Financial Meltdown
Hi All
It is common knowledge that some of the recent developments in some of the financial markets in the world have been unusual and with dramatic impact on the whole world.I would like to share a few thoughts regarding the same and seek inputs from everyone in the community as we have a very knowledged, experienced, diverse group of members in the community and it would be interesting to see some views bounced off.
Freddie Mac and Fannie Mae - Fed Bail out!
Bear & Sterns - Gone!
Lehman Brothers - Gone!
AIG - Fed bail Out!
Goldman Sachs - Not an Investment Bank Anymore!
Washington Mutual - Gone!
It is unbelievable that these pillars of Investment Banking and finance - The Ivy league of Money markets have gone bust! The US Fed bailed out a couple of institutions to save the market from totally crashing and have decided that they cant do much about the rest! Investment bankers - the rischest and most envied of professionals are becoming unemploed in hordes and many are going on 2 year vacations to the East or shifting career lines altogether!
Amidst all this chaos , the United States is conducting a Presidential election and are on the verge of choosing their first black president( some of our democratic friends in this group might disagree though!) on whose shoulders would rest the responsibility of stopping the US economy from going into a depression from this time of recession and work towards bringing the country's economy back on the road to progression in addition to continuing the war on terrorism globally , hoping to win , and fighting against rising fuel prices and still provide its people with the American way of life! On the other hand Donald Trump - the world's most smartest, richest and wisest real estate investor is now on an investment spree in spite of the subprime crisis and says this is the best time ever for real estate!!!
The winners seem to be IT professionals from India in the US who have traditionally been money savers and wise investors. Real estate in the US is dirt cheap now and Americans are selling all property like candy as they cannot repay their loaded mortgages and our IT professionals are on a buying spree , captilasing on the situation and consolidating in the market . Many have bought properties in upmarket locations in the US at throw away prices!
Europe on the other hand saw Banco Santander and RBS become larger banks by acquiring large banks. HSBC, SCB, Lloyds, Natwest,BNP, Deutsche and a whole lot of others seem to be holding ground in spite of the US meltdown.
Bank Of China and Sumitomo Japan and other large banks in Japan and China are looking at buying out US Banks and capture the Western Markets! The world is flooded with Asian goods or goods manufactured by global companies in Asia. Asia is a hot location for investment in all sectors of industry - manufacturing, services, finance, agro, energy, chemical, technology, heavy industries - you name it and everyhthing' s looking up in Asia . It is also a cultural melting pot with many goodies to offer for anyone who is interested in seeking out whats available!
The markets in the Middle East are also going through a time of rapid change. Oil prices are the highest ever in the world now and there are no signs of any relent in the near future.
Discussion Points:
1:Is this the rise of the Asian Dragons over the Western Raging Bulls! Is this an indication of a financial powershift from the West to the East? Is this a beginning for larger changes in the way the world does business. Is this a war? is this an act of terrorism? Is this a calamity? Is this cyclical?
2:How are our Indian Banks Positioned on this? I have been told that ICICI Bank is now highly vulnerable as they had made huge investments in the Investment Banks and have lost massively in the meltdown. I am also aware of many companies that were backed by these banks in India have now filed for bankruptcy! Any information on any other Indian banks facing substantial exposure?Any reason for panic yet in India?
3:How is the Nifty taking this meltdown? What are the scrips seeing an upswing? Which are the sectors going down?. What are the promising sectors? What are the defenite no-nos? The Hangseng , CAC, Dow Jones , The FTSE(spealt Footsie!), SIMEX, Nifty have all seen tremendoes fluctuations in the past month or so. Any idea on the direction it would take from here?
Hope to see some comments soon..
It is common knowledge that some of the recent developments in some of the financial markets in the world have been unusual and with dramatic impact on the whole world.I would like to share a few thoughts regarding the same and seek inputs from everyone in the community as we have a very knowledged, experienced, diverse group of members in the community and it would be interesting to see some views bounced off.
Freddie Mac and Fannie Mae - Fed Bail out!
Bear & Sterns - Gone!
Lehman Brothers - Gone!
AIG - Fed bail Out!
Goldman Sachs - Not an Investment Bank Anymore!
Washington Mutual - Gone!
It is unbelievable that these pillars of Investment Banking and finance - The Ivy league of Money markets have gone bust! The US Fed bailed out a couple of institutions to save the market from totally crashing and have decided that they cant do much about the rest! Investment bankers - the rischest and most envied of professionals are becoming unemploed in hordes and many are going on 2 year vacations to the East or shifting career lines altogether!
Amidst all this chaos , the United States is conducting a Presidential election and are on the verge of choosing their first black president( some of our democratic friends in this group might disagree though!) on whose shoulders would rest the responsibility of stopping the US economy from going into a depression from this time of recession and work towards bringing the country's economy back on the road to progression in addition to continuing the war on terrorism globally , hoping to win , and fighting against rising fuel prices and still provide its people with the American way of life! On the other hand Donald Trump - the world's most smartest, richest and wisest real estate investor is now on an investment spree in spite of the subprime crisis and says this is the best time ever for real estate!!!
The winners seem to be IT professionals from India in the US who have traditionally been money savers and wise investors. Real estate in the US is dirt cheap now and Americans are selling all property like candy as they cannot repay their loaded mortgages and our IT professionals are on a buying spree , captilasing on the situation and consolidating in the market . Many have bought properties in upmarket locations in the US at throw away prices!
Europe on the other hand saw Banco Santander and RBS become larger banks by acquiring large banks. HSBC, SCB, Lloyds, Natwest,BNP, Deutsche and a whole lot of others seem to be holding ground in spite of the US meltdown.
Bank Of China and Sumitomo Japan and other large banks in Japan and China are looking at buying out US Banks and capture the Western Markets! The world is flooded with Asian goods or goods manufactured by global companies in Asia. Asia is a hot location for investment in all sectors of industry - manufacturing, services, finance, agro, energy, chemical, technology, heavy industries - you name it and everyhthing' s looking up in Asia . It is also a cultural melting pot with many goodies to offer for anyone who is interested in seeking out whats available!
The markets in the Middle East are also going through a time of rapid change. Oil prices are the highest ever in the world now and there are no signs of any relent in the near future.
Discussion Points:
1:Is this the rise of the Asian Dragons over the Western Raging Bulls! Is this an indication of a financial powershift from the West to the East? Is this a beginning for larger changes in the way the world does business. Is this a war? is this an act of terrorism? Is this a calamity? Is this cyclical?
2:How are our Indian Banks Positioned on this? I have been told that ICICI Bank is now highly vulnerable as they had made huge investments in the Investment Banks and have lost massively in the meltdown. I am also aware of many companies that were backed by these banks in India have now filed for bankruptcy! Any information on any other Indian banks facing substantial exposure?Any reason for panic yet in India?
3:How is the Nifty taking this meltdown? What are the scrips seeing an upswing? Which are the sectors going down?. What are the promising sectors? What are the defenite no-nos? The Hangseng , CAC, Dow Jones , The FTSE(spealt Footsie!), SIMEX, Nifty have all seen tremendoes fluctuations in the past month or so. Any idea on the direction it would take from here?
Hope to see some comments soon..
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