Sunday, May 11, 2008

Financial Crisis - August 2007

Why the share market brought a lot of people became poor? Because the investment into share market is not determined by how much your can gain in certain period. The winner always knew to maintain the gain before the market turn into crisis.
Every time if your can escape from the crisis. You investment has been sustain. Second step is how to planning your strategy of investment in the coming period.
Starting from 27 July 2007 until today, the world share market fluctuation heavily. I believed the analyst now very busy on studying the support level. Is that so important?
In my point of view, that is wasting time. Because the lower index registered only "God" will know. Human being like us should concentrate on how many funds we can accumulate in this period and plans for step buying.
A lot of people say that this crisis difference from year 1997. In my view, there is not difference. Because it similar starting from “credit crunch” and also concern the money. The essential hazard is gritty/hungry on funds/money.
In year 1997, currencies from ASEAN country impact on depreciation of value. Final result bring all corporate overnight must carry the heavy loan. Now, sub-prime housing mortgage also brings the Finance Institution must carry the heavy non-performing loan. Ultimate result for both is Finance Companies must registered higher bad debt.The trillion dollars will eliminate in this crisis.
In USA and Euro finance market, the intelligence people well know the well packaging the finance product and sell it for few times. It likes a music chair game. Whoever is stand up without chair to sit, he/she will be forfeited by market.Finance people carry a task and pressure to have faster turnover and higher profit because their bonus is depend on how much you can help finance company achieved a higher turnover. Hence, the beautiful packaging was imposed on bad product/poison. They also resell the product to various spot markets and derivative market. To identify thier atittude is correct, they further claimed on authority: -" In the free trading market, control is evil/ghosts."
The above activities brings the world central bank must inject the funds into the market to help them. They also pull FED to reduce the rate to feed them.Would it bring any stabilise the market? In my view, it is impossible.
Because it only helps rich people collect the funds and run. The world central should go back to basic and inject the funds to buy more food for poor people and well establish education on finance environment maybe could help world stabilise. Today, rich people creative the dirty game. But free market help us to eliminate the dirty game by crisis. World central bank should continue inject the funds to feed the basic needs of people(food and water) instead of support the need(money) of rich man. This basic support to the ground is to avoid the conflict and war. Finally, the crisis will be automatic eliminate by fairness and peace of living.
There is dangerous if FED or central bank continues support gritty people only, or only care of certain people bonus. We can forsee the inflation should not easy to control, eventually all of us died together.
Please, please FED and central bank think twice before the decision make. Thanks
Write by Bkeong on 11/5/2008.



No comments: