Dust Off From Demise

TRINA CANDELARIA
The Isotopes
Editorial Writing
September 23, 2008

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The world was stunned as the media exposed the frightful demise of two financial giants in the United States, the Lehman Brothers and the Merrill Lynch, followed by the earth-shattering exhaustion of the American International Group, the largest insurance company in the US.

This Wall Street financial meltdown worried a lot of investors from different countries. It's not just about America. It's also about the global economy. As the saying goes, "As America sneezes, the world catches cold."

Former Federal Reserve Chairman Chief Alan Greenspan marked at a query that this crisis has less than 50% chance of escaping recession. This calls for a more effective strategem coming from various sectors to prevent troubled subprime mortgages, extreme plunging home values, and credit default swaps.

Expectations for a quick end of this crisis are fading fast. Many financial companies, both local and foreign, are professing their corresponding losses. Some decided to dissolve their institution, some insisted that they are able to bring back their same old stabilized systems. Having a thorough analysis, these happenings imply a threatened economy to all.

These past few days, consecutive claims of bailouts and great amounts of rescues coming from AIG, and also from the American government, gave a much-needed breathing room for the countries prior to this serious business recession. They somehow took the risk of giving out large amount of money to counter the frightful implications of this tightening economy.

These bailouts, in reality, also do have limits. There would be a greater risk of unintended consequences. It may not be obvious now, but it might rattle our future undertakings. It would surely contribute a lot of consequences in decades to come.

This current catastrophic nightmare creates a minimal initial damage in our country. But, the future outcome of this economic downturn remains to be sketchy. The first step to attain a successful stabilization is to reassure the clients, bringing back their gradually lost confidence and trust in their partners' trade system.

Let's not be too chancy in taking the risks. Dependence solely in another country neither is the solution. Economic clash is possible to all, even the greatest and most systematic institutions from around the globe.

Let's storm the heavens in prayers and continuously hope that this seismic shock will be contained. This global crisis, attributed to be the worst after the 1928 clash, might first leave us the scar, and knock us down, but it isn't impossible for us to get up off the mat and dust ourselves off from this economic upheaval.