US Companies Financial Meltdown - Capitalism at its best?

[Game Theory]

Duh! Kazi ipo. Finance is not my forte so I never really even thought about investing in the stock market (not that I have the money to invest). But I try to keep up with the financial world market even though I understand only 10% of it.

Question. And the answer might seem very obvious to most of you. Does that mean the investors' money goes down the drain or there is some kind of insurance since the company went kaput?

Unauliza tende Baghdadi?

 

[Game Theory]

Washington Mutual's (WM.N) board would seriously consider a merger offer even at a discount to what the Seattle-based thrift believes it is worth, as it faces mounting pressure to pursue options amid credit-rating downgrades, an analyst at Merrill Lynch said.

"Recent markets disruption and lack confidence that Washington Mutual can withstand the credit cycle are increasing the likelihood that it will need to seek shelter from the storm through a merger," analyst Kenneth Bruce said in a note dated Sept 16.

Rating agency Standard & Poor's downgrade of the thrift to "junk" status, "is likely to add more impetus to Washington Mutual to act quickly," Bruce, who lowered his price target on the stock to $1 from $3, said.

The S&P downgrade came on Monday, and followed downgrades last week by Moody's Investors Service and Fitch Ratings.

S&P had expressed concern about the thrift's share price, and said "it increasingly appears that market conditions could overtake credit fundamentals and leave the company with greatly diminished financial flexibility."

Washington Mutual's stock has lost almost 94 percent of its value from its 52-week high of $39.25 on September 19, 2007, to its close on Tuesday of $2.36, as investors worry about continued losses related to risky real-estate loans.

The company's woes has led to speculation that it is primed for a takeover.

On Wednesday the New York Post reported, citing sources, U.S. federal regulators recently called a number of banks asking if they would consider buying Washington Mutual should it eventually falter.

In recent days federal banking regulators contacted Wells Fargo & Co (WFC.N), JPMorgan Chase & Co (JPM.N), HSBC (HSBA.L) and several other financial institutions to gauge their interest in a possible acquisition of the largest U.S. savings and loan institution, the paper said.

Merrill's Bruce said the retail-bank footprint of the company remains attractive to potential buyers, but the poor quality of its balance sheet may hinder prospects getting full-value from a sale.

Shares of Washington Mutual were trading down 20 cents at $2.16 Wednesday morning on the New York Stock Exchange.

ICADON
interesting....hii post yako ina habari mbili ..ya kwanza

inaonyesha kuwa kinachoendelea pale Wall Street kimenikumbusha hii movie....FIGHT CLUB wakat inisha... It's kind of like that, without the buildings blowing up.

Or lets say I'm sort of picturing a "Bridge On the River Kwai"-type scenario. kila mwenye lake anatakiwa ku pick up his/her uniform.

suala la pili umenikumbusha hii article iliyoandikwa na Joseph Stiglitz, poacher turned gamekeeper but still something of a capitalist:

Joseph Stiglitz: The financial crisis is the fruit of dishonesty on the part of financial institutions | Comment is free | The Guardian

The banks were laying huge bets with each other over loans and assets. Complex transactions were designed to move risk and disguise the sliding value of assets.

Which is to say the markets have been wantonly fraudulent on top of the fraud of fractional reserve banking. aND this shows is that free market ideology is bollocks, but most people already knew that.

 

[Mkandara]

Well, finally chicken has come home to roost!....
Ajabu ya yote haya ni kwamba leo hii Marekani imebadilika kuwa Wajamaa wazuri wa kutaifisha wakitoa kila sababu ambazo wao wenyewe hawakuzikubali mika ya nyuma.. wakati huop huo Mchina ndio kwanza anashamiri ndani ya Ubepari...
Nilkisema kila shilingi ina pande mbili!...kwa mara ya kwanza tunauona upande wa pili ambao socialism works for the rich!..

 

[mapambano]

When the world wealth is in the hands of few people something has to give in. And thats exactly what is happening...there is no system without faults, may be Islamic economics.
Kuran, T.: Islam and Mammon: The Economic Predicaments of Islamism.

 

[Game Theory]

Well, finally chicken has come home to roost!....
Ajabu ya yote haya ni kwamba leo hii Marekani imebadilika kuwa Wajamaa wazuri wa kutaifisha wakitoa kila sababu ambazo wao wenyewe hawakuzikubali mika ya nyuma.. wakati huop huo Mchina ndio kwanza anashamiri ndani ya Ubepari...
Nilkisema kila shilingi ina pande mbili!...kwa mara ya kwanza tunauona upande wa pili ambao socialism works for the rich!..

Do you agree that Sovereign wealth Funds might be the best solution out there?

