Michael Manuel and J. Edmond Garcia of Sunlife

With Banco de Oro posting a P1.3-billion loss in the third quarter due to its exposure to bankrupt Lehman Brothers there’s bound to be questions on how the banking industry will fare as a whole, considering that this crisis has its roots in the financial sector.

Here is the transcript of portions of a recent interview I had with J. Edmond Garcia, director for investments of Sun Life Financial Philippines, and Michael G. Manuel, chief investment officer of the same company. These guys have been watching different sectors of the Philippine economy closely since they were stock analysts more than 10 years ago.

MoneySmarts: What are your thoughts about how this crisis will affect the Philippines and the financial sector here?

[Read the rest of this entry »]

Markets are back on their feet and talks of Armageddon and the end of the world are replaced by hope–albeit tentative—that the financial storm has passed. CNN earlier today reported that Americans are feeling a wee bit better about the meltdown and there were little green arrows all over equity electronic boards this morning.

Can we dare hope that the worst is now over?

It feels good to see markets recovering. Even Nouriel Roubini, professor of economics at NYU who as early as 2006 has been beating heavily on the doors of government to take action, looked slightly relieved in his interview with Bloomberg television last week. He said finally the US government has done the right thing in recapitalizing US banks and not just buying toxic assets.
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Photo courtesy of Viewmaker.

(This is a guest post from Cat, another blogger who is based in the US.)

We have to categorize the Filipinos in the United States to better understand the effects of the financial crisis on their lives.

The Overseas Foreign Workers are better known as working visa holders with work authorizations that expire in three years; renewable for another three years. The corporations that hire them can sponsor their green cards within the period of the validity of their working visas. From OFWs, they become permanent legal residents.

With the financial crisis, the dreams of getting employment-based green card sponsorships may not materialize especially if the sponsoring corporations are affected by the financial meltdown. If they cannot get the green cards within the maximum six years of allowable legal stay, the working visa holders are expected to go back to the Philippines or look for other means to become legal residents.
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(The other 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 very kind and replied 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.)

By Froilan Bulaong

I’m 33, working in the field of IT here in Singapore. I have two kids, been working abroad for almost a year and my decision to work in Singapore is due to the fact that I believe I can afford to give better things in life to my family since I’m earning 10 times what I was earning in the Philippines. Some say that OFWs are not patriotic, but in my case, I have so many attempts to have a career in my motherland but sad to say, it never happened.

Emerging economies like China, India, Vietnam, Korea and others in Latin America, are doing well. Things like these happen. In the past, we already had worse problems. It’s just a matter of being prepared and learning new ways and techniques in investments.
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A letter for you. Photo courtesy of Sifah

(The other 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 very kind and replied 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.)

By Leo Obrero

My family and I live here in Norridge, Illinois since 1994. I migrated to the USA in 1978 and had worked for several companies from factory to office work like most of our kababayans before me. Then in 1984 I was hired by the United States Postal Service as a clerk inside its processing and distribution center here in Illinois. I started as a letter sorting machine (LSM) operator.

After eight years of stressful skirmishes with this LSM, I bid out. I moved to another section working in graveyard shifts for sixteen years facing the same pigeonholes every night. But thank God I had this job. I can proudly say that had it not been for the USPS, I would not be able to retire with financial stability.
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(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 very kind and replied 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.)

Marikit Diwa, from Brunei

I’m 37, working in Brunei. I went overseas for work early last year. Money was too good to pass up despite the fears about leaving the comfort zone. I agonized over the decision for weeks though, but in the end, money was too tempting–some three times over my pay in my old job. Plus, free housing, even utilities water, power and best of all, it’s tax free!

I work for a newspaper so I get to hear all the horror stories about the credit crunch, high food prices, oil, the Wall St. mess like I have a front-row seat. I have money in a unit investment trust fund (pure equity, so tough luck). So, that’s on top of my worries every time markets fall because of all those things. I checked an online site daily on how I much I gained when the market was really doing well. But when stocks started falling for a time, I didn’t check daily anymore because it just worries me. Now that stocks are really down, I can’t help but check. It’s like a road accident. You can’t look away.
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Photo courtesy of 2create

(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 very kind and replied 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.)

By Jennifer, from the USA

I’m in my mid-30s, married with one kid, and working full-time in a big consulting company. I have been working in the US for almost seven years now (not counting the time I was still a Manila-based consultant but had US projects). I have been a legal US resident for these seven years.

The financial crisis definitely poses concerns, but personally, not to a point of panic. I think that it has effects on everyone in different ways at varying levels, depending on their circumstances. Lending or credit would have major impact on small business owners, or homeowners needing loans, and non-homeowners who hope to have a home.  401k is affected by the tanking and fluctuating stock markets. It is also likely that investors may freeze or withdraw plans for future investments. In my personal circumstance, these are not a big worry at this time.

[Read the rest of this entry »]

(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 very kind and replied 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.)

by Ross Delgado, from the USA

I have been here in US since 2001. Like most Filipinos, I came here armed with nothing but hope for a better life. I never planned on living here the rest of my life. I was to make more money in less time and get the hell back home. At least that was the plan.

You see, I had three wonderful kids that I had to leave. I go back home every one or two years to see them.
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(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 very kind and replied 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.)

By Raquel Erhard, Germany

I am a stay at home mom with two girls, ages 4 and 6. My husband works in a bank here in Germany, a country I’ve been calling my second home for more than seven years.

Whenever I think about the global crisis, I tend to focus on the positive side. The news here in Germany is that the financial fall in the US will not be felt greatly because we have enough reserves, etc. etc. I have a feeling these are all big talk simply to reassure the masses. Well, I am trying not to panic since I dont see my husband panicking. And I’m being very positive in saying this — but I am also hoping that prayers would help the Philippines. There might be other effective methods, but am sending more prayers.

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(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.)

By Edwin Jamora, USA

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.
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