The bail out of SVB could have been avoided - Sen John Kennedy

Every generation needs a revolution - an entrepreneurial revolution

Sen Kennedy takes down Pres Biden for SVB bail out

In a speech before his colleagues, Sen John Kennedy Sen John Kennedy said that the bail outs of the three banks in US could have been avoided if any of the three things were done:

1   The investment strategy of SVB to invest in high yielding but interest rate sensitive bonds was non

banking 101;

2.  The regulators had regular reports from the bank but failed to note the red flag and take proactive steps to prevent a bank run

3.  SVB was an illiquid bank but a solvent one, but merely was unable to provide liquidity to those withdrawing because  of parked funds at the bonds;   the regulators could have by phone arranged for a buyer on Friday or Saturday so that a bail out was unnecessary (as what CSB did)   But they did not.

Sen Kennedy decried the presence of underserving in the nation:

The large corporations get bail out

The masses get hand outs;

The middle class, the taxpayers get billed out

Health care will continue to be a driver of entrepreneurship, business, and Philippine economy

Every generation needs a revolution - an entrepreneurial revolution

Metro Pacific Hospitals - target 40 hospitals

A famous surgeon in working with a billionaire businessman owning strings of hospital across the country,  mentioned while doing a surgery on my elbow that a hospital where he has invested in now valued at P60m  That was the bid of the billionaire.   And that was from an investment of only P1 million 4 years ago.  Tnat is a lot  of ROI

I mentioned that health care will continue to be source of growth in the economy  Everybody gets sick (and for the memorial park, everybody dies;  it cant be avoided)   Health care will continue to flourish despite all negative predictions about global economy

The good surgeon was former student at GSB, and he must have learned a couple of great things about business while under my tutelage  This post was also engaged to conduct an organizational and strategic planning for the said hospital during the formative stage

Philippines will be isolated and insulated from the world economic woes

Every generation needs a revolution - an entrepreneurial revolution

Bright future for the Philippines in 2023 - Diokno. From Philstar

Will Philippines be part of the world global recession?   All ready the tremors are spreading in Europe after a bank run in Switzerland, and soon Germany, bastion of EU economic strength

But my view and view of many is that Philippines will be unaffected by these events:

1.  We will be unlike Pakistan, who is soon to be predicted to be bankrupt  (we have a more stable leadership, BIR collect taxes)   Definitely not like Sri Lanka

2.  We will not experience the hyper inflation of Venezuela (we will soon if we continue being a welfare state, engage in war, or massive unabated infra projects)

3.  We willl not experience UK difficulties  ie that of inflation and woes brought about by Brexit  (Imagine happening to what used to be the richest countries in the world . This happens not only to countries but to individuals  This happened to a distant uncle who used to own two big major subdivision, could not even pay for his funeral.  His daughters and sons impoverished him

Philippines has large domestic population which can sustain consumer demand  Our monetary system is sound, fiscal policies are in place.  Despite occasional news about  corruption and crimes, our peace and order is way above the norm.   Our Pres has a high rating

What worries us is the huge foreign borrowings .  We have $100 B bank reserves though.  

If our BPO and OFW remittances hold out in 2023, we will not suffer.   We see huge cap ex outlay of many of the Zillionaires in the country   MVP for instance continues to buy hospitals, investment in health care.  

We have bright execs and expatriates who caused boom in Indonesia, Vietnam and rest of Asean.  

Everything will be bright and all right for the Philippines