aren't spared when a bank in USA sneezes?

Rampant counterfeiting of USA and european goods and being a sweatshop for US and european customers does not look like a winning receipe of an economic powerhouse.

 

[Lentor]

only good thing is, property prices will hit rock bottom in six months to a year

good,time to cash in on those landed properties whose owners got their hands burnt when the prices dropped to rock bottom!
STI will most likely to sink to support level of 1600-1700.

 

[kuntakinte]

Lest you are not aware, Ho Jinx is measured by how much money she losses in an investment. Her measurement is of reverse index, meaning, the more she losses, the more she will get her bonuses and promotions.

Who dare to question her ? Especially, the cronies are in unison with LKY and even Dhana-bo-lan also praised her for all the losses she accumulated !!

Dow Jones is down by 270 pts! Looks like we'll have to go through a depression.

How can Temasek's NOL go ahead to bid for HapLloyd Line for 5bln Dollars in such time of great uncertainty?