The PNP has transferred at least 40%

[Don1]

why would they need bail out if they didn't have loans in the local banks? There was no credit crunch for them as they could get funds from elsewhere.

If you remember even certain Jamaican entrepreneur pilot was caught flying a plane full a US dollars out a Ja(your good friend).

Bredrin, we are speaking here of financial institutions - they take people's deposits and invest - they largely don't use loan capital.

Many of the local deposit taking institutions invested people's money foolishly - using short term deposits to finance long term investments - ie a mismatch of assets and liabilities - that was the root of the problem in the financial system which contributed to the collapse (let's leave GOJ policy out of it right now for simplicity).

The foreign-owned and a few of the local institutions did not have this investment mismatch i.e. they were more prudent with handling their depositor's money.
In other words they had adequate risk management and survived.

Access to foreign capital was not instrumental to their survival - indeed they continued to repatriate capital (dividends) to their foreign owners throughout this period.

[Don1]

Don,

The CNB thing could be taken offline if you really wish.


Regarding the US fate, I agree the ROW is intricately tied to it. See the impact in Europe already from the sub-prime fallout (aka USA cash-Plus, LoL).

China was CREATED to be the US adversary and it was US firms and politicians (like Clinton selling them missile technology) that boosted up up to poster size in a very short time. In the 70s these people were lining up half a day for toilet paper and look at them now! This is deliberate global craft and the end game can be easily intuited from your last post. Everybody going down several notches. We going back to feudal times...maybe to the Dark ages.

How many airlines folded in the last 2 weeks? With fuel costs soaring, just what you think airfare will be in 2 years? Is like only millionaires will be able to travel to rhatid.

Its either we all regress or them scramble to have a new Bretton Woods and recast this colted game. Neither option will be painless, but the former would be exceedingly painful.

Don't see the new Bretton Woods shaping up - maybe after some global conflict with the winners slicing up the pie... I see a continuation of the current Wild West scenario - where it will lead- only Jah know.

Whatever happens - we're in for a wild ride which will get worse before things settle down.

One piece of advice - if you have children - make sure they have at least a passing acquaintance with Mandarin or Cantonese!

[Assasin]

Don while you are right in many cases don't discount the ability to move cash and having reserves when doing business.

Don't think for one second none of the overseas business didn't indulge, yes some may have done to a lesser degree but I would love to see their profit and loss and balance sheet for that period.

Some may have simple sold off their holdings as well as profit got less. All I am saying it was a rocky time and while the good managed companies survived, others with the resources also did survive but if you had to depend on funds from Jamaican source the chances of survival was very slim.

[Don1]

Don while you are right in many cases don't discount the ability to move cash and having reserves when doing business.

Don't think for one second none of the overseas business didn't indulge, yes some may have done to a lesser degree but I would love to see their profit and loss and balance sheet for that period.

Some may have simple sold off their holdings as well as profit got less. All I am saying it was a rocky time and while the good managed companies survived, others with the resources also did survive but if you had to depend on funds from Jamaican source the chances of survival was very slim.

ok boss - no problem with that.

as you said we need an objective analysis of all that happened to better learn the lessons.

respek

[Assasin]

Respect still brethren, love the line of reasoning.

The major problem I have with Jamaica is politics interfere in these things that proper studies can't be done or it is either one sided or try to please everybody on both sides and nobody get blame. We need to study these things so they will never happen again.

[Karl]

everything you said is true execpt "they stayed within their core competencies" some did not but survived.

You were the one who mention the greed so I am just stating that is normal for any entrepreneur but government legislation can curb that.

Many that survived had overseas capital sources that they could draw down from.

Give us some who stepped outside of core businesses...core competencies? ...name the core businesses and or competencies and the new area or areas (of businesses and or competencies) into which they ventured?

Let us see if there were any such...and if there were whether or not they already had mores that suited the new area(s)/venture(s) in which they ventured?