Sunday, November 16, 2008

What should the banks do next? Part 2

Efficiency is one of the main drivers for any company. It is the increase of shareholder returns by delivering profits at reduced costs. Besides striving hard to generate the income (most banks are affected by the recent financial crisis) , they should take a hard look at reducing cost. Two main cost centers they should address are the operations and IT departments.

Through innovative use of technologies like utility computing and virtualisation, banks can reduce costs. and improved speed and service.

The Lehman brothers' saga provided the banks with invaluable experience and insight on communication and service quality. They should also take this opportunity to tighen the process of selling financial products especially if they are to continue offering complex derivative products. Care should be taken to balance risk and efficiency.

Read What should the banks do next? Part 1

What should the banks do next? Part 1

Based on Wikipedia, the free encyclopedia, A banker or bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money.

Of course, there is the treasury (investment) function which in recent years is the Cash Cow of most banks.

For many years, banks have been growing at break-neck speed. The tremendous growth has produced redundancies and inefficiencies. It was not a priority to be dealt with at that time. They were more concern with more growth, riding on unprecedented economic prosperity.

A series of U.S. legislative moves in the 1980s made subprime lending possible. Mortgage securitization made the banking scene more complex than ever. Eventually the bubble burst, the subprime-led financial tsunami swept through the world affecting the real economy.

What should the banks do next?

The banking institutions should go back to the basics and take this time to increase steady revenue (interest and non-interest income), reduce cost, increase efficiency and improve service quality.

*to be continued in part 2*

Are you ready for the next bull run?

No body seems to talk about Bull market nowadays.

Bull markets are born on Pessimism,

grow on Skepticism,

mature on Optimism,

and die on Euphoria.


The flaw of pure Buy & Hold Strategy

Those who do not discern what the analysts say,

who buy, hold and pray

will get poorer by the day.

Saturday, November 15, 2008

The root of the Credit Crunch

The world is under siege from one of the worst Financial storm in history.

The root cause is believed to be years of uncontrolled spending on credit.

No one wants to mention hot Buzz words like "Leverage" and "Nothing Down" nowadays.

The Credit Crunch Crisis is

the result of buying things you do not need,

with money you do not have, to impress people you do not know.

Don't Try to Time the Market, Either

I came across this good video clip (from Yahoo Finance), which i would like to share with you.

Is your work in vain?

There have been sad news all around. News of economic recession and retrenchment.

People around me are quite downcast. All their efforts (chasing after) and their dreams flushed down the drain. They fought, endured, worked their heart out but at the end of the day, achieved nothing significant.

Ask yourselves: is your chase, in vain?

At the end of the day, what matters?

If you pin your hopes on your job, it will disappoint you.

If you pin your hopes on money (or the wanting more of it), it will disappoint you.

It you pin your hopes on material things like big house, car, they will 'depreciate' away

"Therefore, my dear brothers, stand firm. Let nothing move you. Always give yourselves fully to the work of the Lord, because you know that your labor in the Lord is not in vain" (1 Corinthians 15:58).

Thursday, November 6, 2008

Show me the way I should go

Psalm 143
A psalm of David.

1 O LORD, hear my prayer,
listen to my cry for mercy;
in your faithfulness and righteousness
come to my relief.
2 Do not bring your servant into judgment,
for no one living is righteous before you.

3 The enemy pursues me,
he crushes me to the ground;
he makes me dwell in darkness
like those long dead.

4 So my spirit grows faint within me;
my heart within me is dismayed.

5 I remember the days of long ago;
I meditate on all your works
and consider what your hands have done.

6 I spread out my hands to you;
my soul thirsts for you like a parched land.

7 Answer me quickly, O LORD;
my spirit fails.
Do not hide your face from me
or I will be like those who go down to the pit.

8 Let the morning bring me word of your unfailing love,
for I have put my trust in you.
Show me the way I should go,
for to you I lift up my soul.

9 Rescue me from my enemies, O LORD,
for I hide myself in you.

10 Teach me to do your will,
for you are my God;
may your good Spirit
lead me on level ground.

11 For your name's sake, O LORD, preserve my life;
in your righteousness, bring me out of trouble.

12 In your unfailing love, silence my enemies;
destroy all my foes,
for I am your servant.

Tuesday, November 4, 2008

Pray for deliverance

Deliver me, O Lord, from my enemies;
I flee to You to hide me. (Psalm 143:9)

Sunday, November 2, 2008

The Original Law of Attraction

Because of who you are to us, O Lord,
people are attracted to you.

Like Abraham who was chosen by God to be blessed and to be a witness of His works. Abraham obeyed God's instructions, and because of his faith God blessed him richly.

Lord Reign In Me *

Over all the earth
You reign on high
Every mountain stream
Every sunset sky
But my one request
Lord my only aim
Is that you reign in me again

Lord reign in me
Reign in your power
Over all my dreams
In my darkest hour

You are the Lord of all I am
So won't you reign in me again

Over every thought
Over every word
May my life reflect
The beauty of my Lord
You mean more to me
Than any earthly thing
So won't you reign in me again

*Lord Reign In Me (by Cadet)

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