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So now we know why the rich becomes richer and the poor, poorer. The HOLE becomes so BIG it is not easy to patch up. Don't read too much into it.....it is just to calm The Markets around the world.
All the 'rubbish' created by America have to be cleaned up ...really clean b4 confidents return! It is another HUGE NATO in the making - EVERYONE IS TELLING EVERYONE WHAT TO DO Russia told China, China told EU, EU told Japan, Japan told India, India told America and America told the world that money makes the world goes round and round and give us your money........ and in the end it is "I told you so"! Cheers!
Goldman Sachs ready to hand out £7bn salary and bonus package… after its £6bn bail-out
Posted: 02 Nov 2008 07:11 AM CST
so this is what the bail out money will be used for. not for liquidity and all but to hand out the bonuses for a job well done!
Goldman Sachs is on course to pay its top City bankers multimillion-pound bonuses - despite asking the U.S. government for an emergency bail-out.
The struggling Wall Street bank has set aside £7billion for salaries and 2008 year-end bonuses, it emerged yesterday.
Each of the firm’s 443 partners is on course to pocket an average Christmas bonus of more than £3million.
The size of the pay pool comfortably dwarfs the £6.1billion lifeline which the U.S. government is throwing to Goldman as part of its £430billion bail-out.
As Washington pours money into the bank, the cash will immediately be channelled to Goldman’s already well-heeled employees.
News of the firm’s largesse will revive the anger over the ‘rewards for failure’ culture endemic in the world of high finance.
The same bankers who have brought the global economy to its knees seem to pocketing the same kind of rewards they got during the boom years.
Gordon Brown has vowed to crack down on the culture of greed in the City as part of his £500billion bail-out of the UK banking industry.
But that won’t affect the estimated 100 London partners working at Goldman Sachs’s London headquarters.
The firm - known as Golden Sacks for the bumper bonuses it pay its top bankers - is expected to cut the payouts by a third this year. However, profits are
falling much faster. Earnings have plunged 47 per cent so far this year amid the worst financial crisis since the Great Depression.
This has wiped more than 50 per cent off the company’s market value.
For me i am allocating some cash to buy into the following this week:
- China Fish (Oversold and now catching up). Luckily I picked up some after open
- Cosco (has order till 2011) when the recession is over, it has all the cap to suck in all the projects available. I expect recession should be over by 2H09.
- Fibrechem (waiting to buy as it should not be lower than its peer). Waiting for the stubborn 28.5c sell queue to clear for signal.
I think market will rally next week or so due to new US president. Then reality comes in again. It will take a while for new policies to see results. Market will remain volatile but worst is perhaps over. Now the problem will be profit and not financial crisis.
That's why the 'God Bless America' phrase is coined for this purpose 
Cheers!
Cheers!
If Obama takes tenure at a bad time, it has nothing to do with his personal ability...
since adversity 'fell in his lap'.
Thus, he may need much divine aid to overcome the overwhelming odds against him...
But he may triumph ... 
The Stock Markets hate changes as any changes will surely have uncertainties. I've yet to see changes without any resistance. Thence, The STock Market will resist and react accordingly. The Stock Market will be punished initially!
You can't change America and the People by simply 'CHANGE' alone! I feel it is better to reform first and change slowly just like what PRC is doing. A lot of pressures on Obama if he wins - being the 1st black President of USA is already a pressure itself. He has to perform much much more better than George Bush; and the current crisis certainly is not going to help. Cheers!
Based on my experience, the democrats bring better US economy. Also on the hindsight, their success bring a lots of innovative ideas that are doublesworded. Think clinton's introduction of securitization in 1987 which leads to the subprime problem. I do not favour the Elephants. See how GW Bush championed the deficits to US. It is unimaginable but ppl argued he fought 2 wars. So what?
How it affects US Energy price?
U.S. presidential candidates John McCain and Barak Obama offer only subtle differences in their approaches to the nation's energy challenges. Obama emphasizes renewable energy to reduce dependence on foreign oil, while McCain puts more faith in drilling. Obama is less enamored of nuclear power than McCain. Obama supports subsidies for ethanol production while McCain would cancel them and open the market to foreign competitors. But no matter who wins, energy prices are likely to climb.
Historically, stock mkt tends to edge higher before US Election. I think this time is no different. In fact, we had seen the mkt plumet to 8000+ and quite quickly climbed back to 9000 range within weeks. Althougn this time the Election is being held at the brim of economy recession worldwide, I still like to think that the mkt will rally in the coming week.
One thing for sure, whoever become the next president of US, the economy will not recover in the first 2 years of their 4 years term. Economy in US is huge, and cannot be controlled by just one man. I aslo would like to believe the Barrak Obama will steer the economy better than John McCain...just feeling no data to support my comment.
Not quite...new president can also mean uncertainty...could make market jittery...
Next week is the Election week for US. Historically Stock Market get a boosts from the new presidency. Is US market moving up strongly next week? Your comment?