Thursday, November 6, 2008

Why Obama Won

http://usliberals.about.com/od/obamavsmccainin08/a/ObamaWin.htm

Nov 5 2008


Barack Obama decisively won the presidential election, for many solid reasons and due to many factors, including weaknesses of his Republican opponent, Sen. John McCain.

This article enumerates and explains five top reasons why Obama won win the 2008 race to become the 44th President of the United States.


Reason #1 - Empathy and Genuine Help for Middle-Class Americans

Barack Obama "gets" what it means for a family to worry financially, to work hard simply to make it, and to do without essentials.

Obama was born to a teenage mother, abandoned by his father at age two, and raised largely in a small apartment by his middle-class grandparents. At one point, Obama, his mother and younger sister relied on food stamps to put meals on the family table.

Michelle Obama, close counselor and best friend to her husband, and her brother were similarly raised in modest circumstances in a one-bedroom apartment on the south side of Chicago.

Both Barack and Michelle Obama speak frequently about what it means for middle-class Americans to be at a disadvantage financially and otherwise.

Because they "get" it, both Obamas refer with heartfelt eloquence to middle-class fears, including to:

-the climbing unemployment rate
-the staggering home foreclosure rate gripping the nation crashing 401(k) and pension plans, leaving retirements in limbo
-48 million Americans without health care insurance
-high percentages of public schools failing our children
-the continuing struggle of middle-class families to balance work and parenting demands

In vivid contrast, John and particularly Cindy McCain exude an aura of financial insularity and well-heeled elegance. Both were born wealthy, and have been quite wealthy for their entire lives.


When cornered by Pastor Rick Warren several months ago, John McCain defined "rich" as " I think if you're just talking about income, how about 5 million."


Middle-class anger is palpable about economic fairness in these unusually tough financial times, and subsequent to what many view as President Bush's $700 billion bailout of rich Wall Streeters, .


Obama offered actual, understandable policy solutions to help middle-class Americans, including:
-a detailed 12-point program to repair the economy for middle-class families, including a $1,000 tax cut, creation of 5 million new jobs, protection of family homes from foreclosure, and reform of unfair bankruptcy laws.
-a Small Business Emergency Rescue Plan which includes emergency lending for small and family-owned businesses, special tax incentives and tax cuts, and expansion of Small Business Administration support and services.
-a specific plan to reform Wall Street practices, including new regulation of the financial markets, to blunt the greedy influence of special interests, crackdown on manipulation of financial markets, and more.

John McCain's tin ear on middle-class financial woes were evident in his prescription for the economy: more tax-cuts for major corporations, and continuation of the Bush tax cuts for U.S. millionaires. And this McCain stance is consistent with his stated desires to slash Medicare and privatize Social Security.


The American public is fed-up with failed Bush/McCain economics, which claim that prosperity will eventually "trickle down" to everyone else.


Obama won the presidential race largely because voters correctly perceive that he, and not John McCain, care about and will address middle-class economic struggles and inequities.

Tuesday, November 4, 2008

Full Speech of Barack Obama

http://www.youtube.com/watch?v=Wh5VjEjT12c

http://www.youtube.com/watch?v=WI7B-V0GnJw

Herewith is the full text of president-elect Barack Obama's victory speech Tuesday before a crowd of some 125,000 cheering and tearful supporters:

The Star

"If there is anyone out there who still doubts that America is a place where all things are possible; who still wonders if the dream of our founders is alive in our time; who still questions the power of our democracy, tonight is your answer.

"It's the answer told by lines that stretched around schools and churches in numbers this nation has never seen; by people who waited three hours and four hours, many for the very first time in their lives, because they believed that this time must be different; that their voice could be that difference.

"It's the answer spoken by young and old, rich and poor, Democrat and Republican, black, white, Latino, Asian, Native American, gay, straight, disabled and not disabled Americans who sent a message to the world that we have never been a collection of Red States and Blue States: we are, and always will be, the United States of America.

