Now that America has chosen it's next president, what's next? As I watched how the world accepted president-elect Barack Obama as the 44th president, I can't help but wonder how much things would really change in the new administration.
As of this moment, it is not known yet if the US House and Senate will be filibuster proof. Though, we already know that the Democrats will be the majority. A filibuster proof majority would give the next president a blank check on implementing his plans.
A day after election, Russia has presented plans to install missile launchers close to the Polish border. Iran congratulated the incoming president. Hamas offered for a negotiation. These events only shows how the foreign policy might change under an Obama administration.
Two days after election, Dow dropped by 10%. Nikkei dropped by 5%. GM and Ford are running out of cash and lobbying congress for $50 Billion . Unemployment is on an 8 year low at 6.5% and might get lower to 8% by early next year. Home sales is still on a slump after a good month in September. Volatility is still in the 60s. These indicators also shows the economic challenges facing the new administration.
During these times, we can only hope for the best. The near future will be very challenging - not only for us, the middle class but especially for the new president. He will need our prayers and support. Right now, he needs our prayer for wisdom on how he selects his cabinet and staff. Also, let us always pray for protection for him and his family. God bless America!!!
Friday, November 7, 2008
Monday, September 8, 2008
Freddie and Fannie... saved to save
As of this morning, Freddie Mac and Fannie Mae have been federalized. This is a stockholder’s nightmare and a debtor’s dream. FNM and FRE have been diluted too much that their current value dropped to a few pennies above the dollar from a high of 60s. For the past two quarters, these firms have lost billions of dollars from mortgage write-offs. It was very clear that the government is going to intervene eventually. In spite of the denials from the Treasury Secretary early on that the government will not bail out these firms, the turnover did happen.
Bad for the stockholders. Investors who have not sold their shares yet have lost almost all value from their investment. The government take-over was bad for the investors. It diminishes the confidence of the investors. And it increases the risk for future investments.
Good for the debtors. At least, for the 50% of debtors whose mortgages are under Freddie and Fannie – the takeover means lower rates for an extended period of time. The government will infuse up to 100 billion for each firm. With the new funding, this could save the deteriorating economy and could convince banks to start giving loans again.
What’s ahead? Dow is currently upbeat by the news. Other than FRE and FNM, most of the financial stocks are up. Investors are becoming optimistic about the economy. Unfortunately, I remain cautious. Here are my reasons.
(1) Where will the government take the $200B? – From the taxpayers. With the current tax cuts, and promised more tax cuts from the presidential candidates… can the government really provide these funds? Watch out trade deficit.
(2) What about the other 50% of homeowners? Data shows that homeowners with good credit standing are currently missing monthly payments due to higher interest rates. I say it again, the housing crisis is far from over.
(3) What is the effect to the dollar? I doubt that injecting billions of dollars could strengthen the currency.
Though I don’t like the bail-out, I don’t think there was anything else that could be done. If the government did not act on this, a Freddie and Fannie crash will definitely lead to an Armageddon for the financial sector. What the government did is the lesser evil. Sacrifice the investors to save the debtors and by doing so, hopefully will save the economy. This is history in the making, and as a student in finance - a good opportunity to learn from such world changing activities.
Bad for the stockholders. Investors who have not sold their shares yet have lost almost all value from their investment. The government take-over was bad for the investors. It diminishes the confidence of the investors. And it increases the risk for future investments.
Good for the debtors. At least, for the 50% of debtors whose mortgages are under Freddie and Fannie – the takeover means lower rates for an extended period of time. The government will infuse up to 100 billion for each firm. With the new funding, this could save the deteriorating economy and could convince banks to start giving loans again.
What’s ahead? Dow is currently upbeat by the news. Other than FRE and FNM, most of the financial stocks are up. Investors are becoming optimistic about the economy. Unfortunately, I remain cautious. Here are my reasons.
(1) Where will the government take the $200B? – From the taxpayers. With the current tax cuts, and promised more tax cuts from the presidential candidates… can the government really provide these funds? Watch out trade deficit.
(2) What about the other 50% of homeowners? Data shows that homeowners with good credit standing are currently missing monthly payments due to higher interest rates. I say it again, the housing crisis is far from over.
(3) What is the effect to the dollar? I doubt that injecting billions of dollars could strengthen the currency.
Though I don’t like the bail-out, I don’t think there was anything else that could be done. If the government did not act on this, a Freddie and Fannie crash will definitely lead to an Armageddon for the financial sector. What the government did is the lesser evil. Sacrifice the investors to save the debtors and by doing so, hopefully will save the economy. This is history in the making, and as a student in finance - a good opportunity to learn from such world changing activities.
Thursday, September 4, 2008
Bottomed Out?
