It’s amazing; it’s crazy but it’s true. The U.S Congress failed to pass the $700 billion bailout package that is suppose to lift the US economy and sweep up all the bad debts in the US credit market.
My jaws literally dropped on the floor when I heard this. I mean I know the bailout is unpopular and the U.S election is just in 5 weeks, but how in the world can they reject this! Is there another plan out there in the U.S that I haven’t heard of yet? As Wall Street had a historic sell-off of 777 points in one day, including a decline of 400 points in 10 minutes, the answer is a big ‘NO’.
The historic carnage on Wall Street hit everyone as stock markets in Asia fell sharply after the news. The stunning news left almost everyone speechless and in shock. If U.S lawmakers don’t want to do this, then they must come up with another plan…fast!
Anyone out there who is playing the stock market, here’s a piece of advice: Sell, Sell, Sell!
2 comments:
You've got to be kidding to advise people to sell their shares out of panic. Granted, those who play contra have better get their acts together during these uncertain times, but those who invest in Singapore blue chips should stay calm if they have the holding power.
Asia had survived major economic crises in the past as well as the impact of the bird flu scare a couple of years back. So I'm sure it will weather this storm also, unless you're talking about total collapse of the world's economic structure and financial system, in which case, all our savings will also go down the drain anyway.
I don't blame the US Congress for not backing the bailout plan, given that the taxpayers are extremely unhappy over this decision by the US government, and are pressurizing their congress men to oppose the bill.
The failure is due to poor regulation of banking practices which led to this current mess, and the people responsible should be brought to trial, political and financial. Bailing the financial institutions out will only serve to encourage them to continue their unethical and irresponsible practices, and provide only temporary relieve to the ailing banking industries.
There are many reasons for the current mess, but blame can and must come later. First you must get rid of the unlaying problem to the market, and that is the bad debt. No one likes bailing out financial institutions but Japan is a prime example that it works! Asia may survive but Singapore is more tied into the U.S market than most other Asian countries. So yes, unless the U.S Congress pass the bailout, I say sell.
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