How long do you think this turmoil goona last? Its gonna effect almost every business not just financial sector and i have already started to feel the pinch in my job. My IT company fired 200 people last week.
psh... for a min i thot this was afro til i read the signature..heh.
any way, there was a segment int he paper about how everyone else is going to be affected, no doubt other sectors but also the restaurant busienss,bars, even cart food/street vendors will suffer. a waiter put it the best way "we're joined at the hip, when they're getting bonuses, so are we." Ithink its oNly gona get worse
It is going to affect every sector, when there is less demand and money around everything gets affected. People tend to spend less during these times, the companies tend to spend less as well.
It is going to get much worse before it gets better.
In the last few weeks the US govt has rescued Freddie Mac, Fannie May and now AIG while Lehman Brothers has gone under. In UK Northern Rock was rescued and today HBOS, one of the biggest bank and certainly the biggest mortgage lender is in talk with Lloyds for a merger as its shares have more than halved onver the last few days. No way can the govt let HBOS go under, it would screw the whole financial system in UK and abroad.
All the measures have failed to convince the markets and the carnage continues. FTSE closed below 5000 at 4912. Dow is currently down another 320 points at 10739. Nasty, very nasty.
Dow closed down 449 points at 10609. Doesnt look like any capitulation in sight as selling continues.** About $4.4 trillion of market value has been erased from global stocks this week with no end in sight. The consequences of this could be really serious as bank lending has siezed up after the AIG takeover.
**
In another sign to try and stabilise the markets the UK regulatory authorities have banned shorting shares of Financial institutions. This would stop the shameless and unwarranted run earlier this week on HBOS. A perfectly strong and vibrant bank was brought to its knees by a few greedy speculators.
In another sign to try and stabilise the markets the UK regulatory authorities have banned shorting shares of Financial institutions. This would stop the shameless and unwarranted run earlier this week on HBOS. A perfectly strong and vibrant bank was brought to its knees by a few greedy speculators.
Simply recycling the trash...........bad management can only be replaced by Bankruptcies.........this will cause more inflation though.......all that extra money being created out of thin air by central banks...........we all end up paying for it!
Right now they are just mopping up after the mortgage and sub-prime melt-down. Creditcard mess is likely gonna hit next.
SOX (Sarbanes-Oxley) is supposed to see how a company manages risks. Clearly failed here. When companies grow too big, its difficult for any mai-ka-laal auditor to figure out exactly how many different ways the company is exposed. Plus issues facing these companies originate from very complex series of investment decisions made by them. Not easy to pin-point. We are talking more Risk audit than financial audit.
By the way, strong rumors are that WaMu is next - looking for a buyer.
The fact remains that SOX was originally designed to make risk more visible… it wasn’t designed to shield investors from the consequences of risk. The current crisis is symptomatic of business failure due to too much risk and moreover… poorly assessed risk.
From my own experience with SOX, I know that businesses get so taken with checking all the compliance boxes in section 404 that they ignore and often overlook other dimensions of risk.
So we know this is going to affect everyone..but how? Specifically how is the average consumer (like me) going to fare esp wrt to bank accounts and safety deposit boxes??
In another sign to try and stabilise the markets the UK regulatory authorities have banned shorting shares of Financial institutions. This would stop the shameless and unwarranted run earlier this week on HBOS. A perfectly strong and vibrant bank was brought to its knees by a few greedy speculators.
eb, these are greedy institutional investing speculators, they weild way too much power now.
The fact remains that SOX was originally designed to make risk more visible… it wasn’t designed to shield investors from the consequences of risk. The current crisis is symptomatic of business failure due to too much risk and moreover… poorly assessed risk.
From my own experience with SOX, I know that businesses get so taken with checking all the compliance boxes in section 404 that they ignore and often overlook other dimensions of risk.
yaar, and the reason to make risk more visible was to make sure that investors know about the level of risk and take appropriate steps. Question now is was the risk appropriately identified? I mean u or I may have been fooled and did not read the filings in depth, but ppl like fund managers would not have.
I believe that the level/scope/magnitude of risk was fraudently not properly noted and
After two days of strong rally at the end of last week the shares fell heavily today and the Dow closed 373 points down at 11016. The market does not know what to make of this rescue package. On the one hand the market has fallen today because the market thinks that the package might not be enough to avoid a recession, on the other oil jumped up $6.6 on the day on the hope that the economy will pick up due to the financial package. Which one is it?
Which one is it?