Is the market at a bottom?

[emj]

Is the market at a bottom? ...From a friend

Boy, if I had a dollar for every time I was asked that question…….

Possibly, although we will not know for several weeks yet it may turn out to be that the close on the TSE of 9065 on Oct 10th just past, may be the market low. This is what I am hoping. Clients have asked me what would make a market bottom. The analysts I follow cite 3 events.
Lower and stabilized oil prices
The belief and conviction that the world banking systems have stabilized and are well backed by their respective governments.
A softening of the tight lending policy on the part of the banks so that companies and individuals who are good calculated risks can borrow money again at low rates.

In my mind, all 3 of these conditions have been met or are in the process of being met. Central banks and governments around the globe have flooded their banking systems with cash, and there is more where that came from, if necessary. By "flooded", I do not mean that the taxpayers' money is just being given away. Governments and Central Banks are buying quality assets, in most cases, at very depressed prices. In some cases they are even taking positions in ownership of their countries' own banks. In the past, these strategies have resulted in the Gov’t and hence, the taxpayer making a good return on their investments as the assets begin to climb in value and are sold off for a profit. In the US, over leveraged companies are collapsing and their assets are being auctioned off to the highest bidder or, weakened but fundamentally good companies are being absorbed into stronger partners.

To me these are signs to be optimistic. Why? Because the necessary steps are being taken, and rapidly, to avoid a total worldwide financial collapse. In addition, the US will soon have a new administration, one that hopefully, will curb the excesses of the previous regime and position legislation and regulations necessary to control the unbridled "wealth at any cost" mentality that has gripped the US financial system for the past 20 years. Leveraging without controls will be a thing of the past. We can only hope. Also, those responsible for irresponsible and unethical business behaviour will be prosecuted and sent “up the river". We can only hope. Perhaps the reason we do not see or hear more about who will be indicted and punished for their part in this mess is because governments are too busy, for the moment, protecting and fortifying their respective financial systems. For, without sound banks and investment firms in place, no country is secure.

If you read the economic reports that abound, we are in a global recession which will become worse before it gets better. I believe that. However, the stock markets do not run on identically the same track, Stock markets historically begin to rise several months before the economy emerges from a recession, and we do not know how severe or how long this current one will be.Some analysts believe the North American economy will begin to recover as early as 2009.

So it is because of this fact that, if we are at a market low, I believe it is time to buy quality stocks. Remember, the best bargains are almost always obtained in times of crisis and rarely if ever in the good times.

PS>.......

Advice on Value

Warren Buffett, widely regarded as the greatest investor the world has ever seen, makes no secret about what he values most – ‘Value’. And these days he sees value in a number of American equities. He wrote an article in the New York Times on Friday - a bold article titled ‘Buy American – I Am”. In the article, he states “I’ve been buying American stocks. This is my personal account I’m talking about. And if prices keep looking attractive, my non-Berkshire net worth will soon be 100% in U.S. equities”.

Given his secure financial situation, some may question his relevance in giving advice to the rest of us who have a few less zeros on the end of our account balances. But astute investors like Warren Buffet know there is no such distinction when it comes to fundamental investing principals like valuation - in other words, not overpaying for investments.

[Lotus Flower]

[QUOTE=emj;281871]Is the market at a bottom? ...From a friend



PS>.......

Advice on Value

Warren Buffett, widely regarded as the greatest investor the world has ever seen, makes no secret about what he values most – ‘Value’. And these days he sees value in a number of American equities. He wrote an article in the New York Times on Friday - a bold article titled ‘Buy American – I Am”. In the article, he states “I’ve been buying American stocks. This is my personal account I’m talking about. And if prices keep looking attractive, my non-Berkshire net worth will soon be 100% in U.S. equities”.

Given his secure financial situation, some may question his relevance in giving advice to the rest of us who have a few less zeros on the end of our account balances. But astute investors like Warren Buffet know there is no such distinction when it comes to fundamental investing principals like valuation - in other words, not overpaying for investments.[/QUOTE]


Word!

[emj]

From a friend of a friend.....TGIF...have a good one

We’ve heard the media buzz about “Leman Brothers fall”, “credit crunch”, “lack of liquidity”, “toxic assets”, “Libor rate”, and we saw firsthand the effects of these developments in stock markets around the globe. But then, we saw governments take action. The world seems to have responded in a very pro-active ways, such as yesterday’s pledge by the Canadian government to temporarily guarantee banks' medium and longer-term borrowing. So why are stocks still rallying? Why is the media still talking? Why hasn’t everything returned back to ‘normal’?

