[SGVLUG] OT: housing and bear stearns

[matti]

Hi,

I'm paying particular attention to this due
to the startup I am currently working for,
and wanted to share a bit more info of what
I have gathered.


interesting to look at the market movers today...
http://www.fool.com/
(holy smokes! .. 35-55% movement! talk about
instability! where's my wagering cap and
program of the horses?)

the central bankS! are attempting to stabilize
the system... (EU and US, where's Asia?)

Central banks fight credit crisis
http://news.bbc.co.uk/2/hi/business/7289815.stm

The world stock markets are getting
nailed on this one also... should make
for some very interesting times.

a few more interesting points...
(darn, I didn't save references.. )

larger tech companies (such as Oracle, Dell,..)
get about 5-10% of business from the financial
firms (the sector getting hammered.)

BofA purchasing County Wide (which btw is looking
for VMware techs.. guess to migrate the servers
to BofA servers)
JP Morgan purchasing Bear Stearns (hmmm.. I'm
guess now that the stock is trading at $6 some
people will be wanting JP to pay more than $2.. )

So, one article I read mentioned that that leaves
no large US businesses to buyout other banks/investment
firms which fail.

Which would mean that Asian/Middle Eastern institution/
countries may end up purchasing quite a bit of the US
at a discount when additional failures happen.

Looks like people are expecting the dollar to shrink
in value, as the Feds reduce the interest rate, that
means foreigners will not want to hold dollars, making
them cheaper on the world markets. Thus, you can expect
price increases on imported goods.

Likewise US made goods should be more affordable for
export.

best
matti



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