Sadly the NSE is not as proactive as it should be in regulating the stock market.

OBAGADAFFI:


I know say na JIJO things.

But the NSE should have warned and suspended trading on Skye bank before CBN hammer.

http://googleweblight.com/i?u=http://c.newsnow.co.uk/A/955635410%3F-395:737&hl=ha-NG&tg=575&pt=25

Romanus Ugwu, Abuja
Business mogul, Jimoh Ibrahim, has cautioned the Federal Government to put adequate measures in place to cushion the effects of world economic recession expected before December this year.
Ibrahim revealed that balance sheet of the leading economy in the world, America, “is having a deficit of about a trillion dollars in import while China is coming to Africa with money for investment.
Speaking with newsmen last weekend in Abuja, the billionaire businessman said it was high time President Muhammadu Buhari took his anti-corruption fight to Ministries, Departments and Agencies (MDAs), by merging ministries as part of preparations for the unavoidable world recession.
“We don’t have to be prepared for it or not, it is something that will break out anytime from now and you have to get ready and it is good that we are predicting it now before it happens and not many people know and maybe the Federal Government may not know that another world recession is coming, but it is going to happen before the end of December. This recession has a very interesting phase; the phase of massive failure of government as opposed to company failure.
“The last recession in 2008 companies went down, G-Electric, Fourth Foundation, Lehman Brothers and so on, but this time round it is going to be both government and companies that will collapse.
“So, the recession is coming, it is unavoidable. America’s balance sheet is having a deficit of about a trillion dollars in import and China is growing heavily and coming to Africa with money,” he said.
Asked what the Federal Government should do to prepare for the impending recession, Ibrahim said, “preparation in Nigeria depends on the system, which is not just about the President. We have been having corruption fight but we have to take the fight to the Ministries because a lot of corruption goes on in these areas.
READ ALSO: FIRS rakes in N13b from billionaire tax debtors
“EFCC is doing a very good job but maybe they will have to divide themselves into two sectors; public model corruption and systemic model corruption whereby no matter the small amount of corrupt you do, the EFCC will investigate and invite you the way we invite the big guns, which means silencing corruption in the system and the upper ones will sustain themselves in a standard that is acceptable and by the end of the day you get a level.
“When you clean up corruption at the upper level and the system is still eroded in corruption, then you might have to come back to fight the system again and before you finish that, the upper one cleaned might have graduated again,” he said.
While commenting on Nigeria’s foreign debt, Ibrahim said, “no economy in the world has that; that is a fantastic opportunity. That could be seen as a great news as opposed to being seen as a bad news. But the problem here is where the sadness is; when Nigeria goes out to borrow money, it may not get it even though it has a fantastic matrix, which is 20 per cent GDP to debt ratio but that won’t give you money which is sad.
“Matrix is GDP to revenue. The lender wants to know what is your capacity to pay back the debt and maybe it is about 8 per cent. Will you lend to someone whose capacity to pay back is about 8 per cent? The answer is no.
“Again, where the great challenge is now is GDP to reserve. Take away $33 billion CBN reserve from $42 billion, you will probably have about $10 billion or thereabout, so GDP to reserve is not very promising. For me as a lender, I will not give you money if your GDP to revenue is not positive and your GDP to reserve is not interesting.
“Now, if you compare UAE GDP to debt ratio, it’s high, so debt is about $146 billion and two million people and GDP to revenue is about 70 per cent guaranty that you can go to sleep and you will get back the money.
“So for me, I think it is about matrix but with the synopsis I am looking at in the doctrine level now in the Nigerian context, would you say that five of our abandoned projects are worth the size of our debt?
“Let me name them straight away – Ajaokuta, $5 billion; Adeja Dam project, $3.5 billion; Okopia power plant was done about $1.8 billion or thereabout; these are yanks of abandoned projects.
READ ALSO: Skye Bank: Why we chose bridge bank option – CBN, NDIC
“So how many abandoned projects do you have? If I look at your economy in real sense, I see about 11,980 abandoned projects out of 12,000, about 62 per cent projects that have been abandoned from 1970 to the present day and it gets terrible when we miss this; it is not about doing new things and running new infrastructure.
“The real point for Nigerian context is what do you do with your abandoned projects? Are you going to borrow money to commence another abandoned project? So, if you have a great number of 11,000 abandoned projects, there is a huge pop for anybody who is in government to work because even if you have no timetable of your own, you pick these abandoned projects and complete them.
“Once you do that, unemployment will disappear, inflation will go down and then what happens, your matrix will begin to go up like GDP to foreign reserve, GDP to revenue and current account balances.
“If government completes abandoned projects, it creates jobs, gets inflation out and then people live very well, reduce poverty and have a better economy but if you take 11,000 abandoned projects right now and at the same time you are spending $200 million on new projects, which is what our budget is every year, then obviously there is a mismatch. This mis-allignment will stop whether you like it or not.”