 

[Game Theory]

Report: Morgan Stanley CEO: 'Need a Partner or Not Going to Make it'


Article ya NY Times la leo lina explosive quote attributed to Morgan Stanley CEO John Mack:

As Fears Grow, Wall St. Titans See Shares Fall
source: http://www.nytimes.com/2008/09/18/business/18wall.html?_r=1&oref=slogin

Seeking to avoid the kind fate that led Lehman and Bear Stearns to collapse, John J. Mack, Morgan Stanley's chief executive, made an unsuccessful attempt Tuesday evening to convince Citigroup chief executive Vikram S. Pandit to enter into a combination, according to people briefed on the talks.

"We need a merger partner or we're not going to make it," Mr. Mack told Mr. Pandit, according to two people briefed on the talks. Mr. Pandit, a former senior investment banker at Morgan Stanley, said Citigroup was not interested. [Citi] is thinking of deals it can strike with consumer banks, like buying Washington Mutual out of bankruptcy, that would provide it with cheaper deposit funding emphasis added

Ukiendelea kuisoma hiyo article utaona Mr. Mack amekuwa akilalamikwa regulators about short sellers spreading rumors.Na kama hii quote itakuwa ni kweli then Mr. Mack has just given short sellers plenty of ammunition.

again the article continues....

"While Wall Street has gone through tough times before, only to emerge bigger and stronger, some question whether the industry can rebound quickly after using high levels of leverage, or borrowed money, to binge on risky investments. Those investments have proved to be disastrous. Worldwide, financial companies have reported more than $500 billion in charges and losses stemming from the credit crisis - a figure some specialists say could eventually exceed $1 trillion."

Hivi at this rate, what industry is going to exist? I mean, COULD equal $1 tril -- COULD? In case they missed it, we've barely cracked the books, and papered over the level 3s we dont want to see. What miracle is going to keep all that crap sitting there to a smaller size than what has been acknowledged? Good grief.

 

[Game Theory]

Hang Seng Cliff Diving

The Hang Seng market is off 7.4%

The Shanghai composite is off 5.8%

The Nikkei is only off 3%

Another day, another Asian rout.

 

[Idimi]

Hang Seng Cliff Diving

The Hang Seng market is off 7.4%

The Shanghai composite is off 5.8%

The Nikkei is only off 3%

Another day, another Asian rout.

Ninavyohisi kutakuwa na ukosefu mkubwa wa ajira huu mwaka iwapo wachumi hawatakaa sawa kukoa janga hili la kulegalega kwa uchumi.
Nilikuwa nikiangalia BBC jana, wachumi wa Kimarekani wanahaha kurekebisha mambo ambayo kwa kweli yanawaumiza kichwa, hasa kutoa mikopo kwa makampuni makubwa ya kifedha, kama AIG.
]Huenda kuna utatuzi wa maana, tuvute subira.

 

[Game Theory]

Ninavyohisi kutakuwa na ukosefu mkubwa wa ajira huu mwaka iwapo wachumi hawatakaa sawa kukoa janga hili la kulegalega kwa uchumi.
Nilikuwa nikiangalia BBC jana, wachumi wa Kimarekani wanahaha kurekebisha mambo ambayo kwa kweli yanawaumiza kichwa, hasa kutoa mikopo kwa makampuni makubwa ya kifedha, kama AIG.
]Huenda kuna utatuzi wa maana, tuvute subira.

Could it be an Asian fever???

 

[Rev. Kishoka]

Report: Morgan Stanley CEO: 'Need a Partner or Not Going to Make it'


Article ya NY Times la leo lina explosive quote attributed to Morgan Stanley CEO John Mack:

Ukiendelea kuisoma hiyo article utaona Mr. Mack amekuwa akilalamikwa regulators about short sellers spreading rumors.Na kama hii quote itakuwa ni kweli then Mr. Mack has just given short sellers plenty of ammunition.

again the article continues....


Hivi at this rate, what industry is going to exist? I mean, COULD equal $1 tril -- COULD? In case they missed it, we've barely cracked the books, and papered over the level 3s we dont want to see. What miracle is going to keep all that crap sitting there to a smaller size than what has been acknowledged? Good grief.

GT,

London Bridge is falling down.. falling down, falling dow...n

Everyone for himself and God for us all!

Even dem gals in clear heels will suffer, no more singles to hand out

 

[Game Theory]

CNBC: Morgan Stanley and Wachovia in Advanced Merger Talks

From CNBC: Morgan Stanley in Advanced Merger Talks With Wachovia

Morgan Stanley ... is in advanced merger talks with Wachovia Bank ... Morgan will begin formal merger negotiations with Wachovia sometime Thursday.

