What are your thoughts on the recent financial meltdown that hit the US?
It resulted from the unchecked lust for profit that had subverted prudence in corporate management. The bailout sum is so huge, I expect the US dollar to dive. – C.B. Fundales, Bulacan
Business is like a wheel of fortune, umiikot lang. So expect US economy to rebound. – C.B. Manalastas, Manila
Dire need for financial reform in the US
The September 15 meltdown of the US financial market was the result of banker gangsters or “bankters” who engaged in accounting fraud, insider dealing and junk mortgage lending and the failure to relate the soaring debt overhead to the ability of debtors to pay. Fannie Mae and Freddie Mac, the two largest real estate firms in the US, lost $5.3 trillion before the US Treasury bailed them out. The Federal Reserve saved AIG by infusing it with $85 billion, but Lehman Brothers were not as lucky. It had to declare bankruptcy. My thoughts on the recent meltdown? There is a dire need for American and other world financial markets to irregulate and institute reforms on banking and financial activities to minimize its recurrence. – Robert Young Jr., San Juan
America’s banking system is collapsing. Over 300 US banks will not survive the next few years. Even this estimate may be too light. – Nick Ocampo, Angeles City
The New York Times editorial printed in The Philippine STAR Opinion section on September 21, 2008 described it well: “…It is the result of a willful and systematic failure by the government to regulate the activities of bankers, lenders, hedge funds, insurers and other market players.” We must learn from this experience. – Rey Onate, Palayan City
Famine after the war
The bad leadership of Bush led to the financial meltdown of the US. The series of wars between the Arabs and the US has brought famine. – Eric Gopilan, Manila
The financial meltdown is the devastating effect of Bin Laden’s spectacular attack on Manhattan Twin Towers seven years ago. – Benjamin Nillo, Las Piñas City
Why worry?
Our country has been melting from way before; a financial meltdown in the US won’t affect this generally melted country. It’s just another ordinary day. – Rico Fabello, Parañaque City
Is it a financial meltdown or just a momentary financial crisis? A wealthy nation, the US can’t allow a situation similar to the Great Depression to happen at this time, as it would be more catastrophic if she doesn’t act on it immediately. As expected, action taken to address the problem have now sent stocks soaring worldwide, including in our own Philippine Stock Exchange. So, why worry? – I.Q. Calata, Parañaque City
Financial meltdowns usually happen when projects of a previous regime are discontinued by a new administration. It’s not a new phenomenon. – Leandro Tolentino, Batangas City
In big and small businesses, the risk factor is always there. Too bad, lugi Intsik. – Rodolfo Talledo, Angeles City
While almost every country in the world is worried about the financial meltdown that hit the US, here in the Philippines, it seems like all is well. GMA is not pressing the panic button; instead, she’s going to the United States accompanied by 71 alalays. – Eufrocino Linsangan, Isabela
Overexposure to credit and real estate
The Americans charge everything as if there were no tomorrow – until they discover they are out of cash to pay for their loans and other bills. – Edwin Castillo, Tanauan City
The meltdown is the result of overexposure to real estate credit, unbridled stocks and futures trading. But this won’t be like the Great Depression of 70 years ago. They can bounce back in several months. – Nestor Buñag, Mandaluyong City
Don’t let greed get the better of you
A few years back, AIG head Maurice Greenberg was removed for accounting fraud. A few years after, the monster came back with a vengeance: It took all of $85 billion in federal funds to save AIG from collapsing. The US Treasury also infused $5.3 trillion to save Fannie Mae and Freddie Mac to save millions of home owners who stood to lose their homes. Unregulated financial activities heightened by real-time computer trading, unscrupulous bankers and stupid investors are responsible for this meltdown. My thoughts and advice to investors: Don’t let greed get the better of you. – C.K. Yeo, Iloilo City
The US financial meltdown is the end-result of greed and corruption. The difference between the American and Filipino style is that garapal ang kurakot dito. – Ed Alawi, Davao City
The financial meltdown in the US, which hit Wall Street and caused the legendary Lehman Brothers, Merryll Lynch, and the world’s biggest insurer AIG to crumble, is a consequence of insatiable rapacity. They keep eating up more money opportunities than they can chew. The same is true of banks that force credit cards on people, including car and housing mortgage loans. The meltdown will surely reverberate here, causing tremors that would affect our weak economy that is even more weakened by corruption of the highest form. Whenever Uncle Sam coughs, the whole world rocks. – Elpidio Que, Vigan
It’s just another case of too much greed gone haywire. Monies held in trust were invested in questionable transactions because of the promise of higher returns. – Manuel Abejero, Pangasinan
Our government should do something
A financial crisis is coming and the government should think of some relief measures to combat it. Except God, everything is unstable. – Digoy Coro, Batangas City
Even the most powerful nations are not immune
It only shows that even the richest and most powerful nations are not exempt from this kind of crisis. The rest of the world is affected, but since they have the means, they can easily solve the problem. – Danny de Leon, Al-Khafji, Saudi Arabia
Expect the worst. Even giant countries can’t get away from economic problems. – Lydia Reyes, Bataan
