Lessons for the Philippines from the US financial crisis
Author: Gloria O. Pasadilla, PIDS
September 2008 might well be considered the most traumatic period in recent financial history, with shocking unfolding one after the other. The US government-sponsored enterprises, Fannie Mae and Freddie Mac, went into conservatorship. AIG appealed to the US Federal Reserve Bank for a bailout. Wall Street stock prices plummeted. Financial titans like Merrill Lynch and Bear Stearns sought cover from the white knights, Bank of America and JP Morgan Chase, to avoid bankruptcy. Lehman Brothers disappeared from the financial map. And the US government committed approximately $1.4 trillion (so far) to bail out the financial sector. Although there is a greater measure of confidence now, economic conditions remain moribund and uncertain, at least until next year.
What can the Philippines learn from the global financial crisis? How does all this affect the Philippines?