世界金融危機

2008年は間もなく幕を閉じる。残念ながら、世界金融危機(global financial crisis)は中々そうはせずに発展し続けていく見通し。金融危機は実体経済に波及し、日米欧だけではなく、世界は同時に不況に突入。

１年前に想像もつかなかった大混乱が政界の金融市場を襲っている。アメリカの住宅バブル崩壊(collapse of housing bubble)に端を発した危機は「100年に1度」（グリーンスパン前米連邦準備制度理事会議長）と呼ばれ、恐慌守前に発展。投資銀行(investment bank)業務で高収益を上げていた5社のうち3社が破綻・身売りで姿を消した。

「リーマン・ブラザーズに公的資金を投入する計画はない」。ポールソン財務長官の言葉に居並んだ米金融業界首脳は顔色を失った。創業150年の証券大手リーマンは9月15日に破綻した。

直前まで「リーマンは救済される」という意見が市場の見方だった。FRBは、3月には経営困難に直撃している米大手証券ベア・スタンズに緊急融資、JPモルガンチェーズへの身売りで決着させた。9月7日には米政府系住宅金融2社（ファニーメイ・フレッディマック）への公的資金投入も決めていた。

米証券大手メリルリンチは米銀行大手バンク・オブ・アメリカへの身売りに走りなど、金融市場はパニックに陥った。混乱を見てFRBは方針を転換、9月16日には米保険最大大手AIGを救済した。だが、リーマンを破綻させたことで、危機は欧州に飛び火。アイスランドやハンガリーが相次いで国際通貨基金(IMF)に支援を呼んだ。

ブッシュ米大統領は総額7000億ドルの公的資金で金融機関の不良資産を買い取る金融安定化法案を提出したが、下院は9月末にこれを否決、市場の動揺を加速した。その結果、米株価は4年ぶりに1万ドルを割り、一時は7000ドル台に値下がった。また日経平均株価は26年ぶりに7000円を落ち込んだ。その他の国々も同様に金融危機のせいで悪影響に襲われた。

市場に迫られる形で10月の先進7カ国財務相・中央銀行総裁会議（G7)は金融機関への資本注入で合意。11月には新興国も含めた主要20カ国・地域（G20)の世界金融サミット(world summit)が開催された。金融市場への規制強化を明記する首脳宣言をまとめ、米国流の市場原理主義の転換迫られることを印象付けた。

中央銀行は利下げに乗り出して、FRBは史上初の事実上ゼロ金利(0~0.25%)と量的緩和政策(monetary easing)を導入。

日銀も10月末、約7年7か月ぶりに利下げ、12月には政策金利を0.3％から0.1％まで引き下げた。だが、市場は依然不安定で、金融機関の損失拡大が続く。ドル売り円買いも根強く、円相場は12月に一時、13年ぶりの1ドル＝87円台に直撃。

スペシャリストによれば、世界金融危機は来年度の第2半期までも続くという。一方、2010年度までには世界経済が回復できないという見通しも強まった。

(参考文献：毎日新聞、金融危機、平成２０年１２月２３日）

Single Largest Public Works Project !!

When the economy is in recession, policy-makers tend to design different plan as a remedy. One of those is to increase government expenditure, then the GDP (GDP=C+I+G+Ex-Im) would not decline or even increase. It is recommended to do so, but the even more critical points, HOW? How to do it? Is it the best move?, are always the most difficult questions to answer.

Adams

CHICAGO: President-elect Barack Obama has promised the largest public works construction program since President Dwight D. Eisenhower created the federal interstate system half-century ago. The program is to lift the United States out of economic recession, and to resuscitate the reeling global economy.

The Bureau of Labor Statistics (Dec. 5) reported U.S. loses 533,000 in November, the biggest drop since 1974. As days pass by, the unemployment is on the rise and there is no end to the recession in sight.

Obama began highlighting on Saturday elements of the economic recovery program he is trying to fashion with congressional leaders in hopes of being able to enact it shortly after coming to office on January 20, 2009.

“This painful crisis is an opportunity to improve the lives of ordinary people by rebuilding roads and modernizing schools for our children, and by investing in clean energy projects.” Barack Obama said in a statement right after the latest grim economic report indicating job losses in the U.S. in November.