OBAGADAFFI:


You don't need to generalize .

Their are companies with good good corporate governance on the NSE.

SKYE bank issues is not new to anyone here.

Just like Japaul, Oando and co.

@ obagadafi... How can one not generalized the financial tsunami in Nigeria? "
A country where crude oil has been on the increase in the last 6 months with no increase in all the oil companies quoted (upstream and down stream) share prices? Rather they are all declining everyday.
In a sane atmosphere, this should reflect on the share prices. For Instance, conoil is into both exploration (exploration I. e upstream and marketing for downstream ) still it has lost almost 50% of its shares value in less than 6 mths.Adenuga is taking his investors for granted. He believes nothing will happen to him.. Nigerian investors are mumu. It took him almost 6mths for him to release the 2017 financial report in 2018.
Why can't sec n NSE deal decisively with all this CEO/CHAIRMEN that are taking us for granted?

OBAGADAFFI:


I know say na JIJO things.

But the NSE should have warned and suspended trading on Skye bank before CBN hammer.

The other day I asked if the accumulated fine for late submission of result by skye had not accumulated beyond any profit they might have made between 2016-date. Them say make I close mouth make the bull continue.
NSE only acts after other regulators have acted. Now they will nit be able to recover accumulated fines. Except if the go after individual shareholders.

Mcy56:
There's still mixed feelings in the market so far....... we are observing..

The market has refused to mourn the demise of skye bank.

veecovee:


This is why you should discard most info you write from here.

Soteee them go talk say heaven dey fall ... nawaooo!

thank God that I didn't invest in some of those stocks ... I would have developed HBP by now, due what they've being saying here since friday

Nigeria is in for long time, news on another economic melt down coming up before December, I will never wish any person 2008 economic melt down experience.

[quote author=Mpeace post=71478793]The other day I asked if the accumulated fine for late submission of result by skye had not accumulated beyond any profit they might have made between 2016-date. Them say make I close mouth make the bull continue.
NSE only acts after other regulators have acted. Now they will nit be able to recover accumulated fines. Except if the go after individual shareholders.[/quote
Mpeace... Lol... It was an Oligarchs induced bull.
How can an epileptic bank like sky suddenly entered the bull t?erritory with no technical n fundamental supports? Only in Nigeria will this happened with no commission of enquiry.

Chibuking81:
Nigeria is in for long time, news on another economic melt down coming up before December, I will never wish any person 2008 economic melt down experience.

Easy dear, your mates are about to make 20% from uacn of just last week. Its a matter of timing.

Yes I know of election bear, but common sense tells me that all the monthly candles can't remain red till next year February.

Time yourself very well and take your profit or lost when due before the main bear.

Cheers

Chibuking81:
Nigeria is in for long time, news on another economic melt down coming up before December, I will never wish any person 2008 economic melt down experience.

Abegi. na today we start hear melt down? Talk another thing pls. Pple have been shouting meltdown since 2014

https://www.express.co.uk/news/world/1021696/global-recession-financial-crash-economic-crisis-great-depression

Global recession WARNING: Next crisis will top Great Depression and is just TWO YEARS AWAY
A GLOBAL economic catastrophe which would put the Great Depression of the 1930s and the financial crash of 2008 in the shade is just around the corner, analysts have warned.
By SIMON OSBORNE
Economists are warning of a global financial crisis (Image: GETTY)
They said the world’s financial markets were brought to their knees by easy credit 10 years ago and predicted a vast global debt mountain could to do the same at any time.

Murray Gunn, head of global research at Elliott Wave International warned a worldwide debt of $247 trillion could easily spark the next international crisis.

He said: “We think the major economies are on the cusp of this turning into the worst recession we have seen in 10 years.

