The US Stock Market Crash is all over the news. When I read the reports yesterday morning, I phoned mom to have a chat about it.
Two weeks ago, as soon as news of the AIG and Lehman Brothers bankruptcy came out, I told her to make withdrawals and keep the money right where she can see it (not that we have much and the withdrawals are exactly because we don't have much! lol). Actually, she was a day late. When the news came out, I never had the urge to give her a call to advise her what to do (although it was at the back of my mind already) because back in 2001, during the political turmoil the country was suffering from, she instinctively knew what to do - off to the banks. I was surprised when, during dinnertime, she told me she didn't make a pullout (I almost choked!). When I asked her why, she said a relative said it's (the AIG/Lehman) not a worry for the Philippines. Huwaaat??? I told her otherwise and advised her to secure what she needs to secure. The following day, thank heavens, that was the first thing she did.
Then came the bailout plan. Mom asked me again if it's okay to relax. I said, "Nopes." The way I saw it, the bailout plan - son of Tarp (Troubled Asset Relief Programme) - can be likened to trying to revive someone who has been declared DOA. True enough, the plan was rejected (there must be some wisdom into that refusal to approve) PLUS there's the US/Europe scare over bank nationalization; hence the market crash (with losses of USD1.2 Trillion).
Reports had it too that the Philippines is safe from the US crash. Totally disagree. Since when has the Philippines been unaffected by whatever was happening out there? Besides, as of yesterday, in a blink of an eye, this issue has turned into fears of a "global crash" already. That massive.
I'm not an economist. Admitted. I rely on intuition AND I read the yearly horoscopes when New Year's sets in. Haha! No bull. When January 2008 ushered in (and I blogged about this in my old blog site), I read Pluto is entering Capricorn. When I read that, the first thing that came to mind was "earthly possessions" (Capricorn). Pluto, in the world of astrology, is the planet that rules "deep transformation". Add the two and you see economic crisis forthcoming. The wheel of fortune turns. Age-old institutions, be it economic/business, religious or political, will have to make way for new ones. New empires will emerge, old ones will collapse. Powers shift. I need not go into elaborate examples. If you've been reading the papers and/or have been feeling the crunch the past few months since the oil crisis, inflation, recession, etc., that's Pluto entering Capricorn.
Not everything you see from horoscopes, you believe. But when I read them, I went with whatever I felt. The first quarter of the year set in and I've been egging mom to sell the 2.0L SUV and to buy another fuel-efficient car. After months of praying (the SUV was of a brand that was difficult to market PLUS its re-sale value is dismal!), a buyer came along. A month after and we're more liquid. I was soooo happy! (my intuition was on the up and up)
Couldn't be happier at the moment, too, since I'm on to the last payment for a big purchase I made last year (using my credit card; 12-months-to-pay purchase). Just right on time for the current crisis. Oh, yeah, I don't think we'll be hearing the end of it. It's actually just the beginning. The BF says, since last week, the marketing team of 6 different banks have visited their office to woo the big boss into opening an account with them. And the boss says to them, "Napapadalas yata kayo ngayon ng bisita ah." (read between the lines hehe) Well, the old man's a living proof of the saying, "wisdom comes with age." ;) Course, he knows!
Well, anyways, my advice really is: help the government, save up, cost-cut and spend wisely. Whatever is bound to happen is going to happen. Praying (let us!) though that we'll get through this one as smoothly as possible. In the meantime, let's all buckle up.
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