To spark economic activity, interest rate cuts are a measure used to stimulate economic growth over time. Typically, lower rates lead to increased lending by banks, which in turn revs up the economy through higher spending. Lower interest rates should also begin help to stabilize U.S. housing prices. The U.S. Federal Reserve has now reduced the Fed funds rate by 3.50% since the crisis began, with the Bank of Canada following with rate cuts of its own totalling 2.25% since last December.

To date however, the impact of rate cuts by the Fed has not trickled into the U.S. economy due to “frozen credit markets”. This term has been used a lot lately, but what does it mean and why is credit so important? Credit is like the oil in the engine of the economy - it's what allows people to start businesses and hire workers. It is very standard for corporations to borrow money on a short-term basis to meet their operating expenses - including salaries. If your employer can't meet those payments, that means that you may not get your salary, or you may get laid off. In the most extreme case, it could even mean complete shutdown of the business. Credit is also what allows individuals to buy houses or get a car. And just like a car, take the oil out of the economy's engine, and the engine stops working.

Instead of lending money out, U.S. banks are holding onto their cash to make their balance sheets look better – currently, a bank with cash assets is more trusted than one with mortgage assets of questionable value. Because banks are keeping their cash, funds available for lending are reduced.

The reasons behind the credit markets stalling are multi-dimensional and no single boost will get the economy back up and running overnight. Changes don't always have an immediate effect, and federal intervention may take time to trickle down and be felt in the economy. The good news is we have started to see signs that we are rolling in the right direction.

Recently, credit spreads - the difference between corporate and government bonds, and an indication of how willing financial institutions are to lend to each other - have been narrowing. This is an encouraging sign that government intervention is beginning to have an effect and brighten the economic outlook.

[emj]

Governments around the world are doing different things to try and put money into our pockets in order to stimulate the economy using monetary and fiscal policy.

Monetary policy involves the control of interest rates and the money supply. Typically, lowering interest rates or increasing the money supply results in increased business and consumer spending. This helps stimulate the economy, but also tends to exacerbate inflation. However, excessive inflation is not a major risk at the present time as the Consumer Price Index has shown easing of price increases in recent months. In fact, the U.S. Federal Reserve has been cutting rates for more than a year now and the rest of the world has joined in. Central banks in Europe and Asia have recently made rate cuts of their own and the Bank of Canada will be announcing its latest interest rate decision today (widely expected to be another cut). Interest rates are now approaching levels close to those that helped push economies out of recession earlier this decade. Interest rate cuts remain the single most effective tool to stimulate economies.


Fiscal policy relates to taxation and government spending. Of course tax cuts put more money in business and consumer pockets and we’ve seen such cuts in Canada and the U.S., but it’s government spending that directly creates jobs. This is why President Elect Barack Obama recently told "Meet the Press" that he will embark upon the most ambitious infrastructure program since Dwight Eisenhower created the interstate highway system in the 1950s. As for Canada, we are in a better position than any other country when it comes to our ability to spend. Canada’s National Debt to Gross Domestic Product ratio is the lowest among industrialized nations.

Yesterday markets rallied based largely on Obama’s comments and a proposed bailout of $15 billion for automakers. Also, our government is currently putting together a proposed 2009 Federal Budget that will include changes designed to lift the economy. No one knows exactly when economic activity will increase or when markets will turn.

From a Friend of a Friend with love

[Vokal]

Re: Govts around the world...stimulate the economy using monetary and fiscal policy.

--------------------------------------------------------------------------------

Quote:
Governments around the world are doing different things to try and put money into our pockets in order to stimulate the economy using monetary and fiscal policy.

Monetary policy involves the control of interest rates and the money supply. Typically, lowering interest rates or increasing the money supply results in increased business and consumer spending. This helps stimulate the economy, but also tends to exacerbate inflation. However, excessive inflation is not a major risk at the present time as the Consumer Price Index has shown easing of price increases in recent months. In fact, the U.S. Federal Reserve has been cutting rates for more than a year now and the rest of the world has joined in. Central banks in Europe and Asia have recently made rate cuts of their own and the Bank of Canada will be announcing its latest interest rate decision today (widely expected to be another cut). Interest rates are now approaching levels close to those that helped push economies out of recession earlier this decade. Interest rate cuts remain the single most effective tool to stimulate economies.


Fiscal policy relates to taxation and government spending. Of course tax cuts put more money in business and consumer pockets and we’ve seen such cuts in Canada and the U.S., but it’s government spending that directly creates jobs. This is why President Elect Barack Obama recently told "Meet the Press" that he will embark upon the most ambitious infrastructure program since Dwight Eisenhower created the interstate highway system in the 1950s. As for Canada, we are in a better position than any other country when it comes to our ability to spend. Canada’s National Debt to Gross Domestic Product ratio is the lowest among industrialized nations.