“Should the US economy start to shrink, and our analysis suggests that it will, the high nominal levels of debt will instantly become a very big issue.”


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Mr Gunn said low wages had led to a decade of escalating household debt across the US while the country’s national debt has more than doubled to $21 trillion over the same time frame.

Economists say that debate will have to be paid at some time and fear the tipping point will come when a wave of defaults by overwhelmed borrowers — potentially squeezed by rising interest rates — leads to a widespread reduction in spending and incomes.

And Mr Gunn sees a brutal deflationary spiral ahead in the next global downturn.

He said: “People will look to the central banks to help them out, but the authorities will be found wanting.




Analysts warn vast global debt could spark a crash (Image: GETTY)
“Our prediction is that central banks will go from being feted for ‘saving the world’ in 2008 to being vilified for being impotent in the coming deflationary crash.”

Economic commentator Peter Schiff warned a major economic downturn could begin with the next two years.

He said: “We won’t be able to call it a recession, it’s going to be worse than the Great Depression.”

“The US economy is in so much worse shape than it was a decade ago.


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“I think we are going to have a dollar crisis — you think the Turkish lira looks bad now, wait till you see when the dollar is imploding and we have a sovereign debt crisis in the US.

“The US government is going to be given a choice between defaulting on the debt, or else massive runaway inflation.”

Ray Dalio, head of the $150 billion Bridgewater Associates hedge fund, also warned a new economic downturn could be even more devastating than the world crash of 2008.

He said: ”In two years, the time will come to start to worry. It will be more of a dollar crisis than a debt crisis and I think it will become more of a political and social crisis."

Chibuking81:
Nigeria is in for long time, news on another economic melt down coming up before December, I will never wish any person 2008 economic melt down experience.

Election and skye news not doing enough justice now is economic melt down ?
Keep up the good work..

veecovee:


Easy dear, your mates are about to make 20% from uacn of just last week. Its a matter of timing.

Yes I know of election bear, but common sense tells me that all the monthly candles can't remain red till next year February.

Time yourself very well and take your profit or lost when due before the main bear.

Cheers

Its a matter of jijo

Even diamond I thought should be on full offer now is about to turn green

Mpeace:
Abegi. na today we start hear melt down? Talk another thing pls. Pple have been shouting meltdown since 2014

That guy is playing so much movies in his head.. I’ll advise him to watch one finish first.

Yayira:


That guy is playing so much movies in his head.. I’ll advise him to watch one finish first.

I really wonder the type of person he is

Princkez:
$80.74

...wicked resistance broken at last! This week price close is important for me
https://www.bloomberg.com/news/articles/2018-09-24/major-traders-see-return-of-100-oil-due-to-u-s-iran-sanctions

Infinitisi:
Sadly the NSE is not as proactive as it should be in regulating the stock market.

NSE that can't run a functional website.

897 views|Sep 23, 2018,2:06 pm
Why We Should Control The Federal Debt Before The Next Recession
Teresa GhilarducciContributor
Retirement
I am an economics professor focusing on retirement security and jobs.

Getty Images: Royalty Free

National debt is now 105 percent of GDP. Should we worry? Debt alone is not a problem. During WWII, war-related debt was at a all-time high — 118 percent of GDP. And, debt levels naturally rise in recessions.


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So, not all debt is bad. But economists worry when borrowing fuels consumption and not investment. Increase debt to build schools, railroads, health systems, create anti-recession spending, and to fight fascism. Good debt makes us richer. But debt used to cut taxes for corporate stock buybacks and affluent household spending, which yields little research and development and other productive investment is bad debt. Bad debt makes us poorer.

And high debt levels can leave little room to maneuver. The IMF predicts that among rich nations, only the US will increase its debt-to-GDP ratio in the next five years, the wrong direction during an economic expansion. During an expansion, especially the current nearly record-setting long one, debt should be falling, not rising. In 2008Q3 the government had collected revenue from the booming economy; the debt-to-GDP ratio was a low 64 percent. When the Great Recession hit, the government had room to borrow to finance our fiscal lifesavers, including the American Recovery and Reinvestment Act (ARRA) and TARP, which helped keep the deep recession from turning into a global depression.

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Government deficits before a recession are even more dangerous. Fueling a large federal deficit before a recession is a big mistake. If the economic downturn hit now the government would have less ammo to fight it. Interest payments alone will take up an ever-higher share of the budget as the debt ratio grows. And as the Federal Reserve continues to raise interest rates, the interest share will grow even faster, again leaving little room to increase spending when the next recession comes.

