Subprime Crisis - The Worst Is Yet To Come

I came across this article on the NYT about most discussed topic, the subprime crisis in the US. Looking at the graph below, you’ll see that the worst in yet to come. At the moment, we are at the end of the first quarter of 2008 and the full damage will hit sometime in 2009!

Based on the article on the NYT, the Feds are brain storming for ideas how to salvage the situation. How this affect the rest of the world?

China is also looking vulnerable according to Time Magazine. Caused by rising labor cost, strengthening currency, spiraling material cost and now with the slowing US economy, this thing might affect the rest of the world. Another factor is over capacity. There are just too many factories built in the last few years.

Depending on “the feeling factor”, there are several things to do. Among them :-

• be prudent,
• get rid of debt asap,
• upgrade and make sure your skills are marketable, pass your resume around as standby and to have a feel of which industries are doing well
• rebalance your portfolio