This must be that new math I've heard so much about. A loser + A loser = Big Winner! Rally time!

 

[Mkandara]

Game theory,
The role of Government is to prevent the populace from being screwed by greedy corporations, in this case we see The government seeking to save the sinking Titanic... hao Abiria aaaah!.. Titanic ikiokolewa hao watu watakuwa salama tu...mmmmmmh!
Mkuu binafsi sioni ndani kabisa kuwa Sovereign Wealth Funds inaweza kuwa solution kwa sababu haya matukio yote ni matunda ya kile walichokipanda..
Ni makosa yaliyofanyika Washington toka mwanzo kuto regulate hivi vitega uchumi wanao hold control stakes in all major sectors kiasi kwamba hata hiyo Wall street yenyewe wanaichezea na ku manipulate figures huku sisi kina kabuntas tukiamini elimu zetu za darasa kuhusiana na supply na demand..
Kwa udogo wetu mwalimu aliweza sana kuweka hivi vikwazo ambavyo vililaumiwa sana na nchi za magharibi na pengine hazikuweza kufanya kazi kwa sababu mwalimu alikuwa aki deal na mbegu yaani pale tunapopanda alihakkisha ni mbeghu gani zinapandwa kiasi kwamba aliweza kutuhadaa na ku control demand kwa kutumia siasa..Sasa matatizo yetu yanaweza kuwa hatukumwagilia majiya kutosha ama jua kali lilizua Ukame hivyo mbegu zikafa kabla hata ya mmea kuota..
Sasa tukirudi kwa hawa wenzetu ndio kama hivyo haya ni matunda yanayovunwa baada ya kupandikiza mbegu za kutengenezwa ktk maabala...siku zote tumekuwa tuki enjoy matunda makubwa yenye juice kibao na yaliyovunwa kwa muda mfupi sana.. Uchumi wa leo ni sawa na matokeo ya Modified food product siku zote hupimwa na kusifiwa kwa ukubwa wake, muda mfupi na kadhalika lakini sio side effect zake - Ukiona Apple ni apple kweli kubwa kama embe sio sawa na hilo la organic ambalo linaonekana limesinyaa na haliwezi kumshjibisha mtu mmoja!..
Tatizo ni pale mtu mmoja mmoja atayakapo anza kufa na chanzo kikajulikana kuw ni matunda ya maabala yaliyojenga kwa steroid...Demand inashuka na wananchi wanahaha..with weakening demand ni lazima ita promote low sales ambayo bila shaka ita trigger production cuts.. jibu lake tunapata job losses na hivyo badala ya watu kuogopa tu watakuwa hawana tena uwezo wa kununua kitu.. with high price in gas na chakula, Outsourcing na kadhalika mkuu wangu sioni west na hasa US watatokea wapi!.. lakini zipo njia nyingine itakuja patikana, hawatakwisha kabisa maanake hata Tanzania tulitoka salama ktk Ujamaa iwe US!..
SWF yawezekana kuwa dawa ya kutuliza mafua lakini haiponyi hata kidogo..cancer hili lnasambaa na impact yake itatufundisha mengi sana kuhusiana na Uchumi...Kinachofanyika sasa hivi ni kujaribu kupunguza hofu ya wananchi. serikali inaingia gharama kufidia gharama za hawa matajiri na mashirka yaliyotengeneza hizo mbegu mbaya ambazo zilipandwa kiholela bila kutazama mazingira..bila kuingiliwa wala kutazamwa na serikali ati kwa sababu tu tumeambiwa uchumi ni demand na supply!..
well, tumepata somo ito mkuu na tutajifunza mengi mwaka huu kuhusiana na somo hili..

 

[Kichuguu]

Inawezekana kabisa kuwa kuna sababu nyinginezo zilizofanya uchumi wa marekani uyumbe, ila mimi nadhani kuwa hamu ya wamarekani ya kuwa na serikali inayozuia abortion rights na gay marriage ndizo zilizolifikisha taifa hili hapa. Serikali hii ya sasa iliingia madarakani kwa kete hiyo na ndiyo imevuruga uchumi huu kutoka kwenye budget ya sulplus hadi kuwa budget ya deficit.

Hebu nipeni pole ndugu zanguni. Nilikuwa na stocks 850 za benki moja inaitwa New Century nilizokuwa nimenunua kwa dola 20 kila moja. Stocks zile zikafanya vizuri sana na kukua hadi dola 120 na kitu. Kuelekea mwishoni mwa spring semester, nikawa buzy na mambo ya shule nikawa mzembe wa kushindwa kuangalia mwenendo wa stock kwa siku nne mfulilizo. Siku ya tano nikakuta stock zile zimeanguka kutoka dola 120 hadi dola 5. Nikadhani ni shock tu, kesho yake nikakuta stock zimebaki dola mbili tu. Wakati huo swala la subprime lending likawa hot issue sana na kwa uchungu nikashsindwa kuuza stock zile. Leo hii stock zile zina thamani ya senti 0.01!!!!

