So much have been happening in the year 2007, such as the shaking news on Sub-prime crisis which does have some moving factors to the financial sectors for the West & East.
Big names of global finance such as German Banks Sachsen and IKB Deutsche Industriebank, Citi of America and UBS of Switzerland are some of the big news appearing in the year 2007.
On the sub-prime crisis, into its 6-month, has caused many avalanches & getting Federal Reserves to consciously adjusting the rates, at least 3 rounds, is some big issue of concerned for the West as well as the East.
According to reports, between April last and this April, when it began to develop, this translated into US$34 billion of soured high-risk loans. That was enough to rock the roughly US$60 trillion American financial system its core.
At the recent news, the Organisation of Economic Cooperation and Development, or OECD, estimates that losses from the sub-prime fiasco could total US$300 billion.
We, a faraway country, Singapore, felt its rumble too. The MAS, said on Sept 17 , 2007 that the three local banks hold S$2.3 billion of collateralised debt obligations, of which 28% contain some US sub-prime loans.
All these making a very interesting year ahead for Asian financial markets.
So how do we look forward to the year 2008 ?
The US Treasury's recent rescue plans - to save the funds as well as to intervene in the mortgage rate-setting process - indicate that Washington thinks all these BIG firms are too significant to be allowed to fail.
What other indicators affecting the financial sector for consideration for looking forward to year 2008 ?
Will talk about it with the next follow-up...
Till then, if any comments to share, most welcome.