Obama`s remarks sought to improve the definition of traditional work programs for the middle class, like infrastructure projects to repair road and bridges, at the same time also pushing a federal effort to bring in new-era jobs in technology and so called green-technology related jobs.

Although Obama offered no price estimate for his grand plan, he said the massive government spending program he proposed will invest record amounts of money in the vast infrastructure project, which also includes work on schools, sewer systems, mass transit, electric grids, dams and other public utilities.

Simultaneously, he vowed to upgrade computers in schools, expand high-speed Internet to remote areas, make government buildings more energy-efficient and modernize health care institutions by improving information technology at hospital and doctors` offices.

“We need action – and action now,” Obama said in an address taped for broadcast on radio and You Tube. Millions of jobs would be created by making the single largest investment in national infrastructure since the creation of the federal highway system in the 1950s, he said. He added that state officials would lose the federal dollars if they did not use the money to repair highways and bridges quickly.

Obama and his team are working with congressional leaders to devise a spending package that some lawmakers have proposed could total $400 billion to $700 billion. Some analysts projected even higher costs to achieve the massive plan. The efforts to adopt a broad economic package are likely to wait until he swears in (takes office) and Democrats have bigger majorities in Congress.

“We won`t just throw money at the problems, we`ll measure progress by the reforms we make and the results we achieve – by the jobs we create, by the energy we save, by whether America is more competitive in the world.” Barack Obama addressed the public.

Last week, when he met with the nation`s governors, they said the states had $136 billion worth of road, bridge and other projects ready to proceed as soon as money became available. They estimated that each $1 billion dollars spent would create 40,000 jobs, if the plans are implemented smoothly.

“He hasn`t given us any commitment, but we are fairly certain it`s going to be large,” Edward Rendell of Pennsylvania, chairman of the National Governors Association, said in an interview on Saturday. “I think he understands if you`re trying to reverse the economy and turn it around.... This is not the time to do it in small doses. It`s got to be big.” Edward added.

In a joint statement, New York Mayor Michael Bloomberg, Pennsylvania Gov. Ed Rendell and California Gov. Arnold Schwarzenegger said it would help the U.S. stay ahead of other countries. “To stay competitive globally, the time to repair and modernize our nation`s infrastructure is now,” they said.

The delay to implement the project poses the possibility of a deeper recession, some experts recommended a quick action to make the plan happens.

(Sources: AP, Obama banking on large-scale public works project, Dec. 7, The Japan Times, Obama offers huge public works plan, and International Herald Tribune, Obama recovery plan: Massive public projects, Dec. 8, 2008.)

Accelerating Unemployment !!

When crisis happens, consumers start to use the “wait-and-see approach”. They do not spend money on goods and services then the companies face declining sales. In order to keep their margins, they tend to reduce scale of production, reduce operating costs, etc. to survive. One of those is to reduce expenses on labor force, so CEOs start to lay-off employees.

Who are the employees? They are “Consumers”. But why consumers lose confidence in market performance? The answer is, maybe policy taken by government can not lead to financial stability. Then the question is “Why can it not be achieved?” One of the right answers is “consumers and producers do not smoothly interact with each other.”

So, who is (are) the wrongdoer(s)? My answer is “ALL OF THEM”.

Adams

The author wishes to inform that President-elect Obama`s public works project will be introduced later. Then he is going to raise some arguments by specialists and his own ones against those plans to deal with the global financial crisis in the up-coming posts.

Nobody desires or satisfies with the financial crisis that ruptures worldwide and spread to virtually every corner of the whole economy. But world leaders just set the right policy at the wrong time, they just could not remedy it with minimum possible negative effects on the economy, as a result of what they are doing and will do in the near future.

From day to day, the crisis escalates to the next level, and job losses are spreading far beyond the housing and finance sectors to every edge of the global economy. Companies are now shedding workers at an accelerating rate, some in response to declining sales and others in anticipation of tougher time ahead.

The government`s report of a giant job losses in November, the biggest monthly decline in a generation. The nation`s employers cut 533,000 jobs in November, the Bureau of Labour Statistics reported Friday (December 5).

“We are caught in a downward spiral in which employment, income and spending are collapsing together,” said Nigel Gault, chief domestic economist for IHS Global Insight. “With private spending frozen, we have no choice but to rely on a stimulus package to revive the economy.” he commented on what to do about the crisis.