 

[Ogah]

Inawezekana kabisa kuwa kuna sababu nyinginezo zilizofanya uchumi wa marekani uyumbe, ila mimi nadhani kuwa hamu ya wamarekani ya kuwa na serikali inayozuia abortion rights na gay marriage ndizo zilizolifikisha taifa hili hapa. Serikali hii ya sasa iliingia madarakani kwa kete hiyo na ndiyo imevuruga uchumi huu kutoka kwenye budget ya sulplus hadi kuwa budget ya deficit.

Hebu nipeni pole ndugu zanguni. Nilikuwa na stocks 850 za benki moja inaitwa New Century nilizokuwa nimenunua kwa dola 20 kila moja. Stocks zile zikafanya vizuri sana na kukua hadi dola 120 na kitu. Kuelekea mwishoni mwa spring semester, nikawa buzy na mambo ya shule nikawa mzembe wa kushindwa kuangalia mwenendo wa stock kwa siku nne mfulilizo. Siku ya tano nikakuta stock zile zimeanguka kutoka dola 120 hadi dola 5. Nikadhani ni shock tu, kesho yake nikakuta stock zimebaki dola mbili tu. Wakati huo swala la subprime lending likawa hot issue sana na kwa uchungu nikashsindwa kuuza stock zile. Leo hii stock zile zina thamani ya senti 0.01!!!!

.....Duuhh....pole sana Prof

 

[Masaki]

Inawezekana kabisa kuwa kuna sababu nyinginezo zilizofanya uchumi wa marekani uyumbe, ila mimi nadhani kuwa hamu ya wamarekani ya kuwa na serikali inayozuia abortion rights na gay marriage ndizo zilizolifikisha taifa hili hapa. Serikali hii ya sasa iliingia madarakani kwa kete hiyo na ndiyo imevuruga uchumi huu kutoka kwenye budget ya sulplus hadi kuwa budget ya deficit.

Hebu nipeni pole ndugu zanguni. Nilikuwa na stocks 850 za benki moja inaitwa New Century nilizokuwa nimenunua kwa dola 20 kila moja. Stocks zile zikafanya vizuri sana na kukua hadi dola 120 na kitu. Kuelekea mwishoni mwa spring semester, nikawa buzy na mambo ya shule nikawa mzembe wa kushindwa kuangalia mwenendo wa stock kwa siku nne mfulilizo. Siku ya tano nikakuta stock zile zimeanguka kutoka dola 120 hadi dola 5. Nikadhani ni shock tu, kesho yake nikakuta stock zimebaki dola mbili tu. Wakati huo swala la subprime lending likawa hot issue sana na kwa uchungu nikashsindwa kuuza stock zile. Leo hii stock zile zina thamani ya senti 0.01!!!!

Pole sana mzee. Kuna hadithi moja niliisoma miezi michache iliyopita humu mtandaoni. Ilikuwa ni hadithi inayohusina na "artificial demand of stocks". It was interesting and what is happening in the US now reflects it.

Ni hadithi ya jamaa mmoja alikwenda kijijini na kuwaambia wanakijiji kwamba anahitaji nyani walio hai na atalipa dola 10 kwa kila nyani. Kijiji kile kilikuwa na nyani wengi sana tena waharibifu wa mazao, kwa hiyo ikawa ni habari njema kwa wanakijiji. Wanakijiji wakaacha shughuli za kilimo wakaanza kukamata nyani na kumpelekea mnunuzi. Baada ya muda nyani wakaanza kuadimika pale kijijini hivyo yule bwana akatangaza bei mpya ya dola 20 kwa kila nyani.

Wanakijiji wakaendelea kuleta nyani lakini kwa uchache sana. Baadaye yule bwana akatangaza bei dola 30 kwa kila nyani, na bado nyani wakawa hawapatikani kirahisi. Baada ya muda akawatangazia wanakijiji kwamba yeye anakwenda mjini kwa muda lakini anamwachia mwenzake ambaye ataendelea kununua nyani ila sasa bei ni dola 50 kwa kila nyani.

Baada ya yule bwana kuondoka, yule mwenzake aliyebaki akawaambia wanakijiji kuwa kwa kuwa nyani hawapatikani kirahisi, basi yeye yuko tayari kuwauzia wale nyani waliokusanywa kwa dola 30 kila nyani, halafu yeye aondoke, kisha yule bwana aliyekwenda mjini atakaporudi toka mjini wao watamuuzia kwa dola 50 kwa kila nyani ambazo ndio zilikuwa bei ya soko kwa wakati huo.

