Re: [EntrepShare] New comment on Domino Effect from the US Debt Limit Crisis.

Hi Angelica.

For Dagong, it was a brave move. The downgrade will mean deep discounts on their US bonds and other financial instruments.

US rating agencies were forced to follow and meant more difficulties.  In 5 days from Aug 5, 20ll, the world capital markets lost

$8.l trillion in market cap.  That is a lot.  (That is more than 50% of total US debt?)

Some opportunities:

l. It is cheaper to export from US;

2.  RP peso is stronger.  RP now is a safe haven;

3. It will be cheaper to manufacture elsewhere;

4.  Your raw mat from US is cheaper now;

Threats:  

l.  If the crisis deepens, Europe follows;

2. Export markets in US and Europe will shrink;  your choice of ME as market is serendipitous.  Wise move.  US a manufacturing base for US and Europe will be nice.

Thanks for keeping in touch.

Congratulations that more good breaks are coming your way.  Continue to be the best, best in Pampanga and the world best.

Jorge

On Fri, Aug 12, 2011 at 5:37 PM, Angelica Hizon <> wrote:

Thank you a million times Sir! All the more we'll make it really good. We hope it will pass your standards.

With regard to Dagong, I think China lost a lot of business deal from US because of the downgrade. Did I get it right Sir? 

This thing happening with US falls under the law of balance ( or should be called imbalance?) if US and the other big nations fall, China will follow despite it's efforts to find other customers. 

God made the world with inequality because from the beginning there are already those chosen by HIM. I guess it works the same for whatever is happening. We cannot be all equal. In car manufacturing, a car can't be built with the all the same parts; some should be tires, one for steering wheel, one for the gear. We have to complement one another. 

Maybe, this is the first time I became optimistic about such issues. I believe that  because of the domino effect, US will still remain on top except that its going to be in a different level. If it's goes down 3 steps, and so will China and the rest of the world. 

I have good news pala, I have been informed that our HALAL facility will already undergo audit next week.

Also, during our banquet with MVP I already mentioned the sugar free Tocino and everyone was excited. 2 of CDO's children were in the same table as ours, which we actually didn't know until they were recognized after the lunch. And during the World food expo last week, Jerome Ong scrutinized our product and even tasted it! BeLite sugar free will give them a hard fight! Naks!

Thank you again Sir and for listening. This is great, being able to talk to one of the great professors and entrepreneur!

"Always the best from Pampanga's BEST"

On Aug 12, 2011, at 7:12 AM, Jorge Saguinsin 

Hi Angelica,

Congratulations.   Keep it up.

Dagong is independent.  Standard and Poor's were forced to follow suit.

I am not scaring anyone but that is part of our mastery and we will have brace ourselves because we know what would happen, di ba. 

Sleep tight.  God loves you

Jorge

On Thu, Aug 11, 2011 at 12:06 AM, Angelica Hizon <> wrote:

Sir, If recon during our first entrep meeting I mentioned that I intentionally don't watch TV nor read the papers due to all the bad news. I only found out about this debt limit when you mentioned it in class.

Just this morning, our friends from San Diego came to have breakfast with us, and again, they don't even know what it is. Or worst, its implications to them and all the nations depending on US. I cannot really understand why they do not have full knowledge on it especially that these people I get to talk to are professionals.

It would be more understandable for regular Filipino citizens like us not to be adept to this, but for the economists and leaders of our country to react late is .... I don't know what to call it.

Was the credit downgrade caused by the independent Chinese finance firm? And about the sound sleep Sir, I haven't had one in a long long time. Is it age? Hehe

Anyways, we are currently still working on our final paper - the case studies. We are trying to make the paper more informative. We hope that you will be able to make use of them. If only we can ask for an extension of 1 week (without grade reduction) since it's like making 2 BP's haha.

But if not, all the more I will have sleepless nights, hahaha. Mags and I are taking STRAMA now and we belong to the same group again. We keep on convincing each other that we'll get through this. So far, we always get the highest grades in reports ( naks, yabang noh Sir?)!

"Always the best from Pampanga's BEST"

On Aug 9, 2011, at 6:44 PM, Jorge Saguinsin  wrote:

Hi

Did you see in many world news how trillion dollars worth of wealth was lost since Aug 5 just because of credit downgrade?
This is a thing we have to watch out for.  I think it like having an economic doomsday if they are unable to arrest this.  That is Europe and US at risk.  I seldom watch macro news, but this is worrisome.

Oh you can sleep soundly you have great business which people need everyday.