Auto Bailout

Looks like the Federal Goverment is bent in helping the big three (now becoming the "small three"). I think the goverment can't let these companies go bankrupt as this will definitely affect the devastated US economy. There are some people who think that these three should be saved. They said that if the US goverment spend billions of dollars in Iraq and Aghanistan, helping other countries, why not spend money in helping its own people. By not helping these big three will result in unemployment. So why not helped them to avoid adding percentage in the rising unemployment rate?
Another problem in this bailout is the stand of the Unionist. They don't want pay cut to be implemented now to be realligned with Japan job pay. I think they want it only after 2010.

Let's pray that they find a common ground to work it out and come up with win-win solution to the problem.

On the other side, stocks are up today. I have MEG shares which I will be selling even if I will only earn a few bucks. I am still on my plan of buying shares come February 2009.

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Pacquiao Fight

National hero done it again!!!
Pacquiao won the match with the golden boy. It's a mismatch from the very beginning. They said Dela Hoya is too big for "Pambansang Kamao" but Pacman proved them wrong, mismatch is the other way around.
Pacman definitely affects all components of Filipino life. From individual to national politics. According to PNP, there are no crime incidents happenned during the fight. Maybe all bad elements are glued on the TV. That's a good news!
The bad news? Politician put Pacman on top of their duties. Let's see... Atienza... congressmen... tsk tsk tsk.

Back to economy: What is the effect of this fight to our economy? Let's pray Pacquiao spend his millions in the Philippines not in other countries. But that his money anyway.

Recession History

1929 - 1933
- Great depression.
- Unemployment rate is 25%.
- GDP contracted by 28%.
- Banking system collapsed. absence of bank
deposit insurance at the time caused catastrophic
erosion to household wealth and consumption.

1973 - 1975
- Lasted a longer-than-average 16 months with 9% unemployment rate.
- Cause by surge in oil prices.

1981 - 1982
- Lasted a longer-than-average 16 months with 10.6% unemployment rate.
- Cause by high interest rates due to the desire of Fed chairman
Paul Volcker to drive inflation.

1990 - 1991
- Mild recession.

2001
- Mild recession.

2007
- According to National Bureau of Economic Research (NBER), US recession started December of 2007. It is the time when significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income and other indicators.
- The economy has shed 10.3 million jobs.


Average time of recession - 10.4 months
End of recession - Middle of 2009

Landslide and Stocks

I've been to bicol (Camarines Norte) last week and it is raining like hell! Landslide and damaged detours are everywhere! There is a landslide near our home that covered the whole road. It took 2 dump trucks and a bulldozer to clear the road after 4 days! Boy, the goverment of Camarines Norte would be known for their being too slow to respond on such events! But with good luck, we came back to Manila in one piece :)

4 days without information of what's going on in financial market (what a rest!). I kept thinking how my stocks are doing and a whole market as well. Not surprisingly, it is still the same. With news about bailout, credit crunch philippine politics - all sucks!

Stocks these days are going landslide, but as Buffet said, "It's time to be greedy when others are fearful".