Wanakijiji wakawanunua tena wale nyani karibu wote, yule msaidizi akaondoka. Wakabaki wanasubiri arudi yule bwana wa kwanza ili wamuuzie wale nyani kwa dola 50 kwa kila nyani. Yule bwana hakurudi tena pale kijijini. Hivyo nyani wakawa wengi tena kijijini, usumbufu na uharibifu wao ukabaki pale pale, na pesa zao zimekwenda na maji.

This is the same as to how stock markets work when they are overstretched!!

 

[Yo Yo]

Inawezekana kabisa kuwa kuna sababu nyinginezo zilizofanya uchumi wa marekani uyumbe, ila mimi nadhani kuwa hamu ya wamarekani ya kuwa na serikali inayozuia abortion rights na gay marriage ndizo zilizolifikisha taifa hili hapa. Serikali hii ya sasa iliingia madarakani kwa kete hiyo na ndiyo imevuruga uchumi huu kutoka kwenye budget ya sulplus hadi kuwa budget ya deficit

.
Sijakuelewa hapo......

Siku ya tano nikakuta stock zile zimeanguka kutoka dola 120 hadi dola 5. Nikadhani ni shock tu, kesho yake nikakuta stock zimebaki dola mbili tu. Wakati huo swala la subprime lending likawa hot issue sana na kwa uchungu nikashsindwa kuuza stock zile. Leo hii stock zile zina thamani ya senti 0.01!!!!

Aisee pole sana.....

 

[Mkandara]

Masaki,
Mkuu umemaliza mjadala na hakika ndivyo ilivyo...
Toka Enron walipobainika kucheza na mahesabu ya watu, serikali ikaanza kutupia macho mashirika haya makubwa kumekuwepo na woga fulani kiasi kwamba hawa wenye kucheza na figures wameanza kuingia mitini mmoja mmoja na ukweli unaanza kujulikana kwamba hizo demand ni artificial...
Bila regulation mkuu tumeona nyumbani watu wakiwinda ndugu zetu zeruzeru (Albino) na kupandisha soko la ajabu ambalo hakika haliwezi kubadilisha maisha yao...
Tunachoshuhudia Marekani sasa hivi ni ktk picha kubwa, wakati sisi tunatafuta waganga kutafanikiwa wao mganga mkuu ni Wall street...

Kichuguu,
Pole mkuu wala huna haja ya kusema tupo wengi tu mengine hayafai kusemwa... maanake tumeenda wengi kupiga bao na ramli la kizungu..!

 

[Rev. Kishoka]

Game theory,
The role of Government is to prevent the populace from being screwed by greedy corporations, in this case we see The government seeking to save the sinking Titanic... hao Abiria aaaah!.. Titanic ikiokolewa hao watu watakuwa salama tu...mmmmmmh!
Mkuu binafsi sioni ndani kabisa kuwa Sovereign Wealth Funds inaweza kuwa solution kwa sababu haya matukio yote ni matunda ya kile walichokipanda..
Ni makosa yaliyofanyika Washington toka mwanzo kuto regulate hivi vitega uchumi wanao hold control stakes in all major sectors kiasi kwamba hata hiyo Wall street yenyewe wanaichezea na ku manipulate figures huku sisi kina kabuntas tukiamini elimu zetu za darasa kuhusiana na supply na demand..
Kwa udogo wetu mwalimu aliweza sana kuweka hivi vikwazo ambavyo vililaumiwa sana na nchi za magharibi na pengine hazikuweza kufanya kazi kwa sababu mwalimu alikuwa aki deal na mbegu yaani pale tunapopanda alihakkisha ni mbeghu gani zinapandwa kiasi kwamba aliweza kutuhadaa na ku control demand kwa kutumia siasa..Sasa matatizo yetu yanaweza kuwa hatukumwagilia majiya kutosha ama jua kali lilizua Ukame hivyo mbegu zikafa kabla hata ya mmea kuota..
Sasa tukirudi kwa hawa wenzetu ndio kama hivyo haya ni matunda yanayovunwa baada ya kupandikiza mbegu za kutengenezwa ktk maabala...siku zote tumekuwa tuki enjoy matunda makubwa yenye juice kibao na yaliyovunwa kwa muda mfupi sana.. Uchumi wa leo ni sawa na matokeo ya Modified food product siku zote hupimwa na kusifiwa kwa ukubwa wake, muda mfupi na kadhalika lakini sio side effect zake - Ukiona Apple ni apple kweli kubwa kama embe sio sawa na hilo la organic ambalo linaonekana limesinyaa na haliwezi kumshjibisha mtu mmoja!..
Tatizo ni pale mtu mmoja mmoja atayakapo anza kufa na chanzo kikajulikana kuw ni matunda ya maabala yaliyojenga kwa steroid...Demand inashuka na wananchi wanahaha..with weakening demand ni lazima ita promote low sales ambayo bila shaka ita trigger production cuts.. jibu lake tunapata job losses na hivyo badala ya watu kuogopa tu watakuwa hawana tena uwezo wa kununua kitu.. with high price in gas na chakula, Outsourcing na kadhalika mkuu wangu sioni west na hasa US watatokea wapi!.. lakini zipo njia nyingine itakuja patikana, hawatakwisha kabisa maanake hata Tanzania tulitoka salama ktk Ujamaa iwe US!..
SWF yawezekana kuwa dawa ya kutuliza mafua lakini haiponyi hata kidogo..cancer hili lnasambaa na impact yake itatufundisha mengi sana kuhusiana na Uchumi...Kinachofanyika sasa hivi ni kujaribu kupunguza hofu ya wananchi. serikali inaingia gharama kufidia gharama za hawa matajiri na mashirka yaliyotengeneza hizo mbegu mbaya ambazo zilipandwa kiholela bila kutazama mazingira..bila kuingiliwa wala kutazamwa na serikali ati kwa sababu tu tumeambiwa uchumi ni demand na supply!..
well, tumepata somo ito mkuu na tutajifunza mengi mwaka huu kuhusiana na somo hili..

