On Wed, Sep 23, 2009 at 2:31 PM, amenya gibson wrote:

The economic models that were seen to be best for spurring global economy went belly up and we all saw how too big to fall firms falling down one by one -AIG,General Motors etc

One question that came into my mind Should we accuse the economists for misleading investors and the public to buy into or use new models of investments such as Financial derivatives that showed banks and corporate firms announcing huge profits and within one year were all seeking bankruptcy protections ?

All economists, is assumed that their mandate is to advise investors on best option where they can put their resources to get returns that can are always assumed to be positive

But when an Investors shows up to pick negative returns but burns his/her fingers then something more need to be looked into

There is new thinking that relying on investors advice to make a
decision is dangerous but also there is need to be guided so that you learn where to invest

From global events we need to know greedy and corruption is what made firms fail to practise good corporate practices in their business models

So what we can learn as Kenyans is the need to get more knowledge on various types of investments instruments that are currently available like the ongoing Kengen Bond

Is a good venture but with inflation at above 13% and what they are offering as interest is 12.5% you have to be careful before you invest in there

Even though security is the bond is guaranteed by the Govt which make it more attractive to invest into it

But dont borrow a bank loan to invest since most banks will not offer you loans that attract less than 12 percent interest unless we have some am yet to know

Thanks
Gibson Amenya

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Daniel Nyutu

Strategy Analyst
Strategic Leadership Center International
Horton Court, P.O. Box 3124-00100
Nairobi, Kenya.
Tel: 3872252/ 3877637/ 2067622
Email: dnyutu@gmail.com
Cell: 0728-200075

“Insanity is doing the same thing over and over again and expecting different results”

Albert Einstein (Attributed)
US (German born) Physicist (1879-1955)

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Regards,
Felix Otiato
0722986617/0733435587

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On 9/23/09, Dan Nyutu wrote:

You are spot on. There is alot to learnt from the global economic crisis. These financial papers were too complicated even for trained practitioners to comprehend thus few people knew how they work despite investing in them.

Kenyan situation is a lot worse. The recent pyramid schemes fraud shows we have a lot to do before our people understand the basics of a sound investments. With a government fighting for survival, severe food shortages and selfish interests, the average investor is nowhere near our priorities.

Dan.

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From: Felix Otiato
Date: Wed, Sep 23, 2009 at 12:15 PM
Subject: Re: Lesson Learned from Global Financial Crisis

let me just share a bit on this. The global Financial Crisis came as a result if the Globalization of mistrust arising from a mistake in a single organization with significant resources. and the collabs of the Lehman Bros is cited as the trigger. But this is something that was boiling under and some experts say since 2000 (talk of subprime lending in the US).

My point: we will of course sit trying to understand the technicalities that result from the actions of a few indiviual decisions and mistakes. but we keep for geting that we make the decisions as people trusted with authority, we treat fellow humans (eg. whom we give loans only to come and take all their life savings when the of course default as we expected) as stones and not people with lives, emotions and families.

Now we are trying to be ethical because we want to ensure we are not affected by the crisis. This will not work. We must think inside out, instead of outside in like we are now thinking. we must act right all the times. This mess has happened. But have we learnt from it that our decisions must be sound, based on professionalism and above all, morals?

Just my thoughts.