World wide Depression in 2009 looming as the US dollar collapses and more Banks go bankrupt

Reuters) - Merrill Lynch & Co's 10 highest-paid employees got a total of $209 million in cash and stock in 2008, up slightly from $201 million they received a year earlier, the Wall Street Journal said, citing reviewed figures.Andrea Orcel, the firm's top investment banker, was paid $33.8 million in cash and stock in 2008, the paper said.New York's Attorney General Andrew Cuomo has been investigating whether billions paid in executive bonuses at Merrill Lynch ahead of its takeover by Bank of America were sanctioned by the Charlotte, North Carolina-based bank.Eleven top executives were paid more than $10 million in cash and stock last year, the paper said, citing people familiar with the situation. Another 149 received $3 million or more, the paper said.The stock awards, which accounted for much of the compensation, have fallen sharply in value since they were made last year, according to the paper.Much of the 2008 pay came from bonuses, since base salaries for top Merrill executives generally ranged from $200,000 to $750,000, the paper said.Information reviewed by the Journal showed that some traders and investment bankers faced only small pay cuts last year, even though the Merrill units they ran posted significant losses.Merrill could not be immediately reached for comment by Reuters.Cuomo said last week that BofA Chief Executive Kenneth Lewis and former Merrill Lynch Chief Executive John Thain have obstructed and interfered with his probe into the bonuses.(Reporting by Ajay Kamalakaran in Bangalore, Editing by Muralikumar Anantharaman)

Local banks have been cutting back funding lines to US companies as credit risks have jumped sharply in recent days.Bank executives said local banks have been refusing to roll over their short-term credit lines to international clients, particularly US firms, as a result of the global credit crunch.Some banks are concerned that funding will simply be transferred offshore to help parent companies starved for cash. Other bank executives said the cutbacks simply reflected prudential lending practices as credit risks have jumped sharply.While liquidity remains plentiful in the local money market, global equities markets have nosedived as analysts express concern that the financial crisis will spark a full-blown recession as companies are locked out of credit.US and European banks, already suffering from declines in the value of the securities and mortgage loans, have cut back new lending due to capital constraints and fears about credit risk.Apisak Tantivorawong, the president of Krung Thai Bank and head of the Thai Bankers' Association, acknowledged that some banks were cutting back short-term lending for some clients.''This is normal practice under each bank's risk management system. Definitely the uncertainty in the local and global economic outlook has led to higher risks and lower loan growth,'' he said.He said that KTB, the country's second-largest bank, was maintaining its lending practices, but that rejection rates may rise as credit qualifications for borrowers fall with the slowing economy.Net lending growth in the third quarter would decline from the first half, Mr Apisak said, due to the slowing economy. The bank in any case still expects to post a net profit for the quarter, even after increasing provisions to fully cover its $160 million investments in offshore collateralised debt obligations.Political unrest and the violent clash between the People's Alliance for Democracy and the police this week had also affected already-weak investor confidence, which in turn would affect investment and consumption trends for the near future.''The private sector is definitely concerned about the political uncertainties. After the violence on Tuesday ... the country has no solution to the problems. This will only further affect confidence and the economy,'' Mr Apisak said.For now, loan quality remains relatively strong, although the trend is negative in line with the overall economy.''The bank's non-performing loans for the quarter are expected to be unchanged from the last quarter. The negative environment will affect distressed assets over the next six months, but we see the situation is still controllable,'' Mr Apisak said.Wiwat Kittiphongkosol, an executive vice-president of Siam Commercial Bank, said the bank was maintaining its loans to both local and foreign clients.''The US crisis has been limited to the financial industry, but the real sector has remained normal,'' he said.But SCB is taking a more cautious approach to trade finance and clearing letters of credit issued by foreign banks.Mr Wiwat said liquidity conditions would tighten and funding costs would increase due to global market turmoil. Bangkok Post source 9th Oct 2008

If you had purchased $1,000 of shares in Delta Airlines one year ago, you will have $49.00 today. If you had purchased $1,000 of shares in AIG one year ago, you will have $33.00 today. If you had purchased $1,000 of shares in Lehman Brothers one year ago, you will have $0.00 today. But, if you had purchased $1,000 worth of beer one year ago, drank all the beer, then turned in the aluminum cans for recycling refund, you will have received a $214.00. Based on the above, the best current investment plan is to drink heavily & recycle. It is called the 401-Keg.
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A recent study found that the average American walks about 900 miles a year. Another study found that Americans drink, on average, 22 gallons of alcohol a year. That means that, on average, Americans get about 41 miles to the gallon! Makes you proud to be an American!

FEBRUARY 2009: The Treasury Department overpaid for the assets it purchased as part of the $700 billion financial sector bailout, according to testimony of a bailout oversight official before Congress on Thursday. At a Senate Banking Committee hearing, Elizabeth Warren, head of the Congressional Oversight Panel, testified that the more than $254 billion in assets that the government purchased in 2008 are worth just $176 billion - $78 billion less than what Treasury paid for them. Congressional Budget Office estimated that the Treasury has lost $64 billion on its investments in the Troubled Asset Relief Program.

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Unemployment set to get worse in USA by 2m jobs this year and more in every country as the situation gets worse. General Motors has opened negotiations with the United Auto Workers to determine what concessions unionized workers will have to make to keep America's largest automaker from bankruptcy. The company has now received the first $4 billion of $9.4 billion in federal bailout funds, but has only until March 31 to submit a plan to the White House outlining the steps it will take to return to profitability. If federal officials are not convinced by the plan, they can recall the loan - forcing the company into bankruptcy. UAW resistance to wage cuts, according to some negotiators, was what killed an earlier auto bailout plan proposed in Congress in November

Our motto buy gold& silver while its low & maintain assets you have. Most of all don't borrow & keep control of your funds???

George Soros, the hedge fund legend and billionaire philanthropist, said on the 9th April 2008 the subprime mortgage crisis is likely to cause global losses of over $US1 trillion, characterizing the situation as the most severe since the Great Depression. It is now Sept and AIG, Lehmans, Bears & Stern, Washington Mutual Inc, Icelandic bank, California-based IndyMac Bank etc have collapsed and many more to follow. Analysts project another 150 banks could collapse.

We have yet to see subprime hit Thailand --- it will as the banks are saying nothing yet hiding behind a charade & the politicians are more concerned about getting ministries & fill their pockets more. Condos in Bangkok are plentiful and Property Investors are saying there is not enough condos here but they normally say this so people will invest. If you borrow you are in for a shock. If you have excess funds to play with OK but stay away from fund managers & hold on to your money --- better still listen to us and buy condos only not 30 year leases in Thailand under Estate managements and just buy what you need. But check out the condo and Company first if they have mortgages? The rest invest in gold & silver is our fix . [ Read more about Fund Managers ]

If you are unsure of a gem shop in Bangkok contact the Tourism Assistance Center, Tourism Authority of Thailand, Le Concorde Building, 202 Ratchadapiser Road, Bangkok 10310. Tel: 694-1222, ext. 1090-1094, or the Thai Gem and Jewelery Traders Association, 942/152 Charn Issara Tower, 15F, Rama 4 Road, Bangkok 10500. www.tgjta.com , email tgjta@mozart.inet.co.th or telephone 267-5233-6.

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