It’s unbelievable that reputable institutions of a superpower could go bankrupt. This causes panic and leaves a catastrophic impact against the US’ image of financial stability. – Concepcion Gaspar, Laoag City
It shows that even the No. 1 superpower in the world is not immune to the volatile nature of business. Our government’s response to it is more of bravado. – Jim Veneracion, Naga City
That the much-vaunted might of American financial institutions is not mighty at all. The US Federal Government has no recourse but to bail them out. – Rey Ibalan, Antipolo City
It proves that even US financial institutions are not invincible pala. Kapag nag-declare ng bankruptcy ang institutions like Lehman brothers, worldwide ang epekto. – Erwin Espinosa, Pangasinan
Don’t put all your eggs in one basket
One good lesson to be learned from the recent US financial meltdown is to not put your investments in one single holding company. Wise businessmen do not put their eggs in one basket. At this point, the US economy is feeling the heat of other emerging economies in Asia. Unfortunately, wala ang Pilipinas sa mga Asian countries na iyon kasi magulo ang pulitika dito. – Loi Castillo, Davao City
They’ll come out of it stronger
In the face of financial meltdown, the Americans remain optimistic and united. There was no fingerpointing or political bickering. President Bush, who is only a few months away from leaving the White House, is being supported by the Democrat-dominated Congress in rolling down $700 billion to salvage their nose-diving economy. It will not be surprising if they recover faster than expected. That is the American way of life: “Live and let live” and reliance on the spirit of “In God, we trust.” How I wish we could import that way of life and spirit. – Germi Sison, Cabanatuan City
Yes, the US could be experiencing a financial meltdown, but unlike us, they’ll fight and stand united and emerge stronger. – Ruel Bautista, Laguna
A big test on the US
The financial meltdown tests the US capability to cope with a crisis that creates far-reaching negative effects on the global economy. – Renato Taylan, Ilocos Norte
The US economy is resilient; it recovered immediately after the meltdown with government bailout. Had it not been for the remittances of OFWs, our economy would have dropped into deep abyss. – Vic Alim, Caloocan City
Shockwaves felt all over the world
The meltdown sent shockwaves all over the world as markets reacted as one global family and reeled from the blow that hit Uncle Sam. – L.C. Fiel, Quezon City
Kapag humatsing ang Kano, ang buong mundo ay dadapuan ng sipon at magkakasakit, di ba? – Col. Ben Paguirigan Jr., Ret., Zamboanga City
It’s inevitable due to market forces at work as dictated by capitalism: as the only superpower, if the US sneezes, the rest of the world catches a cold. – Leonard Villa, Laoag City
A struggle for US-based OFWs
I was thinking of the fate of our US-based Filipino workers. The slump in the US economy may trigger mass lay-offs of blue-collar employees. – Cris Rivera, Rizal
Obvious mismanagement
There’s an obvious mismanagement of financial institutions that resulted in bankruptcy due to the lack of vision and imagination by officials concerned. – Pedro Alagano Sr., Vigan City
Perhaps the financial empire of the US had reached its peak. – Eduardo Lozano, Nueva Vizcaya
If it happened here
At least they admit that there was really a problem and they are solving it, not like here, when there is a wrong, it is hidden from the public eye, and when the truth is exposed, they even make it appear that the whistle-blower is at fault. – Rose Leobrera, Manila
Evils inherent in the capitalist system
I believe that the current financial meltdown that hit the United States is a manifestation of the evils inherent in the capitalist system laid down by corrupt administrators and politicians with hedge funds to buy bad stocks that become good in a short time with manipulation. The Federal Government bails out financially distressed companies with taxpayers’ money to revive them and when revived, they can make profits again. After a generation or so, the rich profit again, and the cycle continues. – Josh Pacatang, Dipolog City
The US had it coming. Like Tibayan, Agrix and numerous other investments that divert men from their Buddha nature (soul) and placed too much faith in material instead of spiritual investments, they found the hard way that it is foolish to build your house on sand, because when the cookie crumbles, you are left holding the bag. As your Holy Bible said, for what shall it profit a man, if he gains the whole world but loses his soul? – Gerii Calupitan, Muntinlupa City
Fact mirrors fiction
I was struck by how it paralleled events in Tom Clancy’s Debt of Honor. It even shows that Uncle Sam had his share of financial woes, like Asia did in 1997. – Dino Monzon, Caloocan City
THINKING OUT LOUD
Why wasn’t our Bureau of Food and Drug not able to detect immediately that melamine is being used on imported milk from China? Just asking. – T. Sanez, Cavite City
Why don’t birth control proponents just promote abstinence, celibacy, chastity instead of contraceptives? No sex, no pregnancy. That simple. – Nito Aquino, Makati City
THE WAY I SEE IT
Consumers must be wary of cheap food products this Christmas season because they may contain harmful ingredients like melamine, and even formalin. – Edwin Castillo, Tanauan City
Views expressed in this section do not necessarily reflect the editorial position of The STAR. The STAR does not knowingly publish false information and may not be held liable for the views of readers exercising their right to free expression. The publication also reserves the right to edit contributions to this section as it sees fit.
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