Just happened to read this article on Bloomberg dated Aug. 24 - Bank of America Corp's (BOA) sweetheart deal in return for its $2 billion investment in Countrywide Financial Corp. It helps being a cash rich white knight .
OK, I am green-eyed and I am clearly not Warren Buffet. But read this article on Bank of American deal its 'saving' in Countrywide is clearly in the favor of BOA of course.
Tuesday, August 28, 2007
Brewing the Perfect Storm
This article is written by Andy Sng(Assetia Asset Management) on what he thinks of the market.
I expect the ABCS market to remain tight as investors shun risk from asset backed commercial papers. Billions of ABCP may need to be rolled over in the next few days or weeks. This jitter could spill over to other assets if sustained .
This means that the short term credit market (and borrowing costs) will remain nervous, prompting central banks to continue injecting liquidity to tamper this burden (and encourage confidence). However, sustained injections and FED cuts (if any) will lead to stabilization of the markets but the price of inflation will have to be paid down the road. Also, the injection may find its way to provide more easy credit to areas not intended for.
What is worrisome is the perceived certainty of central bank intervention that encourages unwarranted risk-taking. Not too long ago, investors will not bat an eye to take on additional risk in order to earn a mere 20 basis or so more. Today, borrowers are crying at having to pay 80 basis more and still not attracting investors. What about paying a “reasonable” price for risk-taking, like 300 basis or 500 basis more? No, scream loud enough (“or be too big to fail”) and FED will come to the rescue. Stocks markets had hardly given up its gain this year when the world “swoon”, and looked to FED for action. It seems that central banks have become “Guardians of asset prices” or “Asset reflators” of the new world .
This reminds me of childhood times when “Daddy” always have more money no matter how we spend them. So spare the rod and spoil the child – we are brewing a perfect storm
I expect the ABCS market to remain tight as investors shun risk from asset backed commercial papers. Billions of ABCP may need to be rolled over in the next few days or weeks. This jitter could spill over to other assets if sustained .
This means that the short term credit market (and borrowing costs) will remain nervous, prompting central banks to continue injecting liquidity to tamper this burden (and encourage confidence). However, sustained injections and FED cuts (if any) will lead to stabilization of the markets but the price of inflation will have to be paid down the road. Also, the injection may find its way to provide more easy credit to areas not intended for.
What is worrisome is the perceived certainty of central bank intervention that encourages unwarranted risk-taking. Not too long ago, investors will not bat an eye to take on additional risk in order to earn a mere 20 basis or so more. Today, borrowers are crying at having to pay 80 basis more and still not attracting investors. What about paying a “reasonable” price for risk-taking, like 300 basis or 500 basis more? No, scream loud enough (“or be too big to fail”) and FED will come to the rescue. Stocks markets had hardly given up its gain this year when the world “swoon”, and looked to FED for action. It seems that central banks have become “Guardians of asset prices” or “Asset reflators” of the new world .
This reminds me of childhood times when “Daddy” always have more money no matter how we spend them. So spare the rod and spoil the child – we are brewing a perfect storm
Monday, August 27, 2007
Your Mindset and Online Automated Income
Since learning this and currently on a mentoring course, I begin to learn to be more computer savvy. In the old days, I do not even bother to turn on the laptop to read my news but would rather have a physical newspaper instead. But once I started going on the net more intensively, I discovered the wealth of information there, and begin to take a more active interest. Although, there are a lot of scams too. I thought I would like to share this topic below as it applies to myself too.
Your Mindset is one of the key ingredients to success, you should focus and organize your time and efforts on it. You can consciously be making an effort to learn all you know on online business but subconsciously, sabotaging yourself by not making a physical effort to start it.
Success requires conscious efforts, it needs your
1) time and effort
2) Your commitment
3) You have to make a conscious decision that failure is not an option
4) Do not be impatient, be conscientious and patiently learn.
There may be some who thinks that it is not easy to start up given that they lack the neccessary computer skills, or they do not seem to find enough time...well, they are excuses as it can be learned or via use of aids.
Take Ewen Chia, who is the acknowledged 'World's No 1 Super Affiliate' , he started out not knowing much about the internet world but he persisted for 5 years on the internet after his daily work hours from 9pm to 3pm before he finally suceeded. With his knowledge has come his desire to share and help out those who are continuing to come out into the market. He has some products which can cut down the learning process as well as help 'instant start ups'. If Ewen can succeed, then follow his footsteps. I am. Anyway, the system which I am also currently using, is Ewen's plug-play turnkey money-machine , I find that Ewen is very generous with his information given in it and I was able to follow the instructions to set up the system. So too is the technical support staff who are very helpful.
Your Mindset is one of the key ingredients to success, you should focus and organize your time and efforts on it. You can consciously be making an effort to learn all you know on online business but subconsciously, sabotaging yourself by not making a physical effort to start it.
Success requires conscious efforts, it needs your
1) time and effort
2) Your commitment
3) You have to make a conscious decision that failure is not an option
4) Do not be impatient, be conscientious and patiently learn.
There may be some who thinks that it is not easy to start up given that they lack the neccessary computer skills, or they do not seem to find enough time...well, they are excuses as it can be learned or via use of aids.
Take Ewen Chia, who is the acknowledged 'World's No 1 Super Affiliate' , he started out not knowing much about the internet world but he persisted for 5 years on the internet after his daily work hours from 9pm to 3pm before he finally suceeded. With his knowledge has come his desire to share and help out those who are continuing to come out into the market. He has some products which can cut down the learning process as well as help 'instant start ups'. If Ewen can succeed, then follow his footsteps. I am. Anyway, the system which I am also currently using, is Ewen's plug-play turnkey money-machine , I find that Ewen is very generous with his information given in it and I was able to follow the instructions to set up the system. So too is the technical support staff who are very helpful.
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