"It's the answer that led those who have been told for so long by so many to be cynical, and fearful, and doubtful of what we can achieve to put their hands on the arc of history and bend it once more toward the hope of a better day.

"It's been a long time coming, but tonight, because of what we did on this day, in this election, at this defining moment, change has come to America.

"I just received a very gracious call from Senator McCain. He fought long and hard in this campaign, and he's fought even longer and harder for the country he loves. He has endured sacrifices for America that most of us cannot begin to imagine, and we are better off for the service rendered by this brave and selfless leader. I congratulate him and Governor Palin for all they have achieved, and I look forward to working with them to renew this nation's promise in the months ahead.

"I want to thank my partner in this journey, a man who campaigned from his heart and spoke for the men and women he grew up with on the streets of Scranton and rode with on that train home to Delaware, the Vice President-elect of the United States, Joe Biden.

"I would not be standing here tonight without the unyielding support of my best friend for the last 16 years, the rock of our family and the love of my life, our nation's next First Lady, Michelle Obama. Sasha and Malia, I love you both so much, and you have earned the new puppy that's coming with us to the White House. And while she's no longer with us, I know my grandmother is watching, along with the family that made me who I am. I miss them tonight, and know that my debt to them is beyond measure.

"To my campaign manager David Plouffe, my chief strategist David Axelrod, and the best campaign team ever assembled in the history of politics you made this happen, and I am forever grateful for what you've sacrificed to get it done.

"But above all, I will never forget who this victory truly belongs to it belongs to you.

"I was never the likeliest candidate for this office. We didn't start with much money or many endorsements. Our campaign was not hatched in the halls of Washington it began in the backyards of Des Moines and the living rooms of Concord and the front porches of Charleston.

"It was built by working men and women who dug into what little savings they had to give five dollars and ten dollars and twenty dollars to this cause. It grew strength from the young people who rejected the myth of their generation's apathy; who left their homes and their families for jobs that offered little pay and less sleep; from the not-so-young people who braved the bitter cold and scorching heat to knock on the doors of perfect strangers; from the millions of Americans who volunteered, and organized, and proved that more than two centuries later, a government of the people, by the people and for the people has not perished from this Earth. This is your victory.

"I know you didn't do this just to win an election and I know you didn't do it for me. You did it because you understand the enormity of the task that lies ahead. For even as we celebrate tonight, we know the challenges that tomorrow will bring are the greatest of our lifetime, two wars, a planet in peril, the worst financial crisis in a century.

"Even as we stand here tonight, we know there are brave Americans waking up in the deserts of Iraq and the mountains of Afghanistan to risk their lives for us. There are mothers and fathers who will lie awake after their children fall asleep and wonder how they'll make the mortgage, or pay their doctor's bills, or save enough for college. There is new energy to harness and new jobs to be created; new schools to build and threats to meet and alliances to repair.

"The road ahead will be long. Our climb will be steep. We may not get there in one year or even one term, but America I have never been more hopeful than I am tonight that we will get there. I promise you we as a people will get there. "There will be setbacks and false starts. There are many who won't agree with every decision or policy I make as president, and we know that government can't solve every problem. But I will always be honest with you about the challenges we face. I will listen to you, especially when we disagree. And above all, I will ask you join in the work of remaking this nation the only way it's been done in America for 221 years block by block, brick by brick, calloused hand by calloused hand.

"What began twenty-one months ago in the depths of winter must not end on this autumn night. This victory alone is not the change we seek it is only the chance for us to make that change. And that cannot happen if we go back to the way things were. It cannot happen without you.

"So let us summon a new spirit of patriotism; of service and responsibility where each of us resolves to pitch in and work harder and look after not only ourselves, but each other. Let us remember that if this financial crisis taught us anything, it's that we cannot have a thriving Wall Street while Main Street suffers in this country, we rise or fall as one nation; as one people.

