Sunday, April 03, 2005

Pakistan Investors Riot When Market Falls

From the Wilderness

Pakistan deployed paramilitary troops and police to guard the country's main stock exchange yesterday following angry protests from brokers and retail investors, who saw the value of their shares plunge more than 24 per cent in a week.

Hundreds of people, including some shareholders, threw stones and smashed cars after one of the world's best-performing markets tumbled on fears of payment default in the nascent futures market.

The stock market over the past three years has attracted a large number of middle class and first-time investors, who were encouraged by a booming economy, low interest rates and better corporate earnings.

Analysts said sharp gains in recent months had been largely speculative and unjustified by fundamentals. As the downturn gathered pace, many investors were forced to sell shares to meet obligations on the futures market, which accelerated the decline.

The benchmark Karachi Stock Exchange 100-share index closed down 349.15 points, or 4.20 per cent, at 7,964.95, 24 per cent, down from its record high of 10,304.72 points on March 17.

Analysts said the crisis at the stock exchange is the worst in Pakistan's stock market history and has the potential to spill over to the financial and property markets.

Well, well, well. We lose 40% value in stocks, Enron and Worldcom go belly up driving many into poverty and what happens here? Nothing. Worse than nothing, Bush and his buddies sail onwards, winning over and over again! Property values are up and up which is why probably there isn't much anger over losing other investments. So long as one is "property rich", one feels good. But what ails the Pakistani stock exchange is a lot of what is ailing our exchange. They are intertwined, too. Our governments are hooked together in tandem.

The USA just "sold" a fleet of F-15 fighters to Pakistan who, like us, is running in the red and can't afford military toys. Worse, this sale has driven India into the arms of China and Russia. So we destabilize Pakistan more, suck more oxygen out of their domestic base, anger the world's second largest nation, all so we can show some postitive balance in our export/import ratios!

China wants to buy military stuff from us. They can afford to do this, easily. We won't sell to them. Meanwhile, trying to stem the flow of red ink, instead of closing foreign bases, Bush has done this:

Bush Sidesteps Lott, Appoints Commission

Saturday April 2, 2005 10:46 AM

WASHINGTON (AP) - President Bush, apparently brushing aside a stall tactic by Sen. Trent Lott, R-Miss., appointed the nine-member commission that will determine military bases closings without waiting for Senate confirmation.

Bush made the appointments while the Senate was in recess, the White House announced Friday night. The recess appointments prevent delays as the commission prepares to make the first round of base closings in a decade.

Before it left for its spring recess the full Senate had been expected to vote on the nomination of Anthony Principi, former secretary of veterans affairs, as chairman of the Defense Base Closure and Realignment Commission. The other commissioners, nominated by Bush on March 15, also required Senate confirmation.

However, Lott - who opposes base closures and has pledged to protect military facilities in his home state - placed a ``hold'' on Principi's nomination, according to aides and lobbyists speaking on condition of anonymity. The hold delayed voting on the his nomination.

Several things here: what the hay is Bush doing, secretly dictatorially appointing during recess in order to circumvent Congress when HIS party runs both houses???? If this isn't the definition of "dictatorship", I don't know what is. He doesn't listen to his own party, even! On top of this, here we are, emptying out America of jobs and our military, so we can rule the world. I wrote on 9/11/1, "We have left America undefended, there were literally barely any military fighter jets available to defend even the Pentagon from aerial attacks". Well, looks like if someone evades our military overseas and comes to launch an attack on us, they will have even less difficulty in succeeding! People voted for Bush because he was supposedly the one who would protect America. Not Saudi Arabia (who attacked us) but America! Yet we have half of our navy and three quarters of our troops stuck next to Saudi Arabia, suppressing fellow Arabs that the Saudi Royals fear. This makes zero sense on any level.

Trent Red State Lott is a piece of work, too. He wants to save bases only because he is a leech who eats the hard earned tax dollars other people create. His home state devours huge amounts of Federal loot and he wants to keep those spigots flowing. So much for "a smaller government".

It seems to me to be time to get rid of the Republican control of the Senate and the House in 2006. If only we could get rid of Diebold, this will happen.

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