Yesterday markets rallied based largely on Obama’s comments and a proposed bailout of $15 billion for automakers. Also, our government is currently putting together a proposed 2009 Federal Budget that will include changes designed to lift the economy. No one knows exactly when economic activity will increase or when markets will turn.

From a Friend of a Friend with love

Originally Posted by emj

From a Friend of a Friend with love

I don't understand what planet (or, perhaps, cockatail of psychotropic substances) Nigeria's finance (senior and junior) ministers and Central Bank Governor are on and what they are doing apart from repeatedly telling us that the Nigerian banking sector and our economy are immune from the global financial crisis (a couple of them have since back-pedalled on their asinine comments but it makes you wonder what manner of simpletons are controlling our economy). When Soludo isn't busy congratulating himself for the consolidation of the Nigerian banking sector, he keeps saying that Nigeria's foreign reserves are safe. If they're that safe, how about telling us which investment bank is holding what and allowing us to make that determination based on the credit worthiness of each bank. It beggars belief that neither he nor the finance minister has seen it fit to provide Nigerians with this basic piece of information - months into the financial crisis that has seen final rites administered to some of the world's most revered financial institutions.

EMJ, as rightly pointed out in your thread #4, at times like these when economies are shrinking, any right thinking government should be doing everything within its power to jump-start its economy. That is, every government except ours in Nigeria. Let's take the Federal Inland Revenue Service. They form a central part of UMYA's 2009 Appropriation Bill (I believe that is what you were referring to in the two sentences following Obama's bailout plan for the automobile industry) and they are expected to increase tax collections (please see link to ThisDay article below).

http://www.thisdayonline.com/nview.php?id=129822

Surely, at this point in time, the federal government should be doing the exact opposite and even consider lowering individual and corporate tax rates. The bottom line is that the Government wants to preserve the bottom line at all costs in order to continue the "free-for-some" plundering that has been going on for years. How about showing a bit of good faith and reducing the amount of freebies that government officials have been feeding fat on for years - huge salaries, allowances, official bullet-proof cars, per diems etc - at the expense of the long-suffering Nigerian tax payer. They can't and they won't cos they're too damn greedy and the Nigerian tax payer is an easy target.

As if that isn't punishment enough, the global financial crisis notwithstanding the new electricity tariff that is meant to be introduced in phases beginning in 2009 is still very much on the cards (please see link to All Africa article below).

http://allafrica.com/stories/200810240756.html

Electricity tariffs are going to double for many consumers by 2011 and the finance minister wants us to believe the government's story that electricity generation will rise significantly to justify the tariff increase......how many times have we heard that one before?! Either these GIGs (goons in goverment) are on drugs or they must think that we are.

[emj]

Eherm, Vokal, we are all on Crack...the Nigerian Govt and da Governed...VQAS

Wait till the barrel of crude hits da all time low of 25dollars...then una go see real sh1t.

A friend was lamenting about how his bank stock that was at 12mill is not worth more than 4...he was crying just yesterday....they are all still cooking their books over there....if i had advised my friend to sell when his stock tripled in value, he would have called me all sorts of names...but right now he's sitting on the edge...No wahala...na to tell them to pass Drip through his veins...lol.

He said "every time we present Nigeria 's power problem to the World Bank in the U.S ; they always tell us "Oh they (Nigerian government) said the same thing 20 years ago

Gad dem, not dis WB people again...drat...Every household source for it's own power by hook and crook and in pain most of the time...how much is a Litre of Diesel? Who are the Generator Mafias...are they going to send them on Exile of what?

Seriously...what you have going on in Nigeria is Executive Lawlessly and Voodoo economics pure and simply... govt/s past and present have so Sapped the people that even Stock-Fish still has more power than us Nigerians.

Vokal, did you see this....another tunnel of wastage..
http://www.nigeriavillagesquare.com/...k-retreat.html

[Vokal]

Originally Posted by emj

Eherm, Vokal, we are all on Crack...the Nigerian Govt and da Governed...VQAS

Wait till the barrel of crude hits da all time low of 25dollars...then una go see real sh1t.

A friend was lamenting about how his bank stock that was at 12mill is not worth more than 4...he was crying just yesterday....they are all still cooking their books over there....if i had advised my friend to sell when his stock tripled in value, he would have called me all sorts of names...but right now he's sitting on the edge...No wahala...na to tell them to pass Drip through his veins...lol.



Gad dem, not dis WB people again...drat...Every household source for it's own power by hook and crook and in pain most of the time...how much is a Litre of Diesel? Who are the Generator Mafias...are they going to send them on Exile of what?