"Let us resist the temptation to fall back on the same partisanship and pettiness and immaturity that has poisoned our politics for so long. Let us remember that it was a man from this state who first carried the banner of the Republican Party to the White House a party founded on the values of self-reliance, individual liberty, and national unity. Those are values we all share, and while the Democratic Party has won a great victory tonight, we do so with a measure of humility and determination to heal the divides that have held back our progress. As Lincoln said to a nation far more divided than ours, 'We are not enemies, but friends though passion may have strained it must not break our bonds of affection.' And to those Americans whose support I have yet to earn I may not have won your vote, but I hear your voices, I need your help, and I will be your president too.

"And to all those watching tonight from beyond our shores, from parliaments and palaces to those who are huddled around radios in the forgotten corners of our world our stories are singular, but our destiny is shared, and a new dawn of American leadership is at hand. To those who would tear this world down we will defeat you. To those who seek peace and security we support you. And to all those who have wondered if America's beacon still burns as bright tonight we proved once more that the true strength of our nation comes not from our the might of our arms or the scale of our wealth, but from the enduring power of our ideals: democracy, liberty, opportunity, and unyielding hope.

"For that is the true genius of America that America can change. Our union can be perfected. And what we have already achieved gives us hope for what we can and must achieve tomorrow.

"This election had many firsts and many stories that will be told for generations. But one that's on my mind tonight is about a woman who cast her ballot in Atlanta. She's a lot like the millions of others who stood in line to make their voice heard in this election except for one thing -- Ann Nixon Cooper is 106 years old.

"She was born just a generation past slavery; a time when there were no cars on the road or planes in the sky; when someone like her couldn't vote for two reasons because she was a woman and because of the color of her skin.

"And tonight, I think about all that she's seen throughout her century in America the heartache and the hope; the struggle and the progress; the times we were told that we can't, and the people who pressed on with that American creed: Yes we can.

"At a time when women's voices were silenced and their hopes dismissed, she lived to see them stand up and speak out and reach for the ballot. Yes we can.

"When there was despair in the dust bowl and depression across the land, she saw a nation conquer fear itself with a New Deal, new jobs and a new sense of common purpose. Yes we can.

"When the bombs fell on our harbor and tyranny threatened the world, she was there to witness a generation rise to greatness and a democracy was saved. Yes we can.

"She was there for the buses in Montgomery, the hoses in Birmingham, a bridge in Selma, and a preacher from Atlanta who told a people that 'We Shall Overcome.' Yes we can.

"A man touched down on the moon, a wall came down in Berlin, a world was connected by our own science and imagination. And this year, in this election, she touched her finger to a screen, and cast her vote, because after 106 years in America, through the best of times and the darkest of hours, she knows how America can change. Yes we can.

"America, we have come so far. We have seen so much. But there is so much more to do. So tonight, let us ask ourselves if our children should live to see the next century; if my daughters should be so lucky to live as long as Ann Nixon Cooper, what change will they see? What progress will we have made?

"This is our chance to answer that call. This is our moment. This is our time to put our people back to work and open doors of opportunity for our kids; to restore prosperity and promote the cause of peace; to reclaim the American Dream and reaffirm that fundamental truth that out of many, we are one; that while we breathe, we hope, and where we are met with cynicism, and doubt, and those who tell us that we can't, we will respond with that timeless creed that sums up the spirit of a people:

"Yes we can. Thank you, God bless you, and may God Bless the United States of America."

EPF 8%???

What do u think of EPF contribution going down? Is it beneficial for us? 

As chinese proverb says, 'RELAX FIRST (LAH) , SUFFER LATER'.... hahaha


EPF down from 11% to 8%


PETALING JAYA: Employees can choose to reduce their EPF contributions to increase their disposable income next year.

The Government has allowed employees to reduce their contributions by three percentage points from 2009 to 2011.

Presently, the employer’s EPF contribution is 12% while employees contribute 11%.

“With the reduction, the total contribution is still at a reasonable rate of 20%, which is 12% from the employer and 8% from employee,” said Deputy Prime Minister Datuk Seri Najib Tun Razak.

