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Does RP Have A Golden Parachute?

October 13, 2008

Government, private, and even foreign financial and economic experts are saying in unison that the Philippines, with its economic fundamentals “relatively sound” will be able “to ride out” the the economic contagion that’s threatening to engulf the world, thanks to the greed-triggered collapse of such major institutions as Lehman  Brothers and the still uncertain positive effects of the 700-billion-dollar bailout package okayed by the US Congress.

Perhaps.

But will the Philippines really be able to avoid a ‘mini-meltdown’?

Even Singapore is now said to be going into a recession, while the Philippines’ own trade deficit i s ballooning and the only true buffer we have consists of the foreign currency remittances of our compatriot OFWs?

The government says it hammering out a plan to cushion a negative impct, but it concedes that the 7.2% economic uptick we chalked up could be cut to 4% or even lower depending on how Philippine companies are able to protect their earnings while keeping up production.

So there. Are we really on stable ground? Do we have a golden parachute somewhere with a rip cord we can pull?

Your Midfielder feels the worst attitude we can have is to be complacent as we are often inclined to be.

Let’s not panic but be vigilant and continue wo work hard in our own little corners.

Given the unclear situation the financial system appears to be in.

Depending on who you talk to, there are those clearly fearful of a run hitting two or more major uni-banks, while questions linger about where our foreign reserves are situated and how much value they have lost (not to mention the diversified holdings of the government pension fund, the GSIS, whose voluble boss, Winston Garcia, is looked at with distrust by many.But for his sake, and the millions of GSIS members, let’s hope Mr. Garcia is telling the truth, and making the right decisions.)

The Philippine Stock Exchange, which closely tracks the behavior of the US and the regional bourses, is likely to continue on its roller-coaster ride and the insider traders will go on with their merry ways.

As for our Juan dela Cruzes and Mang Pandoys, the situation will probably much stay the same as those on the lowest rung of our economic ladder will continue to do what they do best: survive.

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