The Business Roundtable, which represents 160 big U.S. companies said Thursday that 60% of CEOs in a recent survey expect to lay-off employees in coming months, increased from only 1/3 projected job losses. “As economic conditions continue to soften, so have our member CEO`s near-term expectations for sales, capital spending and employment,” Harold McGraw III, Business Roundtable Chairman and also chief executive of McGraw-Hill Cos told reporters.

The unemployment rate rose to 6.7 percent, up six-tenths over the last three months. More than 420,000 people who had been working or seeking in October left the labor force in November. More significantly, if those too discouraged to apply for a job any longer or those working fewer hours than they would like is included, the rate hit a record 12.5 percent in November.

As part of Friday`s announcement, the government revised higher her estimates of jobs lost in September and October. Instead of 524,000 workers were cut in those months, 723,000 jobs were lost, or total of 1.2 million people in just three months became unemployed. Noting that 1.9 million jobs have been slashed since the start of the recession a year ago – two-thirds of them since September.

Steve Gross, a global practice leader at consulting firm Mercer LLC, says some executives are eliminating jobs “as a preventive measure” in anticipation of a long recession. “If you knew you were going to need the workers in 6 months, you would never lay them off,” he says. “But they probably do not need these workers for 12 months or longer…. Companies want to make sure that they can keep their margins.” Steve added.

(Sources: Wall Street Journal, Job Losses Accelerate in U.S. by Amol Sharma, Sudeep Reddy and Cari Tuna. And The New York Times, U.S. Loses 533,000 Jobs in Biggest Drop Since 1974 by Louis Uchitelle, Edmund L. Andrews and Stephen Labaton, December 5, 2008.)

G20 Crisis Summit

News Reviews (November 16)

World Leaders and Global Financial Crisis
WASHINGTON: World leaders at a 2-day financial crisis summit in Washington have agreed on an action plan to restore global growth and prevent future financial upheaval. They have designed many action plans to deal with the credit crunch worldwide and to reverse the global economic downturn.

"There is no logic to making any political and economic decisions without the G20 members, developing countries must be part of the solution to the global financial crisis," Lula, a participant of G20 summit said. Ones can conclude that, right now the emerging economies are playing an important role to go on a journey to achieve an even better place for all mankind.

The G20 (85% of global economy) issued a final statement after one of the biggest international economic gatherings in years. The statement pledged responses on a number of fronts, with another meeting scheduled for April, 2009 to flesh out policy.

"We are determined to enhance our cooperation and work together to restore global growth and achieve needed reforms in the world`s financial systems," the G20 said Saturday (Nov. 15), after the crisis summit in Washington.

One of those plans is government spending, which is to be used to reverse immediate economic downturn. Meanwhile, a global trade deal is to be promoted to guard against protectionism, simply mean the world is right now a flat one and there is no border in trade worldwide. The third one is to achieve a better environment for financial economics. Financial regulation and world financial institutions are to be reformed.

"We should reform the international financial institutions. Again, these institution have been very important -- the World Bank, IMF -- but they were based on an economic order of 1944," Bush told a press conference. Meantime, Gordon Brown said "it is absolutely clear that we are trying to build new institutions for the future." Moreover, Taro Aso of Japan voiced support for a dollar-centered currency system, despite growing concern about the troubled global financial mechanism.

Further, the G20 called for fiscal stimulus measures, by the tax cuts or government spending, to take "rapid effect," and urged more interest rate cuts. The G20 though could bolster efforts in the U.S. Congress to push through a second economic stimulus plan (the first one is $700 billion bail-out plan), which is opposed by Bush and backed by his successor, Obama. Britain, right now is heading fast into recession, may unveil tax cuts this month.

However, there are some points that could not be achieved. World`s press was less than impressed with those outcome of the summit, expressing cynicism about what could come-by in the face of the global financial meltdown.

The final communique was also significant in what it did not included. There was no mention of the creation of a global financial market enforcer as demanded by some European and emerging economies that was opposed by the United States. Either, there was no reference to coordinated stimulus packages from government, an idea promoted by Britain.

