By: Drizzt Another difficult working week, another difficult stock market to navigate. My portfolio have been taking a fair bit of the blunt lately and so far it has bled 15% in all. Quite a small figure compare to the broad market carnage but its understandable consider i am 50% vested right now. The bailout package have been passed and numerous economist have commented that its bad. But i gotta remind folks here that without that bailout, it can be much much worse! the entire credit market has freeze up! Even interbank lending in Singapore is jumping to an all time high. There is only bid, there is no offer. Even if there is, the cost to lend is much much higher. A good gauge of how difficult is to find funds is the deal that Berkshire Hathaway did to lend to Goldman Sachs and GE was done for them to receive 10% interest per year. In developing markets here (Asia), we are used to seeing it but these kind of rate emphasis how desperate financial institutions have become desperate for money. The possible next shoe to drop, could very well be a silent run of the banks. No, this does not start with your normal mom’s and pop’s queuing in front of the banks but firms pulling out funds from each bank. Read more...