Seriously...what you have going on in Nigeria is Executive Lawlessly and Voodoo economics pure and simply... govt/s past and present have so Sapped the people that even Stock-Fish still has more power than us Nigerians.

Vokal, did you see this....another tunnel of wastage..
http://www.nigeriavillagesquare.com/...k-retreat.html

EMJ, I hear you o about the generator mafias! No be yesterday dem born us. As if they haven't screwed us for long enough - making gazillions in the process. You may be aware that one of the major diesel mafiosos now wants to venture into commodities which has caused a serious rift between him and another master economic rent seeker due to a tacit agreement that neither would enter the other's turf. Can you imagine, they are literally carving Nigeria up like a juicy rump steak while mosquitoes are biting the rest of us day and night.........!

You're absolutely right about the cooking that's taking place in the Nigerian stock market - especially in the banking sector where the financial authorities are looking the other way (and, needless to say, being seriously compromised in the process) while a number of major banks are staring at huge holes in their balance sheets having encouraged their clients to get carried away with margin trading. The more solvent banks know those they dare not place deposits with. To illustrate the seriousness of the situation, a friend's account officer at his bank committed suicide a few months ago when the value of her portfolio of Nigerian shares tanked. Many others, like your friend, are holding their breath, praying, fasting or doing whatever will get them through the day until the market recovers. In truth, I've never subscribed to the view that the Nigerian economy is a basket case (a nonsensical view that gained currency under Babangida). If anything, it is the perfect example to show that fundamental economic principles are alive and kicking. Reprehensible animals parading themselves as politicians (and their private sector accomplices) are simply manipulating the system to make a fortune at the expense of everyone else.

I had read the article about the Nigerian legislators' rumoured junket to the UK. What's new?! It goes with the territory for those jokers we call politicians and civil servants. I remember years ago when Nigeria was supposed to be negotiating favourable terms for Nigerian exports to the US under the African Growth and Opportunity Act (AGOA), a delegation from Nigeria went to DC ostensibly for that purpose. They came back empty-handed (at least as far as AGOA was concerned) because the only negotiations they did as they left the Watergate Hotel every morning was for discounts on their shopping bought with generous allowances courtesy of the Nigerian tax payer (this is a true story by the way). It makes you want to cry.

[emj]

I remember years ago when Nigeria was supposed to be negotiating favourable terms for Nigerian exports to the US under the African Growth and Opportunity Act (AGOA), a delegation from Nigeria went to DC ostensibly for that purpose. They came back empty-handed (at least as far as AGOA was concerned) because the only negotiations they did as they left the Watergate Hotel every morning was for discounts on their shopping bought with generous allowances courtesy of the Nigerian tax payer (this is a true story by the way). It makes you want to cry.

Vokal, please dont even remind me of the wasted opportunities...it's now a case of Weep not My Child....when we have Literate Illiterates leading us all by the nose...Greed, Long Throat, Jibiti is all that they know. Every Opportunity created or located to make life easy for the masses is always cornered by a few...and what do they do with it...Mess up Big time.

[Vokal]

Originally Posted by emj

Vokal, please dont even remind me of the wasted opportunities...it's now a case of Weep not My Child....when we have Literate Illiterates leading us all by the nose...Greed, Long Throat, Jibiti is all that they know. Every Opportunity created or located to make life easy for the masses is always cornered by a few...and what do they do with it...Mess up Big time.

EMJ, I know what you mean. A really sorry state of affairs....but having said that I think the wind of change is blowing. Nijas are getting angry, really angry, which may be the first of many steps towards finding a lasting solution to this madness. Do I hear an "Amen?!"

[emj]

Originally Posted by Vokal

EMJ, I know what you mean. A really sorry state of affairs....but having said that I think the wind of change is blowing. Nijas are getting angry, really angry, which may be the first of many steps towards finding a lasting solution to this madness. Do I hear an "Amen?!"

Vokal, ...the last time they got angry...they did nothing...do u think that they will get off their flat bum and do something? Naa
Ndi, Shamu and co am sure are making it like bandits...whilst their partners are dozing
The naira has fallen, selling for 139 to the dollar...serious round-tripping time....chei

PS>>>>>Back to my pulling out my hairs

[Vokal]

Originally Posted by emj

Vokal, ...the last time they got angry...they did nothing...do u think that they will get off their flat bum and do something? Naa
Ndi, Shamu and co am sure are making it like bandits...whilst their partners are dozing
The naira has fallen, selling for 139 to the dollar...serious round-tripping time....chei

PS>>>>>Back to my pulling out my hairs

EMJ, perhaps there's an element of wishful thinking on my part but I get a sense that the vitriol in Nigerians' comments these days when they talk and write about the hardship they are having to endure on a daily basis and their total disdain for the powers-that-be is like never before......because the extent of the hardship is like never before. The million naira question is what/who the catalyst will be to ensure that something gives. In the meantime, the rogues gallery you mention plus the banks will, regrettably, continue to fleece the system. You're lucky that you still have hair to pull out. I don pull my own comot tire.....considering a double cross-over hair implant!! Seriously, I'm a perennial optimist about the possibility of bringing about change more easily than we think....especially when the relatively small motley crew we want to flush down the toilet are, by and large, congenital idiots who pass the time getting high on their supply.

