Never thought before that one day I will write something in blogs ..But Having lot of free time could be the reason. I don't know how many people like economics,markets(stocks etc). But some point of time time everyone likes to talk about it when you see it on the front page of news paper. I want to share something .
We have gone through the turmoils in the markets globally since last 10 odd months after long so called boom for least 3 years . Everything was going right and suddenly a nightmare.Is happen'd so suddenly that credit crisis stroke wall street 'gallies'.Is it so fast that the GDP rate which was expected to cross 10% now went to less than 7.5%. Following the news and reports every normal investors like me started saying its all credit crisis in United states. But whats that crisis which tumbled all market fundamentals ,all IIOP and Growth number.profit figures and everything other booming factors.Just in span of week ,every fundamental was shaken like tsunami or in US language 'katrina'.Investment banks started writedowns of Billions of $s and started declaring losses.
This has not happened in a week or two.Any crisis can not happen so fast unless it is natural. One of the Top investment bank is US i.eBear stearns is declared as 'On sale' for unimaginable low share price(cost was less than mini burger price). Its all due to mortgages( can say type of home loan in America).Another on Sale bank is Lehman brothers which might never thought of this day in its glowing performance.The Quest is What Next ? ... These money maker suddenly went into dark night of credit crisis.What could be the reason? Do the businesses went wrong or government is responsible ? This crisis will continue how far .Is the worlds largest economy is so weak that it even did not come to know that what is cooking in the mortgage market and its its going to affect the globe as whole. None of the risk management team of these great banks come to about these risks. Then why the managers are paid so much ?What skills they are using to run the businesses ?Where are the market fundamentals,strategies. Where are the number crunchers.It all seems like speculation and playing around with market sentiments.No chart is coming true .No support.. only resistance .Where are we heading ? What Next ?
