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When market sentiment was bearish, equities market would slump, just like what we seen for past few days. Global markets suffered yet another blow due to the uncertainties surrounding EU, where Greece may potentially exit European Union. Would Greece finally exit EU? This is an interesting yet important questions for investors. The headlines have been on the EU crisis recently, overshadowing the highly speculated Malaysia general election's date. Well, now would be a tough time for our Prime Minister to call on an election amid the gloomy global outlook. Maybe, the best time to hold an election already gone!!! Anyway, another interesting issue was the slump in Gold prices. Curiously, many investors questioning the different trend for gold prices. Normally, it will spike up along with the risk level of global equities market, together with USD. Theoretically, gold and USD would over-perform other asset classes during bad times. Yes, USD had already appreciated against a basket of c...

It's the time again for Greece to convince its counterparts that they are serious in cutting budget deficits. By doing so, Greece was to put on the lifeline (bailout) by European Union (EU) once again. The discussion of whether to save or not to save Greece had been dragging for one week time now. Why? In Chinese, we say "we cannot see people die by not lending our hand". That's why China said they will help when the time arrives. The question is when is the right time? Until Greece go bankrupt? Or,  until Greece left EU? Who can save Greece? The answer to this very important question is very obvious. In Christian, they always emphasize on " we should take responsibilities on what we did ", right? So, the solution lies in Greece hands. Not the country, but, the citizen, the people of Greece. It's time for them to come back to reality. Let's take Malaysia as a benchmark, they are working fewer hours than us, yet they are earning much better than us. G...

Well, many people already bored with the on-going Europe debt crisis, and subsequently liquidity crisis. This is like what we have seen in 2008 when Lehman Brothers collapses, which drags down the whole financial systems globally through liquidity crisis. The different is between company and country. Maybe some of us doesn't know how this chain effects rattles the global markets. So, let us start here. The European Organisation chart of Debts The root of the problem plaguing the market right now is Europe debt crisis , where Greece and few other European countries were highly in debts. They just simply cannot generate enough revenue (taxes) to support the economy itself. So, they resorted to seek for funding via borrowing by issuing sovereign bonds to finance their day to day operations. However, the debt is piling up intensively after 2008 global financial crisis until recently. Because the government does not have money, their bonds may go into default. So, they were forced ...

$1 trillion rescue package by European Union. Global share markets reacting positively towards EU latest move. Euro gains 2.7% in one day boosted by EU and IMF. European markets posted best one day gain this year. Sounds GOOD? This is the power of UNITY showed by EU countries during this round of financial meltdown. After a frantic talk on Monday, European officials agreed the 16 euro nations would put up $572 billion in new loans and $78 billion under an existing lending program. Meanwhile, IMF will pump in another $325 billion, adding up to a rescue package of nearly $1 trillion. However, many economists and analysts are still concern as to how the money would be dispensed and on what terms. A lot of them citing the euro rescue won’t solve the main problems plaguing the economies of Greece, Spain, Portugal, Ireland and Italy, which is low growth and weak balance sheets . Let’s enlarge the chart below ( you must ) to have a clear picture of the debt-ridden countries, taken from www....

With Greece having trouble, it is now pulling other assets too: US Dow Jones plunged as much as 9% on Thursday before recovering to end 3% down. MSCI’s emerging markets index lost 11% since mid-April. Crude oil price has fallen 14% over the past week, with Greek crisis putting the brakes on speculators as well as fears for Chinese growth. Commodities indexes have lost 5% in a week. The question in all investors mind this week would be: When would this stopped?   To contain the infections, Euro zone leaders decided on Friday they have special measures ready before financial markets open on Monday to prevent financial turmoil in Greece spreading to other countries such as Spain and Portugal.   However, European Commission President Jose Manuel Barroso declined to give any details of the proposals, which will be presented to all 27 EU finance ministers for approval on Sunday.     The EU summit, called to discuss longer-term efforts to coordinate economic policies, t...

After months of speculations and rounds of discussions, all the European Stars reunite at last, as shown in EU flag. On 12th April 2010, the euro zone nations have agreed on a Euro30 billion rescue package for their heavily-indebted partner - Greece. The finance ministers of the 16 European Union nations, who have euro as their common currency, finalized the details of their bail out plan for Greece. The annoucement comes amid mounting concern in the financial markets about the cash strapped Greek government's ability to service its staggering debts of more than Euro400 billion, thus, pulling down euro to very low level recently. How was the package like? Under the package, it will cover a 3-year fixed 5% interest loan and the amount of the loan could be increased over the next 12 months. The European loan is likely to be shared proportionally based on the breakdown of the ECB's capital. The IMF will complete the plan with a Euro15 billion loan at an adjustable rate based on th...