Monday, 29 September 2008

European banks are falling like nine pins

Our passion to securitize every asset has brought this doomsday on us. This rush of securitization made speculators out of home owners and they thought that apart from staying in their houses they could also play the real estate game and speculate on their own homes, see what all this has gotten us into!
what next? the central banks will bank roll these banks in trouble and take the assets on its own books. So, now if you foreclose then you will turn over your house to the government. The govt of US is going to own a lot of homes in the next six months apart from owning the stocks of your homes. I read a few comments on this phenomenon and I think, the people who have been talking about very bad days or dooms day are simply frightening / scaring investors away. That's like telling your kid brother not to eat the chocolate saying that is tastes bad and slyly eating one yourself.
If you believe in your country's progress and the progress of your fellowmen. If you think that business can be conducted and profits can be made then go ahead and buy stocks. Buy stocks of companies that have been around for 25 years or more and don't worry about their immediate problems. This too shall pass!

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