The Congressional Budget Office (CBO) issues a monthly report on deficits and debt. Compared to FY2017, the deficit for the first 11 months of the fiscal year rose by $222 billion, an adjusted 22.8 percent over last year. A steep rise in the deficit while the economy is growing will cause debt to rise even more in the next recession and eventually fuel increasing tax rates while boomers are retiring.

Although rolling back last year’s tax cuts would make economic sense, politics may prevent tax cuts ever getting repealed— President Obama left over 80 percent of George W. Bush’s tax cuts in place. Without healthy revenues, federal spending cuts and a national recession could erode federal and household investments in human and physical capital and infrastructure.



Why is the deficit spiking during an economic expansion? Mainly because of the Republican 2017 tax cuts. Although income and payroll taxes have kept pace, the tax cuts sharply reduced revenue coming from capital gains and corporate tax receipts, and that is creating a revenue gap.

But the biggest red warning light on the spending side is the rising net interest on the public debt. Using our precious income to pay off past debts – especially if the debt wasn’t used for investment — leaves less for future investment and help during a recession. Driven both by the overall increase in debt and rising interest rates, CBO writes that ”the government’s net interest costs are projected to more than double as a share of the economy over the next decade.”

Forbes contributor Stan Collender called the debt-causing tax cuts among the most fiscally irresponsible in modern history. Yet Republican majorities in Congress — hoping to influence the fall elections – are proposing another $2 trillion in tax cuts.

We can afford to reverse the tax cuts now and we should before the recession. Forbes Contributor Jeffrey Dorfman argues tax revenue to GDP is a better measure of national capacity than debt. In 2016, the U.S. took 26 percent of GDP in taxes, compared to 31.7 percent in Canada, 33.2 percent in the United Kingdom, and 37.6 percent in Germany. The economics and math for stabilizing the economy is known and easy – raise tax revenue during an upturn, take on good debt, and cap increasing interest payments. But last year’s tax cuts aimed to repeal the laws of math and economics and ignored the goal of stabilization.



All in all, the 2017 tax cuts created bad debt and more economic risks. When the next recession hits, we all will pay the

BullBearMkt:

...wicked resistance broken at last! This week price close is important for me
https://www.bloomberg.com/news/articles/2018-09-24/major-traders-see-return-of-100-oil-due-to-u-s-iran-sanctions

Broken with annoyance.. BBM remember me in your paradise

Imagine diamond @1.24

veecovee:


Easy dear, your mates are about to make 20% from uacn of just last week. Its a matter of timing.

Yes I know of election bear, but common sense tells me that all the monthly candles can't remain red till next year February.

Time yourself very well and take your profit or lost when due before the main bear.

Cheers

Mpeace:
Abegi. na today we start hear melt down? Talk another thing pls. Pple have been shouting meltdown since 2014

Yayira:


Election and skye news not doing enough justice now is economic melt down ?
Keep up the good work..

@ Vecove, Mpeace and Yayira, u guys should pls leave Sir Chibuking alone.
To be honest, we need folks like him to help create the needed 'gap' where money can be made off for any discerning investor. We need his 'bear songs' to create the dynamic mix that the stock market needs.
My ONLY little worry is that 'he may end up singing too much of a particular song, that he just might NOT KNOW when the market is PLAYING a different TRACK.

Of course the market trend is still bearish. ...but PLENTY OF OPPORTUNITIES ABOUND.
It is in TIMES LIKE THESE THAT real MONEY IS MADE !!

Those who know, know what they need to continue to do.

CAVEAT: Pls do well to read through my signature below.

onegentleguy:




@ Vecove, Mpeace and Yayira, u guys should pls leave Sir Chibuking alone.
To be honest, we need folks like him to help create the needed 'gap' where money can be made off for any discerning investor. We need his 'bear songs' to create the dynamic mix that the stock market needs.
My ONLY little worry is that 'he may end up singing too much of a particular song, that he just might NOT KNOW when the market is PLAYING a different TRACK.

Of course the market trend is still bearish. ...but PLENTY OF OPPORTUNITIES ABOUND.
It is in TIMES LIKE THESE THAT real MONEY IS MADE !!

Those who know, know what they need to continue to do.