[emj]

Originally Posted by Vokal

EMJ, perhaps there's an element of wishful thinking on my part but I get a sense that the vitriol in Nigerians' comments these days when they talk and write about the hardship they are having to endure on a daily basis and their total disdain for the powers-that-be is like never before......because the extent of the hardship is like never before. The million naira question is what/who the catalyst will be to ensure that something gives. In the meantime, the rogues gallery you mention plus the banks will, regrettably, continue to fleece the system. You're lucky that you still have hair to pull out. I don pull my own comot tire.....considering a double cross-over hair implant!! Seriously, I'm a perennial optimist about the possibility of bringing about change more easily than we think....especially when the relatively small motley crew we want to flush down the toilet are, by and large, congenital idiots who pass the time getting high on their supply.

Eherm Vokal, wake up and explain this abracadabra summoning...i thought it was all rumor dat the pips in da upper house wia getting ready to flex their muscle....only to read dis in da Guardian...as Breaking News...hmmm..

UPDATED AT 18.00 GMT
Senate summons Usman, Soludo, others over falling naira
The adverse effects of the depreciating value of the nation's currency (the naira) were brought to the fore on Thursday as senators took turns to lament the economic hardships which Nigerians have been experiencing on account of the currency slump.(Nigerians?) To this end, members of the economic team of President Umaru Musa Yar'Adua have been invited to a special meeting of the committee of the whole Senate next Tuesday with a view to finding urgent remedies to the problems confronting the currency and the economy. Summoned are Finance Minister, Dr. Shamsudeen Usman, Central Bank Governor, Professor Chukwuma Soludo, the Chief Economic Adviser to the President, Dr. Tanimu Yakubu Kurfi and Director-General of the Budget Office, Mr. Bright Okongwu. The decision followed the adoption of a motion sponsored by Senator Felix Bajumo (Ogun State) and 24 others in which the attention of the hallowed chamber() was directed to the threats being posed to the country's economy by the depreciation in the value of the naira. "It is worrisome that the naira has depreciated in the last four weeks at a much faster rate than it had appreciated over the last two years. The cause of this depreciation is the consequence of the negative cash flow as a result of downward trend of oil price and further worsened by speculations in the foreign Exchange Market. The foreign exchange needs of the various sectors of the economy are not being made available. And worse still, our commitments in the global economy are not being met. The banking industry may be currently defaulting in global economy, " Bajumo said.

You're lucky that you still have hair to pull out. I don pull my own comot tire.....considering a double cross-over hair implant!!

My Colleague said to tell u to try weave-on....lol

[emj]

U.S. stocks declined the most in a week after lawmakers said a $14 billion plan to rescue the nation’s auto industry lacks the votes to pass the Senate and initial jobless claims jumped to a 26-year high. General Motors Corp. and Ford Motor Co. slid more than 10 percent. Bank of America Corp. slumped 11 percent and General Electric Co. tumbled 5.3 percent following government reports that 573,000 people applied for first-time unemployment benefits last week and the trade deficit grew 1.1 percent as exports decreased. Ciena Corp. plunged 20 percent, its steepest drop in three months, after the network-equipment maker posted a fourth- quarter loss.

Toronto's main stock index sank almost 3 percent on Thursday as oil and gas company EnCana Corp led a broad-based skid after it cut its capital budget, while nagging economic concerns hit financial shares. The S&P/TSX composite closed down with all 10 of its subindexes lower. Canada’s trade surplus narrowed for a second month in October as a weaker dollar boosted the cost of imports and more than offset a gain in exports of machinery. The surplus shrank to C$3.78 billion the lowest since January. The Statistic Canada lowered its estimate for the September surplus to C$4.25 billion from an initial reading of C$4.49 billion.


International Markets


Asian stocks rose, driving the region’s benchmark index to a fifth day of gains, as the U.S. moved closer to a $14 billion rescue of American car companies and South Korea cut interest rates to a record low. Honda Motor Co., which earns about 70 percent of its operating profit in North America, added 7.9 percent after the U.S. House voted to approve the emergency loans. KB Financial Group Inc. surged 7.8 percent in Seoul. Gains were limited by declines among steelmakers. Baoshan Iron & Steel Co. fell 3.7 percent after China’s exports dropped for the first time in seven years, while BlueScope Steel Ltd. plunged 26 percent in Sydney after selling stock at a discount.


