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Wanted to go swimming with zhi zhong today but found out that the pool close on a tues... WTF? Took a bus to there to find out that its closed... And i suggested going to town or jp, he has the cheek to say No!!! Damn... So decided to go pioneer mall for mac and went home... Sianzzz...

Went for my checkup yesterday... For those who do not know what happened to me recently, i got high blood pressure... Yea i know its a condition which affects pple who are older like in their 40s or 50s... IN the end, i went for tonnes of checks for my kidneys etc and even got warded for one day for a 24 hr bodycheck and in the end, the results were good... There is nth wrong with my kidney and my arteries are normal which do not require me to have op. The doc says at such a young age, the reason why i got HBP is either hereditary or there is some tight blood vessels which they saw when they did a scan on my kidney but further tests shows that iam normal... So in the end, its hereditary and started me on a medicine which requires me to take for lifetime... But he says if my BP reduces, he might clear me and not let me take the medicine...

Anyway, long story short, my blood pressure (BP) reduced from a whooping 160 to 132... Lucky thing is my chlorestrol (good and bad) and triclycides (i dunno how to spell it, its smth to do with a certain blood content which increases if u eat too much pig organs etc and thank god i dun eat such gross food!) level are at a normal level... And i my weight actually went down..! I have to thank my parents for being by my side during my hospital stay... Thanks for buying U magazine, 8 days, bringing my hp, psp, the chargers (thats a little extreme) and they almost brought my whole room over... I still remember that day when i was needed to be warded i was so fuking shocked cox i thought i had kidney failure which turns out to be just regular check... Double relieve for me now... Everything is normal...

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Anyway with the recent spade of events which happened at the US, the buy overs, the fed's pumping american's tax payers money for a mistake which is caused by financial institutions including banks... For those who do nto understand what is going on, let me explain in simple terms... A few yrs ago pricing of houses shot up, thus ppl were greedy and wants to make a profit out of it... But due to the high prices, pple were not able to afford it thus financial institutions came up with a plan called the sub prime mortage which allow pple to afford to purchase these houses with a loan (plus interest) from banks... The banks require HUGE capital to provide full housing loans to these pple who wanted to buy the houses...

So, financial institutions starts getting greedy by not following risk-prevention procedures and anyhow loan money to pple who do not have credibiity (meaning they do not have the ability to actually return the loan should anything happen) so that they can earn money through loan interests.. Thus there was a housing boom!! Pple thought, each month pay only a few hundred so i can afford la... Then financial institution thought, the interest made from the loan and rising property prices is a trend and a wonderful opportunity to make money...

But they need capital to loan to these pple who actually could not afford to own houses right... So they approached investment banks such as lehman bros for capital... And they packaged these loans as a investment package and sell it to other financial institutions which may want it so that they can earn money through the interests which snowballed from the loan...

Alright iam only half way to the story.. Soon property prices fall these sub prime mortages is deemed worthless now... The loans made to these pple who could not afford to buy a home accompanied byt he high interests will lead to more defaults or fore closure (meaning declaration of bankruptcy or the inability to not be able to pay back the loans)... Since property prices dropped dramatically and pple were paying loans which were the pricing of the house when it is at its prime and thus not willing to continue with the loan...

Uncertainty of the sub prime mortage market led pple to lose confidence in the market... Banks which provides the capital starts to impose strict credit criteria which lead to reduction of capital... Without captital a company cannot amke investments thus losing potential revenue...

Back to the fall of sub prime property prices... Pple were trying to sell it or default the loan s house prices dropped... Thus some owners of the house declared bankrupt so that they do not have to pay the loan... While others are not able to pay the loan...

So now the houses which the banks package into investments all lose money... For exmaple when economy is at its prime, the house is worth 800000 US dollars thus the even if the owner were to declare bankrupt, the value of the house is there...

But now the value of the house dropped to 200000 US dollars thus the loss of 600000 US dollars. All these sub prime mortage investments involve trillions of dollars and these sub prime mortage investment package affect those financial institutions who bought the investments and provided the capital... Thus they lose profit and the capital when the person who bought the house is declared bankrupt...

And the problem spirals, as more house owners are declared bankrupt or default payments to bank to repay their loans... Now the banks are not willling to provide capital loans to financial institutions and as these investments lose money, they lose their credibility.. Pple who invest in shares starts losing confidence and sell their shares in a bid to regain some part of their money... Lost in confidence leads to fall of stocks which leads to insufficient capital and they are forced to stop all investments... And ta da... Bankrupt... Which is the fate of housing finance company such as Fannie Mae and investment banks such as Lehman Bros and Merill Lynh...

Alright i know u guys are pretty bored but this is just a basic understanding to the problem in US now... As US faces these crisis, tax payers suffered, more unemployments occur, the americans lack the ability to spend thus the fall of exports in Singapore... And globally these repackaged sub prime mortage investments which allowed financial institution to buy them earn profit through interest paid by the loan are losing its feet, companies from around the world also lose money... But American government were able to restore prestige and liquidity to market through investing few hundred billions of US dollar to liquidate market...

Disaster may be averted but the problem may still spiral...

THE END...