Wednesday, September 17, 2008

Walk the Talk

Years ago, before the Asian Financial Crisis. I thought the Philippines was in its best of times economically under the steward of FVR. We have not had the same atmosphere of positive economic outlook, momentum, and activities since then.

Though I complained on a daily basis the traffic created by the MRT construction at that time, I also though that the construction of the Mindanao train system would push through. And it was refreshing seeing Congressman de Guzman, Jalosjos et al. going to jail, a few Governors, and Mayors for corruption, actor Robin Padilla, etc.

Gone are those days of rule of law and economic momentum.

Anyway, during the Asian crisis that halted Philippine's economic momentum:

US and IMF among other's preached: Let market forces play. Do not bail out this, do not bail out that company. Let the ax fall to whoever made mistakes. Thousands of companies, including banks folded. Only Malaysia opposed the call.

The billion of dollars extended to Thailand, South Korea and others were made on condition that they allow ailing banks and other companies to collapse. No bail out allowed.

Recovery was fast and quick. Only the trusted, healthy, and strong survived.


However, when the US got its share of economic downturn, here's what they did and say: We are taking over Fannie, we are taking AIG, hehehehe. Got yah! They are too big to fail. Let others walk what we talk. We are an exception to the rule.


AIG is now a patient given a dose of Aspirin - hope the cold would go away.

Do you believe the cold will be gone? is he healthy now with 85B$ aspirin dose? Will you upgrade the credit rating now? are investors ready to jump in now? or jump out.

In the back of my head, the question is, is it cold or cancer? hehehe.