Commodities & Fixed Income


Crude oil jumped 8 percent, the biggest gain in five weeks, after the Saudi Arabian oil minister said he had delivered the output cuts promised to OPEC, a sign that world supplies are smaller than traders had estimated. Ali al-Naimi, the Saudi minister, said in an interview that the kingdom pumped 8.493 million barrels of oil a day in November, close to its OPEC production quota of 8.477 million barrels a day. That’s 287,000 barrels a day less than estimated by the International Energy Agency.

From a Friend of a Friend.

Wish our Law-Makers will giddy-up and do something tangible..take a cue from their foreign counter-parts all over the world....anywaz, waiting to see/hear what Bajumo and his Group in the house will do next week.

[E_Pluribus_Unum]

wat bout the naira economy?

[Vokal]

Originally Posted by emj

From a Friend of a Friend.

Wish our Law-Makers will giddy-up and do something tangible..take a cue from their foreign counter-parts all over the world....anywaz, waiting to see/hear what Bajumo and his Group in the house will do next week.

EMJ, it looks like I've begun to infect you with my wishful thinking-itis as I believe I detected a hint of optimism in your thread that something positive might come out of next week's Senate hearing.

I came across a couple of articles in today's papers about the forthcoming (red) "herring." This one caught my attention.

http://www.nigeriamasterweb.com/NigerianNewspapers.html

Naira: Senate Summons FG’s Economic Team
From Sufuyan Ojeifo in Abuja, 12.12.2008


Worried by the continuing slide in the value of the naira against the US dollar, the Senate yesterday summoned members of the Federal Government’s Economic Team to appear before it to explain the development.
This is coming on the heels of the assurances by members of the team when they briefed the Senate on the global financial meltdown on October 21 that the development was not going to affect Nigeria adversely.

Finance Minister Shamsuddeen Usman, Central Bank Governor Chukwuma Soludo, the Chief Economic Adviser to the President, Dr. Tanimu Yakubu Kurfi, and the Director-General of the Budget Office, Mr. Bright Okongwu, who briefed the Upper House then, have been summoned to brief the Senate in the Committee of the Whole, next Tuesday.

Specifically, the Senate wants members of the Economic team to explain the worsening devaluation of the nation’s currency against the dollar.

EMJ, if the Senators need someone to explain to them why the naira is tanking then it simply confirms one's worst fears about the calibre of people in the corridors of power.....if, in years gone by, the blind were leading the blind, they are now leading the blind, lame and incontinent. That they bought the BS from Usman, Soludo and co, in the first place, about how Nigeria would miraculously be spared from the global financial crisis suggests that, among many other things, they don't understand that "global" is the operative word in that term.

This is how I see the hearing play out.

Senator B: "Gentlemen, what is going on? It wasn't that long ago that you told this very august body that Nigeria had nothing to fear from this financial meltdown of a tin. You said the banks were safe, the naira was as unshakeable as Zuma Rock but look at us today. Do you know what the naira is talking at the Sheraton Hotel?!"

Dr U: "Distinguished Senator, you are quite correct. In fact, in saying that we had nothing to fear from the financial crisis, I was simply echoing what Prof had said although I didn't quite understand his reasoning....in fact, I still don't. But you know that his reputation as the man with the Midas touch precedes him. I simply decided to extend that to include whatever comes out of his ars...I mean, whatever comes out of his mouth."

Senator B: "In case you don't know, I am an extremely serious somebody, as are my fellow Senators here present. We take people in positions of authority like yourselves very seriously. When you told us that our economy was kampe we believed you. Because of your assurances we decided to hold off converting our naira allowances into foreign currency to buy houses in London at give away prices. The same thing for the bullet-proof cars from Hummerica. Look at where we are today. It is embaraaazing."

Unnamed female Senator: "Senator, how about the jewellery that some of us were to buy from that closing down sale in Dubai."

Senator B: "Senator, I don't even want to talk about that one. It is too painful. My wife has not stopped abusing me because she had said that I should convert the naira to sterling weeks ago. To pacify her, I have had to agree to invite Lagbaja and Nnaeto C to perform at our daughter's 10th birthday party next weekend."

Professor S: "Distinguished Senators, firstly let me begin by apologising for the hardship you are undergoing which is due to the unprofessional conduct of some of our press boys. Honestly speaking, I was quoted out of context. I had been referring to a regression analysis that I had done using commodity prices in East Timor betweem 2001 and 2004 and simply giving best case scenarios for Nigeria without losing sight of the fact that the Bretton Woods institutions have clearly outlived their usefulness."

