(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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Pages: « 13 … 11 10 9 8 7 [6] 5 4 3 2 1 » Show All
October 9th, 2008 at 10:46 pm
Have you looked at the ownerships profile of those condominiums in the Philippines.
Long time before they have made their groundbreaking, ownership titles have already been transferred to OFWs and global pinoys who export their skills but bring home the bacon for their families in the Philippines.
Absentee filipinos rent them out to foreigners who can not buy real estate properties in the Philippnes. the rental income are deposited in Philippine banks thereby providing liquidity to banks which can lend loans to small businesses.
October 9th, 2008 at 10:36 pm
pobreng obrero wrote:
=====
Obviously you are ignorant how economy works and how the billions of dollars remitted help in the export and import businesses in the Philippines and in payment of debts in dollars.
Your tycoons and big businessmen offshored some of their operations to china, Australia and Vietnam .
in the process, incoming dollars from these operations are deposited in foreign countries depriving the Philippines the dollars it need in dealing with its international financial and business affairs.
many politicians salt their dollars, buy real estate in other countries and send their children abroad to protect their money in case of political upheaval like what happened during marcos time.
the Country needed the dollar reserves to fund the importation of raw materials for their production. Many of these industries are export-oriented. no dollars, no materials…no materials..no exports….no exports…no income from these industries…no employment etc. it is a domino effect.
Without dollar reserves, our own BSP has to buy dollars using our pesos and therefore affecting the exchange rate of pesos.
sometimes our ignorance make us look dimwits. if you are not sure, make your comment in question form. i will be glad to
answer them.
October 9th, 2008 at 9:01 pm
Reyna Elena, we always find our place in the greater scheme of things. Obviously you are cut for the job there in the US (bulong ko na lang kung bakit) and somehow you proved that your decision is right. Some even go to the extreme of leaving their business here and selling their carabaos just to find green pasteurs abroad. But you on the other hand has luck and fate at your side. Just continue to trod where life brings you because you serve as an inspiration to many. Your being an OFW is already a testimony that Filipinos can make it big wherever they are. You see you are so far away with your country, yet so near.
Pax et Bonum
October 9th, 2008 at 7:26 pm
we all have our stories to tell.. i used to be one of these “OFWS” who dreamed of making it big “out there”.. i realized that i really don’t have to look that far.. i packed all my things and went back to Manila..
While walking along Ayala I looked up and saw those gleaming towers. I asked myself why it’s so high and wondered where the money was coming from.
One day, I applied and got hired.. I’m now slowly and surely climbing the “corporate ladder” and I’m bringing along with me the “attitude” and experiences I got from being an OFW..
October 9th, 2008 at 6:42 pm
to ghia, maikit, elmar, steve, icerynk, iamleeyah, malen
I want to live and work in Manila. As in NOW NA. I actually shared with Salve my desires of going back home to Manila for good. I did that in 2005, unfortunately, I ran into some problems with the business that I started. And so, I went back to the US.
In 2005 in Manila, I was being hired by an investment corp in Makati. I turned down the job because I know that salary will be a big factor, I did not realize that I will DA biggest factor.
A few months ago, I got an invitation to teach at a local university in Manila. Again, I believe it’s not the right time yet. You see, I still have a good chunk of fixed payments that I am obligated to in Manila and until that disappears, I honestly cannot accept a job in Manila much as I really, reallllllllly wanted to go home na. So, plans are on hold.
I guess, my entry must have evoked a lot of negative feelings. I apologized. I wrote it at a time that the Dow was spinning down and I was really angry. But not all is bad here. I still believe that a much stronger US economy will come out of this. Which is always the case. Meanwhile, I hope I’ll be successful in Chicago.