Wall street recently crashed and banks folded. The biggest injection of funds from the Feds is arguably ineffective to put the brakes on recession. It is looming in the horizon or maybe it has arrived. Hedge funds exited from their gambling ventures. The big bubble from overspending, securitizing debts and unregulated speculations popped. Now oil is back in the 60 dollar-range. America drove 15 billions fewer miles last month. OPEC is cutting their production to optimize prize. Is the market stabilizing? Expect oil companies in the service sector to get hit especially those who have not secured long-term contracts. Massive investments have been channeled to build rigs and ships. If the oil price continues to go down and oil operators chew slower on their development projects, this would render the new-builts useless.
US college admission is plumetting. This is because thousands of American kids depend on financial aid and loans from banks and other institutions. If money is being channeled to fill in the holes left by the subprime mortgage and bankrupt banks, I gather there won't be much money left for kids to go to college. Doesn't help that tuition cost increases at 6.6% for the last 20 years. It is pricey to go to school in the US. Also, universities generate a huge chunk of their revenue from admission of international students. Because of the recession, expect a lower admission rate for the next few years. Students might choose a better destination the likes of Australia or Singapore.
Meanwhile, people are losing jobs especially in the financial sector. Expect low recruitment of fresh grads in the US for the next few years. Same thing across the causeway.
Back home, Bursa is getting killed and is now below 900 points.
Anwar is still trying to figure out how to get 30 MPs to jump the BN ship and still retain >60% Muslim MPs in Pakatan. By the time he figures that out, it'd be 2013 already, in time for the next election. Take your time Dato' Seri.
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