Senator B: "Oh brilliant, Prof....simply brilliant! You can take a bow and leave. Oh, silly me...ha ha. Please forgive me, you know that we recently concluded ministerial screenings. Your analysis and explanation are noted but can you assure my distinguished colleagues and I that something will be done to rescue the naira so that Nigerians will not be denied the realisation of their yearnings and aspirations."

Dr U and Professor S (in unison): "You have our word, Senator."

Senator B: "We can discuss the modalities for the proposed rescue plan at my daughter's birthday party to which you are all invited. In that case, there's no reason to prolong this hearing which I now declare closed. Please rise for the National Anthem."


EMJ, now you understand why I may be forced to take up your friend's suggestion about my hair!

[emj]

Originally Posted by Vokal

EMJ, it looks like I've begun to infect you with my wishful thinking-itis as I believe I detected a hint of optimism in your thread that something positive might come out of next week's Senate hearing.

I came across a couple of articles in today's papers about the forthcoming (red) "herring." This one caught my attention.

http://www.nigeriamasterweb.com/NigerianNewspapers.html

Naira: Senate Summons FG’s Economic Team
From Sufuyan Ojeifo in Abuja, 12.12.2008


Worried by the continuing slide in the value of the naira against the US dollar, the Senate yesterday summoned members of the Federal Government’s Economic Team to appear before it to explain the development.
This is coming on the heels of the assurances by members of the team when they briefed the Senate on the global financial meltdown on October 21 that the development was not going to affect Nigeria adversely.

Finance Minister Shamsuddeen Usman, Central Bank Governor Chukwuma Soludo, the Chief Economic Adviser to the President, Dr. Tanimu Yakubu Kurfi, and the Director-General of the Budget Office, Mr. Bright Okongwu, who briefed the Upper House then, have been summoned to brief the Senate in the Committee of the Whole, next Tuesday.

Specifically, the Senate wants members of the Economic team to explain the worsening devaluation of the nation’s currency against the dollar.

EMJ, if the Senators need someone to explain to them why the naira is tanking then it simply confirms one's worst fears about the calibre of people in the corridors of power.....if, in years gone by, the blind were leading the blind, they are now leading the blind, lame and incontinent. That they bought the BS from Usman, Soludo and co, in the first place, about how Nigeria would miraculously be spared from the global financial crisis suggests that, among many other things, they don't understand that "global" is the operative word in that term.

This is how I see the hearing play out.

Senator B: "Gentlemen, what is going on? It wasn't that long ago that you told this very august body that Nigeria had nothing to fear from this financial meltdown of a tin. You said the banks were safe, the naira was as unshakeable as Zuma Rock but look at us today. Do you know what the naira is talking at the Sheraton Hotel?!"

Dr U: "Distinguished Senator, you are quite correct. In fact, in saying that we had nothing to fear from the financial crisis, I was simply echoing what Prof had said although I didn't quite understand his reasoning....in fact, I still don't. But you know that his reputation as the man with the Midas touch precedes him. I simply decided to extend that to include whatever comes out of his ars...I mean, whatever comes out of his mouth."

Senator B: "In case you don't know, I am an extremely serious somebody, as are my fellow Senators here present. We take people in positions of authority like yourselves very seriously. When you told us that our economy was kampe we believed you. Because of your assurances we decided to hold off converting our naira allowances into foreign currency to buy houses in London at give away prices. The same thing for the bullet-proof cars from Hummerica. Look at where we are today. It is embaraaazing."

Unnamed female Senator: "Senator, how about the jewellery that some of us were to buy from that closing down sale in Dubai."

Senator B: "Senator, I don't even want to talk about that one. It is too painful. My wife has not stopped abusing me because she had said that I should convert the naira to sterling weeks ago. To pacify her, I have had to agree to invite Lagbaja and Nnaeto C to perform at our daughter's 10th birthday party next weekend."

Professor S: "Distinguished Senators, firstly let me begin by apologising for the hardship you are undergoing which is due to the unprofessional conduct of some of our press boys. Honestly speaking, I was quoted out of context. I had been referring to a regression analysis that I had done using commodity prices in East Timor betweem 2001 and 2004 and simply giving best case scenarios for Nigeria without losing sight of the fact that the Bretton Woods institutions have clearly outlived their usefulness."

Senator B: "Oh brilliant, Prof....simply brilliant! You can take a bow and leave. Oh, silly me...ha ha. Please forgive me, you know that we recently concluded ministerial screenings. Your analysis and explanation are noted but can you assure my distinguished colleagues and I that something will be done to rescue the naira so that Nigerians will not be denied the realisation of their yearnings and aspirations."