Najib, who is also Finance Minister, said if all contributors chose to reduce their contributions, it would come up to RM4.8bil annually.

“Assuming that only 50% of contributors take up the option, private spending is expected to go up by RM2.4bil,” he said.

“A person earning RM2,000 could gain an extra disposable income of RM60 monthly, while one earning RM6,000 will have an extra RM180 to spend.”

On the RM5bil fund injection into government investing agency Valuecap to stimulate capital market activity, Najib said similar moves had been implemented in other countries such as the Tracker Fund in Hong Kong in 1998, and recently by Qatar Investment Authority and the largest pension fund in Korea.

“The extra fund is acquired from EPF loans which is guaranteed by the Government. Therefore, the loan does not only guarantee higher returns compared with deposit rates from banking institutions but is also a minimum risk investment to EPF,” he said.

But, some workers’ unions felt that savings will be reduced and it will affect the people’s retirement funds.

National Union of Bank Employees (NUBE) secretary general J. Solomon said he hoped that the voluntary offer was only for the time being during the economic crisis.

MTUC president Syed Shahir Syed Mohamud said that reduced savings would not benefit contributors.

“When savings go down it will be followed by a decrease in dividends.

Saturday, November 1, 2008

Sharing of another article on investment....

Lately, I would like to share something from Adam-Khoo website.