Since last November, Dow Jones was down more than 20% which indicated the start of the bear market; Shanghai Composite is down more than 50%; Philippine Stock Exchange lost about 40%. It couldn’t get any worst than it already is, right? One can only wonder if the market has already bottomed out and for the investor savvy – wonder if the timing is right to buy stocks which appear to be at a bargain price.
What kind of crisis exactly am I talking about? Primarily, the mortgage crisis which resulted to the financial turmoil of investment firms who bought securitized sub-prime loans. Unfortunately, the ripple effect also affected other financial firms even though they are not exposed to these types of loans. The Feds have to step in many times and reduce interest rate until it reached 2%, though it did not really help a lot because banks are not lending money. With interest rate so low, the dollar weakened and contributed to the dramatic increase in oil prices. From there on, it was a domino-effect. The impact of high oil prices is handed down by suppliers to the consumers. Suppliers and business owners increase prices and lay-off employees – which means higher inflation and unemployment rate.
Even though the oil price now has dropped to $110 from a high of almost $150, this doesn’t resolve the housing problem. A lot of homeowners are still at-risk of defaulting from their mortgages. With no jobs and higher prices, compounded with higher mortgage payments - is the economy about to turn around???
For those who are risk-averse, the time is right to start buying stocks. But be sure to diversify and avoid the financial sector. The financial sector continues to be very volatile. Other sectors are showing signs of a rebound. There is still not much confidence in the market and a single bad news continues to pull the market down. But if you want to ride the bull, I believe that the time is right to get those green bucks out of the closet and invest.
What kind of crisis exactly am I talking about? Primarily, the mortgage crisis which resulted to the financial turmoil of investment firms who bought securitized sub-prime loans. Unfortunately, the ripple effect also affected other financial firms even though they are not exposed to these types of loans. The Feds have to step in many times and reduce interest rate until it reached 2%, though it did not really help a lot because banks are not lending money. With interest rate so low, the dollar weakened and contributed to the dramatic increase in oil prices. From there on, it was a domino-effect. The impact of high oil prices is handed down by suppliers to the consumers. Suppliers and business owners increase prices and lay-off employees – which means higher inflation and unemployment rate.
Even though the oil price now has dropped to $110 from a high of almost $150, this doesn’t resolve the housing problem. A lot of homeowners are still at-risk of defaulting from their mortgages. With no jobs and higher prices, compounded with higher mortgage payments - is the economy about to turn around???
For those who are risk-averse, the time is right to start buying stocks. But be sure to diversify and avoid the financial sector. The financial sector continues to be very volatile. Other sectors are showing signs of a rebound. There is still not much confidence in the market and a single bad news continues to pull the market down. But if you want to ride the bull, I believe that the time is right to get those green bucks out of the closet and invest.
Wednesday, August 27, 2008
Loop-the-Loop
I wake up early in the morning to catch the 7:30 bus to the Loyola station. I read the Red Eye while riding the train and doze a bit once it goes through the subway. I stretch as the train reaches
What’s for lunch? Where should I eat? What day is it again? Monday? Then off to the Korean fastfood. Tuesday? Then we go Mexican. Wednesday? Let’s go Indian. Thursday? It’s sushi time. Friday? Sub or Salad?
Back to work by 1:00. What else needs to be done? Have you checked the Help Desk? See if there are accounts that need to be created. More deliverables? Tick-tock-tick-tack… code after code, and so it goes again.
Look how time flies. It’s now 4 in the afternoon. I better get ready for my night class. Am I prepared? I still need to read that chapter or two, and off to the Library I spend the next hour to catch up with the reading before going to class at 6.
By 9:30 I am already exhausted. Where’s the train? Why does it take so long for the train to arrive? Here it comes? Thank God I can now take a nap, but don’t get too comfy or I might miss my stop. At 10:15, I am back at Loyola… waiting for the bus home. If I am lucky, I am at my doorstep before 11.
What’s for dinner? Pasta or salad? Tonight, I’ll just have a yogurt and a cup of tea while I watch the 11pm news. By midnight, I am tucked into bed… ZZZzzzzzz
Saturday, June 14, 2008
Has it been more than a month?
Boy, look how time flies. It's already been more than a month since my last blog. The quarterly school term can be very demanding. With the weekly coding homework in data structures, simulations homework in monte carlo and bi-weekly exams in managerial economics… I am glad that it is finally over. Spring term is over.
But now comes summer term. By Tuesday, I will be attending summer class. I guess, four days of rest is enough vacation time. I need not complain. I didn't have four days rest before when I was still working. I'll say that I am excited about my summer class. After studying accounting and economics on my first 2 terms, I will now be learning financial management. This is a primer to a series of finance courses that I will be learning in the program.