Dr U and Professor S (in unison): "You have our word, Senator."

Senator B: "We can discuss the modalities for the proposed rescue plan at my daughter's birthday party to which you are all invited. In that case, there's no reason to prolong this hearing which I now declare closed. Please rise for the National Anthem."


EMJ, now you understand why I may be forced to take up your friend's suggestion about my hair!

Oh ShootSomebody shoot me...Vokal, vokal warn yourself seriously...is it our Senator of No Regret Bajumo, Prof s and Dr U(all Ivy League) that you are Marinating like like dis...chei, i thought that am Badd, but you Sir, are Baddest/Baldest...Dang


On a less than serious note Sir Vokal...that's exactly what they've been doing.....going round in circles..blowing Hot Air without Pressure....Let's just give them small allowance this time that it will turn out differently.

They know that if they say it as it is, all the funds brought back in to shore up the economy and Bank consolidation will all return back to source....some have since been returned anywaz..after all da Shine shine Bobo drill.


As for your hair...u don't really need any...continue to enjoy the freedom that lack of it brings...at least everything is on the level...EQUITY...Equal opportunity.....(cant complete da sentence..hmm)

I'll leave you with this for the weekend...Cheerios

http://finance.sympatico.msn.ca/inve...entid=15853320

Wrath
Henry Paulson, U.S. Treasury secretary.

Paulson is not an angry man. But it seems he felt he had to punish somebody for the U.S. mortgage market meltdown, and Lehman Bros. (LEHMQ.N) happened to be first in line.

What Paulson hadn't realized was that this bit of retribution would plunge the world into downward spiral of doubt about the reliability of all credit instruments. If Lehman could go under, whom could we trust? Speaking of wrath, Paulson's flip-flop on the U.S. bailout policy (he rode to the rescue of Bear Stearns creditors, then turned his back on those holding Lehman paper) made him a focus of fury among investors who got burned. In Paulson's defence, the U.S. mortgage market mess could not have occurred without the concerted efforts of hundreds of Wall Street traders and executives focusing single-mindedly on lining their own pockets. A mess that big cannot be blamed on the mistakes of one man

[Vokal]

Originally Posted by emj

Oh ShootSomebody shoot me...Vokal, vokal warn yourself seriously...is it our Senator of No Regret Bajumo, Prof s and Dr U(all Ivy League) that you are Marinating like like dis...chei, i thought that am Badd, but you Sir, are Baddest/Baldest...Dang


On a less than serious note Sir Vokal...that's exactly what they've been doing.....going round in circles..blowing Hot Air without Pressure....Let's just give them small allowance this time that it will turn out differently.

They know that if they say it as it is, all the funds brought back in to shore up the economy and Bank consolidation will all return back to source....some have since been returned anywaz..after all da Shine shine Bobo drill.


As for your hair...u don't really need any...continue to enjoy the freedom that lack of it brings...at least everything is on the level...EQUITY...Equal opportunity.....(cant complete da sentence..hmm)

I'll leave you with this for the weekend...Cheerios

http://finance.sympatico.msn.ca/inve...entid=15853320

EMJ, thanks for your reassuring words. My uncharitable comments notwithstanding, I will be hoping that the economic team will leave the Senate with some redeeming features and that the Senators won't shoot themselves in the foot. Then again, if we're lucky maybe they'll miss the target and hit themselves in some more delicate areas. Meanwhile, I would suggest that you dust off your CV as I plan to petition UMYA to replace his entire economic team with you.

Thanks a lot for the Paulson article. Have a great weekend.

PS I'm still scratching my hairless head trying to figure out the remainder of the Equal opportunity sentence.....Ciao.

[emj]

Originally Posted by E_Pluribus_Unum

wat bout the naira economy?

E_Pluribus_Unum, wat about it? Is it not dey Kampe(not katamps).


PS>>>>Sir Vokal, me not ready to complete da sentence ojare..but sha Happy Weekend

[Vokal]

Originally Posted by emj

E_Pluribus_Unum, wat about it? Is it not dey Kampe(not katamps).


PS>>>>Sir Vokal, me not ready to complete da sentence ojare..but sha Happy Weekend

EMJ, thanks a lot and enjoy what's left of the weekend. Regarding the riddle, I'm an extremely patient guy so in your own good time....

[Austin]

Originally Posted by Vokal

EMJ, thanks a lot and enjoy what's left of the weekend. Regarding the riddle, I'm an extremely patient guy so in your own good time....

Emj and Vokal, between the two of you, I am lost and (not) found. What the heck are ya fellas tawkeying abot?