Mkandara,

Hivi kwa nini tusikufanye mgombea wtu wa Urais au ukapewa hata wizara ya fedha au Biashara na Viwanda?

Brilliant!

 

[Game Theory]

The role of Government is to prevent the populace from being screwed by greedy corporations, in this case we see The government seeking to save the sinking Titanic... hao Abiria aaaah!.. Titanic ikiokolewa hao watu watakuwa salama tu...mmmmmmh!

Mkandara, The wealthy do not do their own suffering. They subcontract.

However its fair to say that this problem is bigger than all that, Mr. MK. It is a deliberate systemic creation by generations of freemarket intellectuals prophetising friedmanomics, combined with fancy modellers and outrageous trust in computers to improve the information transparency of markets.

I know alot of people have bailed out of America and it wasnt because of politicians (well not entirely them) but the ordinary American people...they have been brainwashed since childhood with a whole pile of myths and outright lies.


The result is that 98% of the population are simply unthinking; unable to distinguish between belief and knowledge/truth. If Americans believe something to them it is self-evidently true; because truth is what Americans say it is. The world suffers as a result of this.

Americans believe in the market in the same way that evangelicals believe in god. The ruling establishment (ie the 10 or 20,000 families that own 90% of America) will find a way to spin this current financial crisis and to present it as a confirmation that the US is a special nation favored by God; as an affirmation that greater consumption is the greatest good; that universal healthcare is a synonym for soviet style communism; that CEOs are vastly underpaid whereas those worthless McCain fundamentals (especially those of the union variety) are holding the state to ransom; and that Iran is building a bomb to blow us all to kingdom come. The truly sad thing is that 98% of Americans and probably a majority of hawa wadhungu wa UK will end up believing it.

Mkuu binafsi sioni ndani kabisa kuwa Sovereign Wealth Funds inaweza kuwa solution kwa sababu haya matukio yote ni matunda ya kile walichokipanda..

Nkaubali na kukukatalia point yako hapo juu kwa babu mbali mbali lakini la muhimu zaidi ni kuwa you cannot underestimate the power of SWF's na zaidi za Persian Gulf kwa sababu hawajamaa wanatumia billions from oil revenues to change the face of global finance by buying big chunks of blue chip companies, partnering with private equity firms to do buyouts, and increasingly snapping up companies on their own.Sasa as this so called credit crunch/crisisdeepens usijeshangaa kuona investment banks and buyout firms are stepping back from dealmaking to nurse their wounds.Sasa mfano ni Gulf funds, which already have more assets than the entire $1 trillion buyout industry, are filling the void.The rules of the Game bwana Mkandara ishachange ndio maana Mike Ashley wa Newcastle kajichimbia Mediriend Hotel wiki nzima iliyopita, na watu kama akina Steve Schwarzman wa BLACKSTONE GROUP are no longer major players in the game kwa sababu ya hawa jamaa wafuatao ambao wako regarded as the new kings of WALL STREET.


1)

huyu jamaa ni Baalawy wa DUBAI GROUP ambayo ina 20% stake in NASDAQ

Bader M. Al Sa'ad
Kuwait Investment Authority

Assets: $213 billion (ten hii ni conservative estimate.)