Looking back to my spring term, it wasn't all academics. My father, sis and her family came to visit Chicago. Thanks to the more cooperative weather, I was able to check out some great places to eat in the loop area, lincoln park, magnificent mile and china town. I now understand why Chicagoans love Chicago. The torturous winter is nothing compared to the beauty of spring, and now the hot and steamy (I meant humid) summer. Last week, I went out to a movie with a friend. AMC River East 21 is just awesome. The seats are just like what we have in Greenbelt and the sounds are so real. There is just one more thing in my checklist I haven't tried out. I haven't visited any museums yet. I always pass by the museums but never had the time to get inside. Oh well, that's something I have to do this summer.
Meeting new people is always a wonderful experience. On my first day here in Chicago, I only know two people - my housemate and my bro's friend. But now, I hardly stay at home. On weekdays, there are projects and group activities in school; and on weekends, there are lots of church activities.
Life is indeed beautiful. And, I am glad that I chose Chicago.
But now comes summer term. By Tuesday, I will be attending summer class. I guess, four days of rest is enough vacation time. I need not complain. I didn't have four days rest before when I was still working. I'll say that I am excited about my summer class. After studying accounting and economics on my first 2 terms, I will now be learning financial management. This is a primer to a series of finance courses that I will be learning in the program.
Looking back to my spring term, it wasn't all academics. My father, sis and her family came to visit Chicago. Thanks to the more cooperative weather, I was able to check out some great places to eat in the loop area, lincoln park, magnificent mile and china town. I now understand why Chicagoans love Chicago. The torturous winter is nothing compared to the beauty of spring, and now the hot and steamy (I meant humid) summer. Last week, I went out to a movie with a friend. AMC River East 21 is just awesome. The seats are just like what we have in Greenbelt and the sounds are so real. There is just one more thing in my checklist I haven't tried out. I haven't visited any museums yet. I always pass by the museums but never had the time to get inside. Oh well, that's something I have to do this summer.
Meeting new people is always a wonderful experience. On my first day here in Chicago, I only know two people - my housemate and my bro's friend. But now, I hardly stay at home. On weekdays, there are projects and group activities in school; and on weekends, there are lots of church activities.
Life is indeed beautiful. And, I am glad that I chose Chicago.
Saturday, May 10, 2008
Kudos to DePaul
DePaul’s Part-Time MBA Program Springs Forward To Sixth In U.S.News & World Report’s Annual Rankings
DePaul University’s business school ended its spring break by springing forward in the annual graduate school rankings released by U.S.News & World Report March 28. The school’s part-time Master of Business Administration (MBA) program advanced three places to No. 6 in the annual rankings, which are closely watched by prospective students and colleges across the country.
“The fact that our program has appeared 13 times in the top 10 reflects our consistent dedication to offering working professionals a high-quality degree that helps them advance in their careers,” said Ray Whittington, dean of DePaul’s Kellstadt Graduate School of Business.
The majority of MBA students nationally study in part-time programs, which provide students the opportunity to earn degrees while holding full-time jobs. DePaul’s business students can choose to attend an evening, weekend or morning schedule of courses. The university’s multiple Chicago-area campuses and Internet classroom technology add to the flexibility.
DePaul’s part-time MBA program enrolls 1,583 students in 28 concentrations of MBA study taught by faculty members who bring a blend of scholarly achievement and real-world experience into the classroom. To complete their studies, students take 14 to 18 courses, depending on their level of undergraduate business education. Graduates benefit from the College of Commerce’s 50,000-strong alumni network.
In other rankings, DePaul’s College of Law was again rated by U.S.News among the top 100 law schools nationally and moved up to 88 from 91. U.S. News also noted the law school’s diverse enrollment.
U.S.News & World Report’s specialty graduate program rankings–such as the part-time MBA ranking–are based on survey ratings provided by deans and administrators at peer institutions. Highlights of the rankings are scheduled for publication in the April 7 edition of U.S.News & World Report magazine. Full rankings appear in the “America’s Best Graduate Schools 2009” guidebook and a premium Web site.
The U.S.News 2009 top 10 part-time MBA programs are:
1. New York University (Stern)
2. University of Chicago
3. Northwestern University (Kellogg)
4. University of California-Los Angeles (Anderson)
5. Georgia State University (Robinson)
6 (tie) DEPAUL UNIVERSITY (KELLSTADT), University of California-Berkeley (Haas) , University of Southern California (Marshall)
9. Southern Methodist University (Cox)
10. University of Michigan-Ann Arbor (Ross)
DePaul University’s business school ended its spring break by springing forward in the annual graduate school rankings released by U.S.News & World Report March 28. The school’s part-time Master of Business Administration (MBA) program advanced three places to No. 6 in the annual rankings, which are closely watched by prospective students and colleges across the country.