Meanwhile, Obama instead sent former secretary of state Madeleine Albright and ex-Republican lawmaker Jim Leach to meet with members of visiting delegations on his behalf. He was criticized by public of being not so active, even though he is just a president-elect of the United States but his voice or suggestion will be listened, some analysts commented.

President Gorge W. Bush, who bid an emphatic "goodbye" at the end of his press conference, said he had told fellow leaders that America would enjoy a "seamless" transition to Obama`s new team.

(Sources: World leaders urge fast action on financial crisis, by David Lawder and Emmanuel Jarry 'Reuters', and World leaders agree action plan at crisis summit by Adam Plowright 'AFP', November 16, 2008)

Lehman Shock

Wall Street Journal News Review (Sept. 16, 2008)

My brother, 'WHY?' Did I do some thing wrong? I just could not understand why you let me fall down, disappear to a place in the middle of nowhere. For 150 years, I have always been working hard, trying to be a good guy to make mom and dad happy and grant people around me hopes.

It is okay for me, but it is just not right, unfair, for my people. They are under my wings, not yet strong enough to be on their own. I just want you to know, I will never forgive myself, and YOU for what happened and is going to happen to them.

My message, for my people, my friends, even it is a heart wrenching, I have to say the only last word from me, "GOOD BYE, Live with Undying Optimism."

The author would like to dedicate his quotation to all men/women who are facing similar critical situation. Life will go on!!

AIG, Lehman Shock Hits World Markets
The convulsions in the U.S. financial system sent a surprising influences to the economy across the globe. Two Wall Street`s biggest firms looked set to exit the main stage and AIG (American International Group Inc.) turned to the Federal Reserve and New York for mercy.

Lehman Brothers Holdings Inc., in filing for Chapter 11 protection for its holding company, as opposed to filing for Chapter 7 liquidation (putting the entire company into bankruptcy proceedings -- gives itself more time and control of what happens to its various assets).

The inevitable fact of Lehman, with approximately 25,000 employees (10,000 to 12,000 of whom work in New York), lead to the feelings, ranged from sadness to anger. At 7:30 am, as many employees were already at their desks, Jerry Donin, head of global equities, "I am sorry it came down to this,...but please don`t let this define you." told the hundreds of people packed onto the trading floor. Meanwhile, feelings of sorrow was not difficult to find, for instance, "It`s just a shame it came down to this," said Lehman Stock analyst Roger Freeman.

After the 9\11 terrorist attack, the U.S. stock market suffered a worst daily point plunge in history. Financial markets were rattle by the immediate sales of Merrill Lynch & Co., Sunday, and the bankruptcy-court filing of investment bank Lehman Brothers Holdings Inc., which on Monday afforded to sell its most-prized businesses.

In stock markets, from Sydney to London and New York, the news caused many drastic, unpredictable selling of stocks. As a result, the major U.S. market indexes were down by 2%, the Dow Jones Industrial Average plunged 504.48 points, off 4.4% to its daily low of 10917.51, down 18% on the year. Besides, London`s FTSE 100 index dropped 3.9%, by Tuesday, Tokyo shares were down 5.1% and Hong Kong`s Hang Seng Index further fell 6.1%.

Banks are increasingly hoarding cash, they also starting to dump assets to raise capital. A mass sales of assets by the likes AIG and Lehman Bros. could flood the market, reduce their value, and leading to additional losses of financial institutions. Meantime, worried investors (with animal spirit) are abandoning huge amount of stocks, from regional banks to big conglomerates. Instead, they flooded back into the safety of Treasury bonds, sending yields on government debt to their lowest levels since April.

By the way, many economists, analysts, even the public have criticized the policy makers (Bush Administration as well as the Congress) on the problem of Lehman Bros. bankruptcy. They argued that Washington stepped in to help Bear Sterns Cos., Fannie Mae and Freddie Mac, but why it opted not to let Lehman survive.

Instead of saving Lehman, Fed officials designed a plan to try to save the broader market, after their study of new liquidity facilities carefully for month. One purpose was to improve these facilities more like the repurchase repos (investment banks get much of their short-term financing) markets themselves. In repo markets, broadening the kinds of collateral they would take from Wall Street firms coming to them for cash is required, anyway.

