(Last week, I emailed Filipinos working all over the world to find out how the US global financial crunch is affecting one of the major sources of the country’s liquidity—the so called OFWs. Some are regular readers of MoneySmarts, while some are friends of another blogger Reyna Elena. They were kind enough to reply and a short version of their emails (in the interest of space) were included in a feature I wrote for the Philippine Daily Inquirer. I am publishing this week in installments the full version of their emails. I hope the series will help us understand how Filipinos all over the world are affected and are responding to the crisis.)
I have just recently quit my job as director of finance in one of the largest housing authorities in the United States with over 3,000 employees. I’ve been unemployed since July 2008; however, I have just accepted a job in Chicago as director for one of the largest development corporation dealing with housing tax credits, asset management and property investments. I expect to start very soon.
My parents, very religious, took the church’s “go and multiply” advice by heart and made parenting an algorithmic Fibonachi, that’s why there’s 11 of us in the family. We lived in the barrio and could not find opportunities in the Philippines because at that time, they’re all reserved for the rich, the powerful and the conios. So, I paddled my boat to the land of apples and honey. I’ve been working in the United States for over 21 years now.
Growing up in the Philippines, I really thought that we have perfected corruption. To my surprise, corrupt officials are populating Wall Street and beyond as well. They could literally bring down a world financial system! That worries the heck out of me because I can’t seem to believe that these crooks could actually shake the entire financial system and make our lives miserable. When I say “our”, I just don’t refer to Americans, rather, world citizens as well. For if America sneezes, the world catches cold.
Given that I worked in the financial, real estate, investment and asset management side, I had the privilege of understanding the complexity of what’s behind the current financial turmoil and so I could fully and truly appreciate its implication on me personally, my family and my fellow overseas Pinoy friends.
My 401-k (read: retirement) is now down 15 percent. Two weeks ago, I felt comfortable because my retirement money is with Wachovia, where it sits at the moment. Suddenly, Wachovia is in the news. It’s bad enough that I have increased my monthly remittance to the Philippines because of certain fixed expenses back home.
As you can see, Filipinos here in the States took a direct hit from the subprime crisis, from our retirement investments to our mortgage that can’t be refinanced, to our rising credit card interest. Loans are now difficult to find. Worse, applying for one is even more difficult. So, we’ve cut down on a lot of unnecessary expenses and travels.
Thing is, I don’t invest in Manila because I am not very familiar about the local investments procedures and I have had lousy experiences as a bank customer there. Since I don’t want to surrender the decision making to investment administrators in Manila, and they have not won my confidence as of yet, I continue to be on the sidelines.
However, I will never let those sick Wall Street people dictate my life. I am being prudent in all of my expenditures and wiser in spending money. My strategies are to stay put, cut down on expenses, find more extra income, and continue to be cute and happy. I was planning to go home and find a job in Manila. When all of these investment houses started tumbling down, I asked myself if it would be better for me to stay here. I’m still thinking. I can’t decide. Help me 
64 Responses to “A Pinoy in the US hit by the credit crisis”
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October 9th, 2008 at 2:34 pm
to Pobreng Obrero:
I was like you once. I despise OFWs when I was growing up, since I pity my classmates whose fathers or parents are working abroad. They only get to see them once a year (if they’re lucky), or once in two, three years, worse five years.
But I have become an OFW myself. Yes, the very same kind I used to despise. I have my own personal reasons for doing that. I learned life the hard way, there were sacrifices to make, risks to take. But I am proud of what I have become.
When you said that we OFWs tout ourselves as “major income source for the Phlippines”, I don’t actually agree with you on that. It was the media somehow branded us the modern day heroes. It’s a shame that our country has become a major exporter of human resources. That we are actually grooming future nurses, doctors, caregivers who will leave the country and look for greener pastures overseas.
And when you said that our remittances go straight to CONSUMPTION instead of investments and savings - well more and more OFWs are becoming smarter with their finances and are actually investing in real estate properties in Phils. and in money markets both in Phils and overseas.
I didn’t totally turn my back from our home country. As I said, migration is just a temporary solution. I’m yearning to come home someday, to be with my family and loved ones. But I’ll do so when I can afford to retire comfortably. Or put my own business where I can help to empower other people.
October 9th, 2008 at 1:51 pm
[...] was one of those bloggers tagged by Reyna Elena to respond to Philippine Daily Inquirer’s Salve Duplito’s request for opinion on how Filipinos overseas are affected of the financial [...]
October 9th, 2008 at 1:44 pm
“Walang Ganyan Sa States”—has become quite an unpopular brag nowadays hasn’t it.
Maikit says it so succintly. What better place to prosper than in your home country.
Remember, we’re a developing economy…opportunities abound for those with the right attitude, and who know where to look.
OFWs always tout themselves as “major income source for the Phlippines” but in reality they practically don’t pay taxes and most of their remittances go straight to CONSUMPTION instead of investments and savings.
No real homegrown products are being developed from those billions of dollars of so-called liquidity.
Sure, our system sucks if you compare to 1st world countries, but that’s because the citizens-forefathers of those countries developed those systems now being enjoyed by migrants.
As a Filipino, if you have no participation in our country’s homegrown development, you should at least have the delicadeza not to criticize it.
Remember the TV commercial where a dollar-earning “balikbayan” laments the poor state of our country’s roads by saying “Walang Ganyan Sa States”…no big surprise because she pays her taxes abroad and not here!
OFWs with such an attitude should apologize to the “pobreng” peso-earning salaried workers who pay taxes every 15th/30th of the month so that they could use our “bulok” roads and on their way to Duty Free Shops.
October 9th, 2008 at 12:47 pm
Migration should be a temporary solution, a means to an end, where the end result is retiring comfortably in your home country and be in a position to contribute constructively to the society.
So goodluck to you Edwin. I hope that you may discern the answer to your dilemma.
Salve, can I also contribute my piece?
October 9th, 2008 at 12:32 pm
Dear Pinoy,
Go home and see for yourself. Who knows? Yours might be a different story altogether.
Goodluck!