Barack Obama's Inauguration

I watched the inauguration of the elected US president this morning (1AM). It's amazing to see so many people around the world went to capital to take part in this historic moment in American presidency. Obama comes from the minority group (African American) and rise to where he is now through hardwork and some luck. He graduated in Harvard as magna cum laude. He is intelligent, smart and charismatic politician.
Former presidents also attended the event. These presidents, although have differences with each other, went to the event as american. You can see them as they approach each other like friends (you don't see that here in our country).
The inaugural speech, though full of promises, did not affect the plunging market. Investor still in "watch and see" attitude. Stock market still in dismal trading, banking sector in Europe is in shamble (especially, UK banks), bailout funds are not working (yet) as bank still not lending money. Most businesses hopes that Obama will continue pushing federal money to the market (buying bad loans, infusing capital to ailing businesses, etc). Most of them think that this what Obama would do as he has no choice but to "bite the nail".
I've checked PSE as I wanted to buy some MEG stocks. As of today, PSEi dipped a few points. I tried to buy share at around 0.62/share but unfortunately, the price stayed at 0.63/share. Maybe I will try again tomorrow.

www.mytextmates.com

I put up a new site which have the services below:

1. Phone number database for SIM backup. All you need to do is signup and login. The website has screen which you can use to enter phone numbers once you already logged in.

2. Text mates corner where people can post messages and their mobile numbers. You don't need to login to post message. So, for those seeking new friend, you may visit the site.

Thank you,
http://www.mytextmates.com/
Philippines

Middle East Conflict

I am new in stock market. I read that there are some events that affect stock prices. Is the current conflict will affect the stock market?
According to one site I visited, oil now priced at 47 USD per barrel due to the middle east conflict and Russia tightening its oil production.
Would this conflict affect Philippine stock market prices? I don't know, but let us pray that the conflict end and local market will not be affected.

As of today, stock index is up by 5.4% due to bargain hunting. Blue chips are down of about 48% which I think is a good investment if you are going long.

How long would the crisis last? Financial managers predict until 3rd quarter of this year others think that it would be a long financial crisis especially that the congress think that the 700 billion bailout is not working (so far). Retrenchment of employees are continuous which would definitely affect the consumer spending.

Here in the Philippines, life goes on. People felt the whipped of the financial crisis but we always survive. Let us just tightened our belt a little more.

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http://www.mytextmates.com/

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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http://www.mytextmates.com/

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".