Black eye for BI, DOJ?

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There were two alleged events that would seem to need immeidatet action from the heads  (The head leads the tails)

    1. Lengthy interview for an OFW bound to Israel causing the latter to miss her flight.

    2.  Escort service for a seaman costing P150,000

What happened to public service?

BI warns foreigners of scammers offering to fix   problems at BI

BI promises better services

Credit Suisse problem is a worldwide financial malaise?

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Ulongnuno on Credit Suisse malaise

Manila Times - bank fears spread to Europe

Credit Suisse share prices dived a quarter on account of bad news about Silicon Valley Bank closure

All ready the prices of shares of Paribas and Deutsche  Societe Generalebank dived.

France's Societe Generale SA dropped 12 percent at one point. France's BNP Paribas fell more than 10 percent. Germany's Deutsche Bank tumbled 8 percent and Britain's Barclays Bank was down nearly 8 percent. Trading in the two French banks was briefly suspended.

Credit Suisse is "a much bigger concern for the global economy" than the midsize US banks that collapsed, said Andrew Kenningham, chief Europe economist for Capital Economics.

It has multiple subsidiaries outside Switzerland and handles trading for hedge funds.

"Credit Suisse is not just a Swiss problem but a global one," he said.

Since the CSB has branches elsewhere in Europe and the world, its problems malaise is not confined to Switzerland but around the world.   Gladly the Swiss National Bank promised a liquidity support up to $54 billion

This post may bear marks of nega and being alarmist.  But is this the global collapse that pundits are predicting? Could this be the start of worldwide recession.  ?  Have we braced enough for this.?

Has our country institued countermeasures. ?  But surely not yet since we are so far away yet  

One of the aspects that we should be concerned about this is the foreign remittances by OFW.  With these bank malaise, banks may tighten lending and if closed cause domino effect on the industries they are supporting..   And this may mean reduced inward remittances   Lesser consumer spending locally

Bad for the local economy.  Should we not be concerned?  

Election watchdogs and other agencies should not have allowed candidates with previous cases or with arms cache

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Everyone is now agog over the political killings at an island province.  The violence could have been averted had the eection watchdogs disallowed the candidacy of the one being accused of being the mastermind.   The power accumulated could not have been brought to fore only since last election.  

This post believe so much in the statesmanship of someone who bore similar surname who headed the DOF before  The legacy has been marred. Sorry  

Top govt honchos blame bank officials for making the wrong calls

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White House Fed to blame for SVB closure

Elsewhere responsibility and even in this article on the shoulders of bank officials for making the wroong callls ie investing short term deposits in long term bonds  But who wants the company you are leading to fail to leave a bad legacy?  Or have enemies for making depositors lose their money?  None I guess

But SVB was in a tight squeeze, it could not have decided otherwise:

1.  It could not make loans to start ups who were awash with cash;

2.  It had no choice except to go long term to get higher returns to cover their costs and high liquidity level

The rest of responsibility lay outside  (Fed)

1   For loosening reins on money supply since debacle of 2008;

2.  For increasing interest rate lately to rein in money supply and inflation..  

SVB just could not take the strain from loose money to tight money supply high interest rate environmnet

Even investment in equitiies was a a nono  The stock prices were crashing.  

We just hope that even with CSB difficulties, the contagion does not spread to Europe and/or Asia

Bank stocks being pummeled world wide - could be the start of global recession, sell off, crisis"?

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Credit Suisse Bank woes

Reuters - support from Swiss National Bank to CSB

Three banks closed in USA:   Silvergate, Silicon Valley, and Signature (3S) All ready their closure sent jitters across the globe and contagion might be spreading   Excuse for sounding pessimistic but this is just being realistic.

The CSB (Credit Suisse Bank) dived 30% after its largest  stockholder said it was no longer supporting the bank   The second largest bank saw exodus of deposits of as much as $120 b fled its balance sheet.

While it had no liquidity issues yet, the Swiss Central Bank said it would come to the rescue. The bank is in this situation because of some scandals and bad decisions 

It is not unusual for banks to experience liquidity issues once there is a run (a mass withdrawal) because the fractional reserve system and of lending is not fully backed by 100% liquidty -  it is fractional, hence there will be shortage of funds

They say that when big banks in US and Europe sneeze, the rest of the world goes into convulsion   It is hoped that Asian banks, Philippines are in isolation rooms and would not be affected  ($300 billion asset size failure is not just a sneeze after all!)

Too much local autonomy and power a bad thing now?

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The recent trend has been for the local execs to wield more power and authority under the local code which allowed them to do so.

It is common to see the return of local powerful chiefs who are all mighty  You see them competing with locall businesses or terrorizing them Or worse as in the case of a representative in an island province allegedly  behind the hit of a governor.   Or so it seems

The ordinances and resolution in favor of new businesses requires zillions CIA

God bless them

How can a bank awash with liquidity fail?

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This is what precisely happened to Siliicon Valley Bank in the US -  the second largest bank to fail.  (The first is Lehman Brothers.   SVB has assets of $300B + 

The bank is awash from liquidity of start ups who got initial fresh funding from Venture Capitaists, and or are starting to bet positive cash flows from their ventures   

However since there were no borrowers yet, SVB was forced to invest in long term bonds (or some equities but which were wrecked by interest rate hikes)   Since the bond prices are inversely related to interest rates, their market value declined   They lost over $1B last year due to negative yields.   Their stock prices dropped, triggering a run.

Will morer be coming?

CIA at a infrastructure department

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This post met a multi billionaire, a lady a contractor at our infrastructure dept.  She is so wealthy that together with several others bought an island for a billion, has several billions of contract still outstanding.  The jewelry she was wearing when we met her was probaby in tens of millions.

Her secret?  CIA.  She is the lone contractor in the region who can still afford the CIA scheme of DE (It is risky what if the  contract does not push through?)

So who said that under DU30, there was no corruption and that he hated corruption.   It never stopped   And to think that Build3 is inflationary and is hurting us now

P750 minimum wage can fuel further inflation

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Inquirer - Petition for P750 minimum wage

We all need more money in the midst of inflation   But for the petition P750..00 minimum wage being petitioned several questions must be raised:

1.  Where will companies get this?   Simply add this to their cost of goods of sold and further jack up prices. ?  Consumers will end up getting less for the high wages?

2.  Can companies afford this increase in costs in the midst of inflation and recession?   The govt is increasing interest rates so that companies will not borrow, thus causing them to close and lay off employees   Cutting off jobs is a cruel way to solve inflation?

3.  More PHP in circulation will fuel more inflation    More php currency fuels inflation.   

This is going to be hard    We save on our expenses raise our food   WE have to go on survivalist mode

All ready slum areas are in areas like USA, Europe   We are thankful we still have jobs   Let us not push our fiscal resources to the limit.

Victim blaming

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This post did not quite understand this.  However when this post posted an article about his near misses, 2 in 2 days, a reader commented that something must be done for engaging in risky riding behavior despite having high vis.

This post took exception to this saying that he was careful and wants to avoid accidents.  It is painful to be hurt in accident.  No one wants to get hurt and will engage in a behavior that will hurt him. 

So that is an example of victim blaming - being a magnet for vehicles to buzz you by.   I hope it does not happen to the basher that really that there are motor vehicles who hate cyclists and will harm them.  (I hope this is not paronia.