The Bush Administration has so far taken a largely ad-hoc approach to deal with credit crunch -- addressing problems instead of trying to get ahead of them. However, many market watchers say that is not going to be enough to cool down the current troubles, especially when asset prices drop and financial institution run into capital shortage.

Lehman shock has drawn global attention to the subprime-mortgage crisis. It is just the beginning of critical situation that mankind have to face as a reward to, what everybody eager for, that is profit, and the way they look at each other with fear, grief and suspicion when trouble comes. Why they do not trust each other, take action together, to just build up mutual understanding and trust among living being of the same kind, their only one kind, the kind of human.

(Source: WSJ, Sept. 16, AIG, Lehman Shock Hits World Markets, by Susanne Craig, Jeffrey McCracken, John Hilsenrath and Deborah Solomon)

Deteriorating Auto Industry

Japan Times News Reviews (Dec. 6, 2008)

I. Honda to Exit F1 by the End of Year

"The sun goes down, everybody is gone, and now you are all alone with a few friends in the middle of nowhere. There is no way to contact friends, family, or ask somebody for help. And now you are in a critical situation, where somebody or something is hunting you down, one by one." Then what should you do to survive?

For me, "First stand still altogether and find ways to fight back not just to protect ourselves is the best strategy, I am so sure it works, somehow."

Adams

Honda (entered F1 in 1964, originally strong at motor bike) said Friday it will withdraw from the Formula 1 (F1), making 2008 the last season in F1 motor racing. The main cause is due to rapidly deteriorated amid the global economic downturn.

"Japan`s 2nd largest auto maker can no longer bear large operating costs for F1, $50 billion per year, Honda needs to spare more resources to develop environmentally friendly cars and other new technology." Honda`s President Takeo Fukui told reporters. "Moreover, Honda and its shareholders have no plans to come back to Formula 1 in the future." Takeo Fukui added.

Industry watchers warn that Honda`s move indicates the fallout from global credit crunch has begun to ripple over into sporting businesses, and may possibly spread to other non-core operation such as cultural activities. Honda`s exit highlights just how awful the situation surrounding the auto industry is, said Koji Endo (analyst). Other team may follow, and Formula 1 may not be held in the future.

On the other hand, Toyota, which entered the F1 business in 2002 and is also struggling with tough business situations, denied speculation on that it may follow suit and exit F1.

In October, Honda slashed its sales outlook for the business ending next March to $11.6 from $12.13 trillion it projected this July. One primary cause is that vehicle sales in the U.S., the most profitable market for Honda, plunged 32% in November, the most since 1981.


II. Senators Push Bankruptcy Plan for the Big Three:

"A guy was dying, and he asked a doctor for help", he could live no longer than 25mn by himself. Surprisingly, "What kind of man you wanna be and how do you live your life?. Tell me in the next 5mn" the doctor ordered him. The available time decreased to 15 mn, and the guy tried to explained logically, rationally, in some ways, somehow.

The next hearing, "You can control my life, to some extent, when I decide to do something, your voice would be prioritized" poor guy responded. The doctor said "Let`s me think,...by the way, I don`t think you can survive". Time is too short to talk with the one who does not know how it hurts or how a person feel when he is dying, one can conclude.

Now what do you think about this short story?
My opinion, "That is B.S. " (not Bachelor of Science, anyway). If you wanna know what B.S. stands for, read the following article.

Adams

Washington: Desperate U.S. carmakers ran into a fresh obstacles from skeptical lawmakers (skepticism about the bailout appeared to be as stronger as ever) as they appealed with rising urgency - a new dose of humidity - for a $34 billion auto-industry bailout. "Without help, we`re looking at a death sentence." said Chris Dodd, Chairman of the Banking Committee. "We`re not going t leave town (Detroit) without trying to help." Chris Dodd optimistically told the executives of the Big Three.

With lawmakers in both parties pressing the automakers to consider a pre-negotiated bankruptcy - something they have consistently shunned - the B3 were mulling a government-run restructuring that could yield result similar to bankruptcy, including massive downsizing, in return for bailout.

Moreover, Congressional officials said Thursday that one leading proposal-to tap an approved fund set aside for making cars environmentally efficient - would not give the carmakers as much money as they say they need. "In all due respect, I don`t think there`s faith that the next...3 months will work out, given the past history," said Democrat Sen.Charles E. Schummer. Along-with, "No thinking person thinks that all 3 companies can survive," Republic Sen. Bob Coker (Tennessee) told the Congress.