15% ya funds zao hawa jamaa wameinvest in emerging markets, buyout funds and hedge funds. Na hiyo ni roughly about $32 billion. Na stake OMX group ya Sweden



2)

Sameer Al Ansari
Dubai International Capital

Assets: $12 billion

Last time i checked huyu jamaa au Mr Al Ansari has engineered six solo buyouts,ambazo inainclude museum operator Tussauds Group, (ambayo inaown madam tussaud hapa London) ambayo aliinunua toka kwa jamaa wa Charterhouse Capital Partners for $1.6 billion in 2005.Mwaka jana alinunuaa big stake in Sony na hedge fund behemoth Och-Ziff Capital Management.

Soud Ba'alawy
Dubai Group

Assets: $7 billion (est.)

Ba'alawy is assisting Dubai's ruler to build a Wall Street of the Middle East. In September, he agreed to take a 19.9% stake in Nasdaq as part of a play for a stake in Sweden's OMX Group. The terms for the deal were approved in December.

3)

David Jackson
Istithmar

Assets: $8 billion

Huyu jamaa American, na onbehalf of Istimar ambako yeye ni bosi has invested in more than 50 companies for the investment arm of government-owned Dubai World. by the way sometimes mwaka jana alinunua luxury retailer Barney's for more than $900 million. Before that, he bought a 3% stake in the $20 billion European hedge fund GLG Partners....sijui keshapewa mtoto wa iarabu au sijui ndio akina Mkthoum wanamtumia kama front tuu lakini the bottom line he must be really good.

3)

Sheikh Hamad bin Jassim bin Jabir Al-Thani

Qatar's PM na bosi wa Qatar Investment Authority

Assets: $50 billion

Huyu mwarabu mjanja wake ni hedge fund activist Nelson Peltz ambaye alikuwa front kwenye ile ishu ya ku to shake up British beverage company Cadbury Schweppes again kama uko UK utakumbuka kuwa last year hawa jamaa wakisaidiwa na Iranian Jew anaitwa Chenguiz wali launch a bid for the grocery chain Sainsbury...lakini sijui iliishia wapi


5)

Khaldoun Al Mubarak
Mubadala Development Company
hawa MUbadala ni kama wahuni vile kwani hawataki details zao zijulikane lakini they are big players kwa sababu utawaona wanatangaza kwenye Formula One na usisahau kuwa walinunua large enough to buy stakes in the Carlyle Group na Advanced Micro Devices (AMD)mwaka jana.Initiative yao nyingine ni multibillion-dollar green energy project called Masdar ambayo nitakupa data zake zaidi hapo baadae lakini kwa kukudokezea tuu ni Norman Foster alipewa enda ya kudesign hiyo project....








ZAIDI hebu soma hii article ya ECONOMIST niliyokupa hapo nyuma.

Ni makosa yaliyofanyika Washington toka mwanzo kuto regulate hivi vitega uchumi wanao hold control stakes in all major sectors kiasi kwamba hata hiyo Wall street yenyewe wanaichezea na ku manipulate figures huku sisi kina kabuntas tukiamini elimu zetu za darasa kuhusiana na supply na demand..
Kwa udogo wetu mwalimu aliweza sana kuweka hivi vikwazo ambavyo vililaumiwa sana na nchi za magharibi na pengine hazikuweza kufanya kazi kwa sababu mwalimu alikuwa aki deal na mbegu yaani pale tunapopanda alihakkisha ni mbeghu gani zinapandwa kiasi kwamba aliweza kutuhadaa na ku control demand kwa kutumia siasa..Sasa matatizo yetu yanaweza kuwa hatukumwagilia majiya kutosha ama jua kali lilizua Ukame hivyo mbegu zikafa kabla hata ya mmea kuota..
Sasa tukirudi kwa hawa wenzetu ndio kama hivyo haya ni matunda yanayovunwa baada ya kupandikiza mbegu za kutengenezwa ktk maabala...siku zote tumekuwa tuki enjoy matunda makubwa yenye juice kibao na yaliyovunwa kwa muda mfupi sana.. Uchumi wa leo ni sawa na matokeo ya Modified food product siku zote hupimwa na kusifiwa kwa ukubwa wake, muda mfupi na kadhalika lakini sio side effect zake - Ukiona Apple ni apple kweli kubwa kama embe sio sawa na hilo la organic ambalo linaonekana limesinyaa na haliwezi kumshjibisha mtu mmoja!..
Tatizo ni pale mtu mmoja mmoja atayakapo anza kufa na chanzo kikajulikana kuw ni matunda ya maabala yaliyojenga kwa steroid...Demand inashuka na wananchi wanahaha..with weakening demand ni lazima ita promote low sales ambayo bila shaka ita trigger production cuts.. jibu lake tunapata job losses na hivyo badala ya watu kuogopa tu watakuwa hawana tena uwezo wa kununua kitu.. with high price in gas na chakula, Outsourcing na kadhalika mkuu wangu sioni west na hasa US watatokea wapi!.. lakini zipo njia nyingine itakuja patikana, hawatakwisha kabisa maanake hata Tanzania tulitoka salama ktk Ujamaa iwe US!.."Why are there all these controls when opening a bank account but traders are allowed to sell shares they do not own?"