CAVEAT: Pls do well to read my signature below.

It's ok ... just that too much of everything is b...

ok

opribo:
How do you revoke the license of a bank and still retain same old management.
Besides from where did Polaris bank come from and who are the owners.

You don't just take people's life saving and hand over to people they don't know or heard of before. Who does that kind of thing.

I just know the last has not been heard of this type of take over. It obviously must be a political foe been targeted that has affected innocent customers of the bank. Yet you expect investor confidence in this type of environment.

CBN said your deposits are safe .
Go and withdraw your life savings from Polaris bank and move it to any other bank of your choice .
It’s just as simple as that

Yayira:


Broken with annoyance.. BBM remember me in your paradise

...lol!

I will like to share my experience in economic recession with you all.
In 2008,i invested part of my first salary(110000) in ecobank transnational incorporation Public offer in $. Then it was N50, 000 at N111. 00/$ totalling $450 and got 1500 units of the moribund Eti shares.
I equally invested my 2nd month salary of N50, 000 naira in the shares of the defunct intercontinental bank that was politically and religiously ruined by the greediness of Erasmus akingbola, i equally opened a Dom account, Coz I had a dream of working abroad. Thereafter, I saved 50,000@$ monthly I. e Average of 400$ monthly in my Dom account.
Fast and forward the American recession came ad a result of easy credit facility n access granted to the American.
The 1st financial calamity by 2012/13was the so called ETI the stock was no longer being traded at $ price.
The 2nd was the demise of international Bank after the take over by political back up access bank, the 7500 units was valued at 250 units I. e 30 to 1
My Savings grace was the $ savings I built up in my first Dom account at m$ at ximum value of 138\$ and was able to build up 20,000 before I left for UK in 2012
Now,the worth of intercontinental bank N50,000 is less than N2000, at today value of access bank of 250 units while the N50, 000 of ETI worth less than 25,000 today.
The moral of the story., my $ investment which I invested less than N2. 7M now worth over N7M.
I am not taking the warning on the next depression lightly, no one knows what will happen to the naira +or- bubu, cos for any human being to grow Nigeria economy, the naira must be devalued or floated, any attempt to practice the present Buharinomics economy might not be good for Nigeria economy. Pls n pls convert your gains n profits into $\€/£ before the expected recession happens.
Message, i am trying to pass to you is that we should all embrace investment diversity.

DeRuggedProf:
At times I read some foreign investment books and laugh.
I know the ideas are great, the investment advice, top notch, execution can be easily implemented, yet they completely fail to include a disclaimer "DO NOT TRY THIS AT HOME (Nigeria)."

You are a very good hunter. Some of us are chasing 10% per annum, after we are tired of losing money.

MonkeyHunter:


Yes I have a bid there.

I also made a 10% gain twice this week trading the stock

Olohunjedalo:

CBN said your deposits are safe .
Go and withdraw your life savings from Polaris bank and move it to any other bank of your choice .
It’s just as simple as that

Its not as simple as that. We are talking of investor confidence as well, we are talking of the things that makes one economy fastest growing and the other lagging behind.
Responsible CBN should do better than wake up oneday and say the license of a bank has been revoked depositors can go take their money from another bank. Do you agree bank is a trust relationship, where is tge trust here in this new bank when i dont know them. You are here saying its as simple as going to tale your money.

Do you know what will happen if all customers who are not comfortable with th this sudden change rush to the bank for their money. The bank will fail automatically.

This type of thing has been happening in our banking sector too often yet the people are too docile to stop it. Thats how one CBN governor in a military style once invaded several banks and took over their management. Some of those banks were looted by the new management before they were finally sold as carcass. Today the new buyers cannot see any value in the purchase.

Godlylifeoneart:

I disagree with you, what was announced was ill heath. Coz I could only see sky bank in a state of status epilepticus. Today the bank daily price chart rises, tomorrow its down, and dz was not unique to only skybank. Most of the quoted companies on NSE exhibit dz features. Hence there was no announcement, only suspiciousness by financial brilliant people. As at the time of last CBN intervention in 2015/16 the political exposed regulator was assuring investors that all banks in Nigeria are saved n healthy.

Price rising got nothing to do with the health of the company.

As at the time when Onwuka Interbiz was DEAD, teh shares were still traded on the NSE. Remember 'Caveat Emptor' when buying any stock.