Saturday, May 06, 2006

i keep on fallin'

today witnessed the largest single day drop in the history of the saudi stock market. it bottomed out at a near 10% drop in what has been a sequence of severe corrections which have resulted in a loss of nearly half its peak value. now i'm not going into the in depth socio-economic reasons behind it (i do that for a living). but this is what i want to say..

there is always a chance when investing that you'll make or lose money. the more money you can probably make the more money you can probably lose. it's very simple, high risk means high returns and high losses. so for the people complaining about losing cash on the market, it's the nature of the beast, you should've know what you were getting into.

oh and to the ever important question, when is it going to come back up? well the answer to that, is that it still has a good ways to go down. i just hope the authorities will do the right thing and let it sort itself out and not interfere too heavily, quick solutions will just make things worse in the long run.

Friday, May 05, 2006

as the world turns

the weapon of choice for muslims this new millennium is the "economic embargo". it started against american products (because israel was oppressing the palestinians), it then moved on to the french (because they outlawed all public displays of religion), then the japanese (for blasphemous toys) most recently it reached the danes (because one of their local newspapers published blasphemous cartoons). the recent embargo was very well organized with a monster ad campaign pushing it along.

these embargos of course only hurt local companies, normal workers in their home countries, future foreign investment and pretty much no one else. it is however a very clever way for the organizers to regain clout with the populace after they fell from favor following their recent terrorism rampage. a wise person said, control a man through his mind, a woman through her heart and people through their emotions.

now that the danes have been forgiven, i wonder who's next on the shit list? it has to be a faraway country in order to make use of xenephobia (no one flinched when indians burned down a major historical mosque), they must be much better off economically in order to capitalize on envy (witness muslims killing muslims in darfur) and they cant be arab 'cuz arabs are off limits (they've been jumping up and down about star academy yet no calls for an embargo). therefore, my prediction is that it's gonna be the chinese who are next on their list, you heard it here first!