1.10.08

Economic Meltdown

The U.S.$700 billion dollar bailout package has finally been approved. Amidst the near collapse or 'suspended animation' status of the American economy, a ripple effect is in the offing. And it is going to hit hard where it will hurt a lot. What happens now to those with U.S. mother companies? Take the case of AIG-Philamlife.

I know so many friends who have staked their hard earned money both in insurance packages and educational funds. They do have a cause to worry. Phil-am top brass recently announced that some of its major assets locally are going to be sold to cover their $80 million dollar payables to its American parent company. There you go. I think no amount of Phil-am hand holding can minimize those sleepless nights among its plan holders.

As the potential for a US recession looms, an economic fallout is not far fetched. No one is immune. Very few are or has received shots of the anti-meltdown vaccine. Common sense therefore, dictate that there will be more belt tightening, resulting to a more subdued if not a slow down in the finance, retail and service businesses. Bad. Very, very bad :-(

I say, my economic meltdown started almost a year ago: diminished trips to the supermarket (less processed food, which is good, for a change), less elaborate eating pow wows, almost zero department store purchases, selling some of our stuff, recently moved to a smaller and less expensive place; but less trips to the doctor, and a switch to generic prescription drugs. Are there more coming?

Oh God!