Financial crises: Signs of more to come?

In the recent weeks, we have seen oil again breach below the 100 dollars per barrel mark. The dollar barging into its one year high of Php 47:$1 since September 2007 against the Peso.

And now, we have big companies, financial institutions in the US in deep financial troubles, all blaming the mortgage crisis as the culprit.

Lehman Brothers, one of the larger US investment banks has filed a petition for bankruptcy. And then there is Bank of America acquiring Merrill Lynch in a USD 50 billion deal.

These events in the US would surely have an impact to other financial institutions and world economies.

Here in the Philippines, what might have the greater impact is the liquidity problem being faced by AIG. AIG is the parent company of Philamlife, one of the largest insurance companies in the Philippines.

We can only hope for better things to come, especially those with investments and insurance with these institutions.

~ by licruz on September 15, 2008.