Recession may last up to 5 years

reyes SG

http://www.timesonline.co.uk/tol/news/uk/article5989163.ece

For those who still believe we are ending the crisis, can probably listen to wat george soros has to say.

moreover the toxic asset buyback plan by Tim G. will not start probably until sept/Oct 2009. until then there remains the many basic fundamentals question.

1. jobless rate in america.

2. stabilise of house prices.

3. stimulus plan of world economy.

we arent seeing any of those taking effect. so predicting end of this year is just wishful thinking.

4sg SG

Any idea on the proposed toxic asset buyback scheme?

I am sceptical of it....

Ice Dive SG

AIG failing wouldn't hurt the top executives much, considering the money they've already been getting they can still live comfortably to ride out the tide and take their time to find another top executive job.

It would however, hurt the pension funds that has invested in AIG. That would in turn hurt the pension holders who have invested their equivalent of the CPF into AIG. They would probably be the real victims if AIG falls.

Ya lo .. such a unfair world. I even wrote a hate mail to AIG and cancel a policy ... ha ... pretty childish but still shiok ...

Its the same for banks, their bonus got cut but they are raising their base salaries ... In essence they are still the one reaping the benefits. I wonder if anyone put a website on the list of bankers (scums). If the govt is not bailing them out , its them who will be fired so its only human nature to not recipocate a good gesture when money is at stake. Well ... I guess for me I can only withdraw all my money when time is up from Citigroup then . Of cos I hope that the average americans can do something to these scums then.

Worldlybusinessman SG

great news.

means after i came out of NS the price of car will drop like

The COE is a flawed concept. It was meant to control the purchase of cars and traffic congestion bu tjust falls flat in times like this. There will be more cars on the roads now and the original purpose of COE is to curb them right?. What happends now?

reyes SG

toxic asset buyback scheme will start in about 6mths time.

but question remain

1. whether the 1trillion plan by treasury is enough. it is estimated toxic asset could be few trillion.

2. what is fair value?

3. will bank want to sell at market price?

Stevenson101 SG

toxic asset buyback scheme will start in about 6mths time.

but question remain

1. whether the 1trillion plan by treasury is enough. it is estimated toxic asset could be few trillion.

2. what is fair value?

3. will bank want to sell at market price?

But considering the original asset price was inflated because of easy credit, how is the scheme going to get back the money?Would house prices ever climb back up to that price without the dollar devaluing ?

From what i can understand, the scheme is funded by the Federal Reserve printing money not because the US government actually having 1 trillion in reserve cash nor have they suddenly discovered a massive oil field/gold mine/diamond mine as actual products to exchange for that sudden 1 trillion dollars that they had.

So when the 1 trillion dollar flow back out into the global economy, does this mean that the US has just robbed the world of 1 trillion dollars worth of resources and services?

reyes SG

hi stevenson,

i din follow the detail how tim G his toxic asset buyback plan.

But from what i know, the banks do classify their toxic asset into category, the super toxic, not so toxic and less toxic. the banks would probably unleash it super toxic first to test market pricing. If market response is poor , the buyback scheme could fail.

as of whether the American is printing money to finance it , well, i dont think they have other way out.

that is why american will never consider allowing USD to be replace as world trading currency.

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