Doomsday or Golden Opportunity?
October 7, 2008 By Adam Khoo In Investing
It seems really difficult to be an investor these days…doesn’t it? Everything you could possibly invest in seems to be going down down down, from the US, UK, China and Singapore. From stocks to commodities.
The intuitive reaction is to get out of the stock market and get into cash. There is intense fear everywhere that this is financial Armageddon and that the stocks will never recover. Yesterday, CNBC’s Jim Cramer (the guy who predicted that Bear Sterns was FINE) threw in the towel and urged all his viewers to SELL SELL SELL, saying that the Dow Jones dropping another 20% to 7,700 is a possibility.
This fear of buying any stocks and the ’sell before I lose everything’ mentality is what is causing the huge drops in stock prices. The Dow Jones plunged to 9955 (as low as 9,600 intraday) and the S&P 500 down to 1,056.The indexes are down roughly 30% from their highs in Oct 2007. The markets have been on a downtrend for 12 months since the Financial crisis erupted.
Before you start panicking like the rest of the crowd and sell your stock positions, always remember that history always repeats itself. This same panic and fear that caused investors to sell at huge losses (and never daring to go back into the market again) is what happened during the last three crashes.
The Crash of 1973- 1974: Stocks crashed 45% over 24 months. It later rallied 300% over an 11 year bull run.
Black Monday (1987). Stocks crashed 38%. Within 2 months, it rallied 561% over a 12 year bull run.
The dot com bubble burst (2001-2003). Stocks crashed 36% over 24 months. It later rallied 86% over a 4 year bull run.
History shows that the harder they fall, the stronger the bull run that follows. Fibonacci expansion in technical analysis shows that the next XOP (extended objective point on the Dow over the next decade would be 18,000 points, The Dow is now at 9,900. That is a 100% return from where we are.
Invest Only With Money You Do Not Need
So, am I saying that you should take all your money and dump it in the stock market right now? NO! There is a high chance that the market could still go a lot lower before it gets better. Remember that we have been in a bear market for only 12 months. The last bear markets of 200-2003 and 1973-1974 lasted 24 months. We are down 30% from the highs. We could well go another 10-20%. Again, nobody can predict the market and I am not pretending to. Anything can happen and it is almost impossible to buy right at the bottom. For all I know, the market could recover and rally next month.
So, what does a smart investor (opposed to trader) do? The most important thing is to invest with money you do not need to use for the next 2-5 years!!!! The reason why people lose out the the stock market is because they are forced to sell at ridiculously low prices (like now) because they HAVE TO raise cash to pay for their house payments, car payments, children’s education. Never Ever Use Money Which You Will Need. And NEVER EVER EVER borrow money to INVEST.
Invest In Great Companies With Solid Fundamentals
Remember that crashes are where FORTUNES ARE MADE. It is YOU, the well educated investor from Wealth Academy that must now put all your learnings to the practical test. Now is the time to research on those great companies (wide economic moat, way undervalued, history of consistent earnings, Low or zero debt, high ROE) and buy them at huge discounts when NOBODY WANTS TO TOUCH STOCKS. When the market turns around (anywhere from 1 month-12 months), you will be those very few who can say that the crisis was where you made your fortune and laugh all the way to the bank.
This is exactly what our dear Warren Buffett is doing right now, spending billions buying up companies for just pennies to the dollar. He just bought up GE, Added to UNH and also GS. The safest thing you can do is to look at non-financial stocks (the financial stocks have assets that are just too complicated to value) or even just simply buying the Index ETFs! That is a no brainer!
As I have always used a consistent dollar cost averaging model, I will not be looking to time the market so much. Rather, I will just happily and consistently add more and more very good stocks to my portfolio REGULARLY at these really great bargain prices.
Goodie…A Recession May Be Coming Soon!
9 Months ago, I mentioned to all of you (in my earlier postings) that the US will not be entering a recession as the boost from US exports (from a falling US dollar) and steady consumer spending will keep moderate growth DESPITE INCREASING OIL PRICES and the financial crisis. Sure enough, the last two quarters of GDP growth WERE POSITIVE and kept the US out of recession.
However. I now think that there is a big possibility that a RECESSION WILL BE COMING. Here are the reasons (extracted from moneycentral.com- Jim Jubak)
1. On Sept. 24, the Commerce Department reported that sales of new homes had dropped by a seasonally adjusted 11.5% in August from July’s already low levels. Sales of 460,000 for the month were down from the 520,000 new homes sold in July and the 500,000 sold in June. Sales for August 2008 were down 34.5% from sales in August 2007 and reached their lowest monthly total since 1991.
2. The Labor Department reported that new unemployment claims had risen to a seasonally adjusted 493,000 in the week ending Sept. 20. That was up from 461,000 the week before. The total number of new and continuing claims climbed to 3.5 million, about 1 million more than at the same time in 2007. Recessions typically see new weekly claims rise to 500,000. The economy isn’t quite there yet, but it’s getting very close.
3. New orders of durable goods — cars, furniture and other items that are expected to last three years or more — fell 4.5% in August, the Commerce Department reported, after posting slight gains in July, June and May. Even after the exclusion of orders for aircraft, which fluctuate wildly from month to month, and automobile sales, which everyone knows are in the tank, new orders were down 3% in August.
4. Consumer spending is starting to be cut and the rally in the US dollar (because of the plunge in Europe) will hurt US exports as well.
So, Why the Hell is this Good?
Recession = Stock Market Recovery
As crazy as it may sound, the START OF RECESSIONS often signals the ENDING OF A BEAR MARKET.
Take a look at the timing of the bear market of 1973-74 and the recession of 1974-75. This 21-month bear market resulted in the S&P 500 500 Index falling 50% from January 1973 through October 1974. The economy didn’t actually go into a recession until the third quarter of 1974. Economic growth fell 4.4% in the third quarter of 1974, 2.2% in the fourth quarter of 1974 and 5.1% in the first quarter of 1975.
If you compare the timing of the recession and the end of the bear market, you’ll notice that the stock market bottomed in October 1974. That’s at the beginning of the fourth quarter. At that point, the recession had just begun and had another quarter and two thirds to run. From the end of October 1974 through the end of March 1975, while the recession was running in full roar, the S&P 500 ACTUALLY CLIMBED 13%.
Because STOCKS DO NOT REFLECT THE ECONOMY but ANTICIPATE IT, the stock market rallies before a recession actually ends. And it was the visible onset of a recession that, in the case of the 1974-75 recession, helped the stock market find a bottom.
So let’s hope that the actual economic recession will come and start signaling the start of the new bull market and the creation on our next fortune.