“The fact that our program has appeared 13 times in the top 10 reflects our consistent dedication to offering working professionals a high-quality degree that helps them advance in their careers,” said Ray Whittington, dean of DePaul’s Kellstadt Graduate School of Business.
The majority of MBA students nationally study in part-time programs, which provide students the opportunity to earn degrees while holding full-time jobs. DePaul’s business students can choose to attend an evening, weekend or morning schedule of courses. The university’s multiple Chicago-area campuses and Internet classroom technology add to the flexibility.
DePaul’s part-time MBA program enrolls 1,583 students in 28 concentrations of MBA study taught by faculty members who bring a blend of scholarly achievement and real-world experience into the classroom. To complete their studies, students take 14 to 18 courses, depending on their level of undergraduate business education. Graduates benefit from the College of Commerce’s 50,000-strong alumni network.
In other rankings, DePaul’s College of Law was again rated by U.S.News among the top 100 law schools nationally and moved up to 88 from 91. U.S. News also noted the law school’s diverse enrollment.
U.S.News & World Report’s specialty graduate program rankings–such as the part-time MBA ranking–are based on survey ratings provided by deans and administrators at peer institutions. Highlights of the rankings are scheduled for publication in the April 7 edition of U.S.News & World Report magazine. Full rankings appear in the “America’s Best Graduate Schools 2009” guidebook and a premium Web site.
The U.S.News 2009 top 10 part-time MBA programs are:
1. New York University (Stern)
2. University of Chicago
3. Northwestern University (Kellogg)
4. University of California-Los Angeles (Anderson)
5. Georgia State University (Robinson)
6 (tie) DEPAUL UNIVERSITY (KELLSTADT), University of California-Berkeley (Haas) , University of Southern California (Marshall)
9. Southern Methodist University (Cox)
10. University of Michigan-Ann Arbor (Ross)
Thursday, April 24, 2008
So True...
I got this link from a friend to find out what your personality is like, so I tried it and I THINK it turned out right.
Your view on yourself:
You are down-to-earth and people like you because you are so straightforward. You are an efficient problem solver because you will listen to both sides of an argument before making a decision that usually appeals to both parties.
The type of girlfriend/boyfriend you are looking for:
You like serious, smart and determined people. You don't judge a book by its cover, so good-looking people aren't necessarily your style. This makes you an attractive person in many people's eyes.
Your readiness to commit to a relationship:
You prefer to get to know a person very well before deciding whether you will commit to the relationship.
The seriousness of your love:
You are very serious about relationships and aren't interested in wasting time with people you don't really like. If you meet the right person, you will fall deeply and beautifully in love.
Your views on education:
Education is very important in life. You want to study hard and learn as much as you can.
The right job for you:
You have plenty of dream jobs but have little chance of doing any of them if you don't focus on something in particular. You need to choose something and go for it to be happy and achieve success.
How do you view success:
You are afraid of failure and scared to have a go at the career you would like to have in case you don't succeed. Don't give up when you haven't yet even started! Be courageous.
What are you most afraid of:
You are concerned about your image and the way others see you. This means that you try very hard to be accepted by other people. It's time for you to believe in who you are, not what you wear.
Who is your true self:
You are mature, reasonable, honest and give good advice. People ask for your comments on all sorts of different issues. Sometimes you might find yourself in a dilemma when trapped with a problem, which your heart rather than your head needs to solve.
Your view on yourself:
You are down-to-earth and people like you because you are so straightforward. You are an efficient problem solver because you will listen to both sides of an argument before making a decision that usually appeals to both parties.
The type of girlfriend/boyfriend you are looking for:
You like serious, smart and determined people. You don't judge a book by its cover, so good-looking people aren't necessarily your style. This makes you an attractive person in many people's eyes.
Your readiness to commit to a relationship:
You prefer to get to know a person very well before deciding whether you will commit to the relationship.
The seriousness of your love:
You are very serious about relationships and aren't interested in wasting time with people you don't really like. If you meet the right person, you will fall deeply and beautifully in love.
Your views on education:
Education is very important in life. You want to study hard and learn as much as you can.
The right job for you:
You have plenty of dream jobs but have little chance of doing any of them if you don't focus on something in particular. You need to choose something and go for it to be happy and achieve success.
How do you view success:
You are afraid of failure and scared to have a go at the career you would like to have in case you don't succeed. Don't give up when you haven't yet even started! Be courageous.
What are you most afraid of:
You are concerned about your image and the way others see you. This means that you try very hard to be accepted by other people. It's time for you to believe in who you are, not what you wear.
Who is your true self:
You are mature, reasonable, honest and give good advice. People ask for your comments on all sorts of different issues. Sometimes you might find yourself in a dilemma when trapped with a problem, which your heart rather than your head needs to solve.
Subscribe to:
Posts (Atom)
