Friday, August 03, 2007

Why KLSE Dropped?

That is too drastic. A company that reported it is making money in the first quarter of this year is now closing doors and it is not even giving out subprime loan.

The latest bad news is that American Home Mortgage will file for bankruptcy and will no longer give out loan to applicants. The surprising news is that it only deals with high credit borrower.

Well, actually I'm not that surprised because from this March some people with insight into loan giving practise in the US speculated Alt-A loan may become the next crisis story. The people taking this loan don't have back-up their income with prove. So just fill on the dotted line what you number want to put. One can only wonder how many more will spill their beans in the coming 1st half reporting season

Seems to me the situation which happened during the internet crunch in 2000 is happening again, but now in a different sector.

All over the world, stock markets are becoming jittery and may drop more in the weeks to come and tagging along with them a small market named KLSE.

That's nearly happening even without factoring the Yen carry trade unwinding.


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