Of Financial Market
I bring to you a piece of news that you might already be aware of, yet choose to pay a little attention to. This week alone, news on this issue from the US has impacted shares locally and worldwide. What's the big deal? A big deal of USD700billion rescue plan from the US Governments is being placed through the Senate and the House of Representatives for approval
This rescue package, USD700billion, is some SGD1Trillion.. 1trillion, 1trillion, yes yes.. let it sink it. So who, where and what is requiring 1trillion Singapore dollars worth of rescue?
"Hero" : US Government
"Victim" : US Banks and Financial Institutes on Wall Street
Ironic isn't it, that a bank, a traditional source where one could borrow money legally or put money in as deposits or investments is now requiring such a big rescue plan. In the states, this rescue plan is also termed as a "bailout". I'm not sure what your idea of a "bailout" is.. but to me, think of monopoly "get out of jail for free" card and i guess its about there.
Basically, banks are laden with huge debts, both from sub-prime mortages and other forms of bad debts. So while the bankers are rolling in their BMWs and Ferraris, slipping fine wine and indulging in fine dining, its all bad now and the luxurious lifestyle are in threat..
Lehman Brothers in the US has declared bankruptcy, while others are either being rescued or bought over by other companies.
So it all sounds pretty, government steps in, rescues the banks and financial institutes and thus saves the economy from a meltdown. Everyone keeps their jobs and the world is gay once again. Everyone associated with the banks keep their jobs, people bring home salaries, continue to spend and businesses can sustain once again.
Not. The men on the streets are not convinced that the scumbags on wall street are worth the rescue, they made mistakes, profited from mistakes and now are on the verge of paying for it, till the government steps in. The rich gets protected to continue to be rich they say. This massive USD700 billion is coming from taxpayers money, taxpayers money that could have be used better elsewhere.
1 billion = 1,000,000,000
7 billion = 7,000,000,000
That's USD19,178,082 a day worth of rescue dollars. USD19mil a day. Wow. WOW. Taxpayer money. Rescue Plan Dollars.
Just days ago, the house of representatives voted against the USD700billion rescue by 228 votes to 205 votes. 13 votes made the difference and they should have another go at it once the revised bill gets past the senate.
What's in the revised bill? That's another headline for another day
This rescue package, USD700billion, is some SGD1Trillion.. 1trillion, 1trillion, yes yes.. let it sink it. So who, where and what is requiring 1trillion Singapore dollars worth of rescue?
"Hero" : US Government
"Victim" : US Banks and Financial Institutes on Wall Street
Ironic isn't it, that a bank, a traditional source where one could borrow money legally or put money in as deposits or investments is now requiring such a big rescue plan. In the states, this rescue plan is also termed as a "bailout". I'm not sure what your idea of a "bailout" is.. but to me, think of monopoly "get out of jail for free" card and i guess its about there.
Basically, banks are laden with huge debts, both from sub-prime mortages and other forms of bad debts. So while the bankers are rolling in their BMWs and Ferraris, slipping fine wine and indulging in fine dining, its all bad now and the luxurious lifestyle are in threat..
Lehman Brothers in the US has declared bankruptcy, while others are either being rescued or bought over by other companies.
So it all sounds pretty, government steps in, rescues the banks and financial institutes and thus saves the economy from a meltdown. Everyone keeps their jobs and the world is gay once again. Everyone associated with the banks keep their jobs, people bring home salaries, continue to spend and businesses can sustain once again.
Not. The men on the streets are not convinced that the scumbags on wall street are worth the rescue, they made mistakes, profited from mistakes and now are on the verge of paying for it, till the government steps in. The rich gets protected to continue to be rich they say. This massive USD700 billion is coming from taxpayers money, taxpayers money that could have be used better elsewhere.
1 billion = 1,000,000,000
7 billion = 7,000,000,000
That's USD19,178,082 a day worth of rescue dollars. USD19mil a day. Wow. WOW. Taxpayer money. Rescue Plan Dollars.
Just days ago, the house of representatives voted against the USD700billion rescue by 228 votes to 205 votes. 13 votes made the difference and they should have another go at it once the revised bill gets past the senate.
What's in the revised bill? That's another headline for another day
Labels: world
posted by klayhead at 7:00 am
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