Tuesday, October 14, 2008

U.S. is confirmed a Banana Republic Status!

The world is in financial meltdown, that's really frightening but we are already further slipping in turmoil.

Here, the impact is already felt, Gulfnews today reports, UAE banks 'safe haven for foreign deposits'.
Bankers and economists are predicting a big boom in foreign deposits in the UAE following the government's decision to guarantee deposits in national banks regardless of the amount.

In terms of assets, the UAE banking system tops the list of Arab countries and other countries in the region. At this point in time, people urged not to listen to rumours that cast doubts over the credibility of the UAE local banks.

However, some mind boggling figures on our life-time Financial "Armageddon."

This is to confirm that US is a Banana Republic State.

Somebody sent an email of a list of the losses in market capitalization for 25 of the biggest financial's since their rough peaks in October 2007. Keep in mind that these companies were once the darling blue chips in the market.

These losses include:

  • A I G -Then: $178.8 billion... Now: $5.46 billion. Down 96.95%
  • Bank of America -Then: $236.5 billion... Now: $123.4 billion. Down: 47.82%
  • Citigroup -Then: $236.7 billion... Now: $76.34 billion. Down 67.75%
  • Merrill Lynch - Then: $63.9 billion... Now: $30.2 billion. Down 52.74%
  • Fannie Mae - Then: $64.8 billion... Now: $0.45 billion. Down 99.3%
  • Morgan Stanley - Then: $73.1 billion... Now: $41.1 billion. Down 43.78%
  • Wachovia - Then: $98.3 billion... Now: $19.44 billion. Down 80.22%
  • JP Morgan Chase - Then: $161 billion... Now: $130.2 billion. Down 19.13%
  • Capital One Financial - Then: $29.9 billion... Now: $16.9 billion. Down 43.48%
  • Washington Mutual - Then: $31.1 billion... Now: $3.64 billion. Down 88..3%
  • Lehman Bros. - Then: $34.4 billion... Now: $0.80 billion. Down 97.6%
  • Goldman Sachs - Then: 97.7 billion... Now: $40.6 billion. 58.7% Down
  • Wells Fargo - Then: $124.1 billion... Now: $111.25 billion. Down 10.35%
  • National City - Then: $16.4 billion... Now: $2.8 billion. Down 83%
  • Fifth Third Bancorp - Then: $18.8 billion... Now: $7.9 billion. Down 57.6%
  • American Express - Then: $74.8 billion... Now: $37.5 billion. Down 49.87%
  • Freddie Mac - Then: $41.5 billion... Now: $0.16 billion. Down 58.7%
  • Suntrust Banks - Then: $27 billion... Now: $16.07 billion. Down 58.7%
  • BB&T - Then: $23.2 billion... Now: $18.4 billion. Down 20.69%
  • Marshall & Ilsley - Then: $11.6 billion... Now: $4..48 billion. Down 61.3%
  • Keycorp - Then: $13.2 billion... Now: $5.68 billion. Down 56.97%
  • Legg Mason— Then: $11.4 billion...Now: $4.96 billion. Down 56.49%
  • Comerica— Then: $8.3 billion...Now: $4.74 billion. Down 42.89%
  • Countrywide Financial: Then: $11.1 billion...Now: $0.00 billion. Down 100%
  • Bear Stearns— Then: $14.8 billion...Now: $ 0.00 billion. Down 100%
Together these 25 companies alone have lost investors a total of $992,690,000,000 over the last 12 months... or nearly 1 trillion dollars.

The Americans had them too good for too long.

Reuters provides the gory details in "Canada Rated World's Soundest Bank System: Survey."
Canada has the world's soundest banking system, closely followed by Sweden, Luxembourg and Australia, a survey by the World Economic Forum has found as financial crisis and bank failures shake world markets.
But Britain, which once ranked in the top five, has slipped to 44th place behind El Salvador and Peru, after a 50 billion pound ($86.5 billion) pledge this week by the government to bolster bank balance sheets.
The United States, where some of Wall Street's biggest financial names have collapsed in recent weeks, rated only 40, just behind Germany at 39, and smaller states such as Barbados, Estonia and even Namibia, in southern Africa.
The United States was on Thursday considering buying a slice of debt-laden banks to inject trust back into lending between financial institutions now too wary of one another to lend.
The World Economic Forum's Global Competitiveness Report based its findings on opinions of executives, and handed banks a score between 1.0 (insolvent and possibly requiring a government bailout) and 7.0 (healthy, with sound balance sheets).
Canadian banks received 6.8, just ahead of Sweden (6.7), Luxembourg (6.7), Australia (6.7) and Denmark (6.7).
UK banks collectively scored 6.0, narrowly behind the United States, Germany and Botswana, all with 6.1. France, in 19th place, scored 6.5 for soundness, while Switzerland's banking system scored the same in 16th place, as did Singapore (13th).
The ranking index was released as central banks in Europe, the United States, China, Canada, Sweden and Switzerland slashed interest rates in a bid to end to panic selling on markets and restore trust in the shaken banking system.
The Netherlands (6.7), Belgium (6.6), New Zealand (6.6), Malta (6.6) rounded out the WEF's banking top 10 with Ireland, whose government unilaterally pledged last week to guarantee personal and corporate deposits at its six major banks.
Also scoring well were Chile (6.5, 18th) and Spain, South Africa, Norway, Hong Kong and Finland all ending up in the top 20.
At the bottom of the list was Algeria in 134th place, with its banks scoring 3.9 to be just below Libya (4.0), Lesotho (4.1), the Kyrgyz Republic (4.1) and both Argentina and East Timor (4.2).
1. Canada
2. Sweden
3. Luxembourg
4. Australia
5. Denmark
6. Netherlands
7. Belgium
8. New Zealand
9. Ireland
10. Malta
11. Hong Kong
12. Finland
13. Singapore
14. Norway
15. South Africa
16. Switzerland
17. Namibia
18. Chile
19. France
20. Spain
124. Kazakhstan
125. Cambodia
126. Burundi
127. Chad
128. Ethiopia
129. Argentina
130. East Timor
131. Kyrgyz Republic
132. Lesotho
133. Libya
134. Algeria

SOURCE: World Economic Forum Global Competitiveness Report 2008-2009.
(For the full World Economic Forum report click on:
here )

1 comment:

Pentilium5 said...

market capitalisation is like playing mahjong.... someone's gain is somebody else's loss, in the end of the game, the amount of money still the same right? thats the question asked by my 15 yr old son...