It doesnt come as a surprise for more financial institutions to freeze hiring and cut more jobs during such times of economic uncertainty. However, with the Euro debt crisis still pretty much hung in limbo, no one knows how many other financial institutions are highly exposed to the toxic euro bonds and investments and how the situation will pan out eventually.
Source: http://online.wsj.com/article/AP0a2a3308f3ba4e14ac93fa391df43758.html
Needless to say, the Euro has been dealt a massive blow and even though the biggest European economies pledged loyalty to the currency, it remains to be seen if efforts to salvage the situation will yield success. Fears of economic uncertainty, unfavourable job outlook has already shaken consumer confidence in many parts of the world as we plod with trepidation into the upcoming holiday season.
Already, economic gloom has been cast over Singapore’s most recent forecast. Non-oil domestic exports in October fell 16 per cent, more than double the market forecast of around seven per cent.
The electronics segment also fell 31 per cent year-on-year while non-electronics fell 6.7 per cent.
This would be confirmation, rather than simply indication that performances from various industries share the same sentiment that global economic performance would not be promising in early 2012.
As such, you might want to rethink if you were intending on splurging on a big purchase with your year-end bonus.
The Plunge is Coming
In fact, the likelihood of a stock market crash seems imminent, which would almost certainly trigger off a chain reaction that would affect all industries and retail investors who have a low risk appetite are advised to refrain from playing in the highly volatile stock markets. The number of financial institutions heavily exposed to such toxic investments remains by and large unknown. Most directions point to a total reset (think of the entire banking system being reviewed and loopholes plugged again circa Great Depression) rather than a “recession” due to the lack of banking regulations (subprime mortgage crisis, fractional reserve)in place and fundamentally unsound, unethical business practices that have led the world economy of today nearing total collapse.
In such tumultuous market conditions, many would park their money in treasury bonds, greenback and gold. So if you agree the economy is geared towards a re-set then perhaps you need to invest your spare cash in traditional safe havens and stay away from speculative investing
Source: http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1166097/1/.html
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