The above reminded me of this...

Last month nilienda Europe na nikarudi na Euros kama 2000 hivi and I found it almost impossible to change them in a small town ( Wiltshire to be specific)

First bank: "Did you get these euros from us? Coz if not, we're not allowed to change them..."

Second bank: "Do you have an account with us, coz if not, we can't change them..."

Third bank: "Where did you get these euros? You know, we have strict rules about money laundering..."

I went laughing all the way OUT OF the bank....lakini ndio ukweli wenyewe huo.

SWF yawezekana kuwa dawa ya kutuliza mafua lakini haiponyi hata kidogo..cancer hili lnasambaa na impact yake itatufundisha mengi sana kuhusiana na Uchumi...Kinachofanyika sasa hivi ni kujaribu kupunguza hofu ya wananchi. serikali inaingia gharama kufidia gharama za hawa matajiri na mashirka yaliyotengeneza hizo mbegu mbaya ambazo zilipandwa kiholela bila kutazama mazingira..bila kuingiliwa wala kutazamwa na serikali ati kwa sababu tu tumeambiwa uchumi ni demand na supply!..
well, tumepata somo ito mkuu na tutajifunza mengi mwaka huu kuhusiana na somo hili..[/SIZE]

[/QUOTE]


I agree with you on second point and i think this is how it works, very briefly. X billions are lent every year at Y % interest, and after one year the system has to collect X X*Y/100 billions. Where does the extra money (X*Y/100) come from? In gold-standard systems, from foreign trade. In fiat currency system like ours, from printing press.

From printing press? But money is created only when credit is issued, not when the interest is charged. Thus in order to infuse the extra money into the system, banks have to do it by expanding credit, lending X billions this year, X X*Y/100 billions next year, and so on. They have to keep expanding credit, or the books will become unbalanced.

But there is a limit how much credit-worthy customers are out there. Hitting this limit, the banks have to lower the standards of lending, without which further credit expansion is impossible.

That's what happened, and the banks are as much to blame in the current crisis as anyone who supports this system - which is pretty much everyone. The real culprit is the interest rate that is larger than the rate of the economic growth. Only banning such interest rate will cure the problem.

kuhusu SWF's siwezi kusema zaidi lakini nakushauri ulisome hili doc hapa hivi:

[media]http://www.ssga.com/library/esps/Who_Holds_Wealth_of_Nations_Andrew_Rozanov_8.15.05REVCCRI1145995576.pdf[/media]



samahani kwa post ndefu kidogo....

 

[Rev. Kishoka]

Inawezekana kabisa kuwa kuna sababu nyinginezo zilizofanya uchumi wa marekani uyumbe, ila mimi nadhani kuwa hamu ya wamarekani ya kuwa na serikali inayozuia abortion rights na gay marriage ndizo zilizolifikisha taifa hili hapa. Serikali hii ya sasa iliingia madarakani kwa kete hiyo na ndiyo imevuruga uchumi huu kutoka kwenye budget ya sulplus hadi kuwa budget ya deficit.

Hebu nipeni pole ndugu zanguni. Nilikuwa na stocks 850 za benki moja inaitwa New Century nilizokuwa nimenunua kwa dola 20 kila moja. Stocks zile zikafanya vizuri sana na kukua hadi dola 120 na kitu. Kuelekea mwishoni mwa spring semester, nikawa buzy na mambo ya shule nikawa mzembe wa kushindwa kuangalia mwenendo wa stock kwa siku nne mfulilizo. Siku ya tano nikakuta stock zile zimeanguka kutoka dola 120 hadi dola 5. Nikadhani ni shock tu, kesho yake nikakuta stock zimebaki dola mbili tu. Wakati huo swala la subprime lending likawa hot issue sana na kwa uchungu nikashsindwa kuuza stock zile. Leo hii stock zile zina thamani ya senti 0.01!!!!

Pole sana Mwalimu Kichuguu, nitakutumia "ZiMpoku" nyama ya punda wa faraja uhemee