However, House Speaker Majority Leader Harry Reid wrote to George W. Bush on Thursday asking him to use the $700 billion bailout fund to rescue the auto makers - something the administration has consistently refused to do so. They argued that such a course was justified because of potential grave harm to financial sector when one carmaker collapses.

Under legislation enacted in October creating the financial rescue program, Congress can vote to block the Treasury Department from accessing the 2nd $350 billion, although 2/3 supermajority of the congress is needed to do so over a presidential veto. " No matter how important the autos are to our economy, we don not want to put good money after bad. In other words, we want to make sure that the plan they (B3) develop is one that ensures their long-term viability for the sake of the taxpayer," Bush told NBC.

President-elect Barack Obama was keeping his distance, prompting Rep. Barney Frank, Chairman of the House Financial Services Committee, who has been dealing with both the financial bailout and the auto rescue program to say "Obama is going to have to be more assertive that he has been."

Repentant after a botched first crack at bailout pleas, the executive from General Motor Corp., Ford Motor Co. and Chrysler LLC all agreed (during the session) that a multibillion-dollar bailout deal would include a supervisory government board as well. The board could order major overhauls of the companies if deemed necessary for survival.

B.S. is "BULL SHIT"

(Source: Japan Times, December 6, 2008)

Let`s hear what Alan Greenspan wanna say !!

"It would be more beneficial and intersting if Alan Greenspan gave some feedbacks, responding to the Congress, in order to cool down the result of subprime outburst in U.S. which now the whole world is paying the price."

Adams

Wall Street Journal News Review (Oct. 24, 2008)

Alan Greenspan, former Federal Reserve Chairman, a prominent 18-year central banker, had fallen from the day when he was hailed for his contribution to the U.S. economy, as well as global economy as a whole.

Before the subprime crisis happened, low inflation and steady economic growth were achieved even American economy have been so far hit by dot-com bubble burst (2000-01) and the 9/11 terrorist attack. Moreover, for his stewardship in helping pull the world through financial crises, including the Asian Financial Crisis, Time Magazine called him part of the "committee to save the world."

Greenspan, on Thursday Oct. 23, conceded under harsh questioning form law makers that he made mistakes during his long tenure as the Fed chief that may have worsened the current economy downturn. In a four-hour appearance before the House Oversight Committee, Greenspan encountered legislators who interrupted his answer and tried to make him to admit that, at least in some ways, the present crisis would probably have never happened without his monetary policy of keeping short-term low-interest rates of 1%.

The former Fed chairman declared his "shocked disbelief" that financial institutions had failed to protect themselves from risks tied to subprime-mortgage related securities. At the hearing, "You had the authority to prevent irresponsible lending practices that led to the subprime crisis. You were advised to do so by many others. And now our whole economy is paying its price," said Rep. Henry Waxman, chairman of the House Committee. Sometimes, legislators caustically read back Greenspan`s own words from many years ago as evidence to prove that his predictions and policies had been wrong.

To response to Rep. Henry Waxman and the Congress, Greenspan said that "I was often following the will of Congress and did what I was supposed to do, not what I would like to do." Indeed, 35 years ago, Greenspan said that he never anticipated home prices could fall so much, and did not forecast a significant decline because significant depreciation in home values had never happened so far.

His confidence in the resilience of home prices shared by many investors at the time, but ultimately became a critical forecasting error. The belief encouraged more mortgage underwriting because lenders assumed that borrowers could always refinance or sell their homes for a profit if they ran into trouble. But 2.5 years after Greenspan left office, Congress was drawing plans to remake global financial regulation with the kind of tight government hand that he long opposed.

Then, early 2006 the Fed and financial intermediaries raised interest rates to deal with the mortgage-loan bubble (2004-05) in America. Some economists argued that it was an additional ingredient that caused financial instability and led to the current subprime crisis. On the other hand, Greenspan has spent much of this year trying to show his decisions were far less significant than external forces in causing the crisis. He firmly argued that a global saving glut was responsible for low interest rates worldwide, not just in the U.S. that contribute to a housing boom.

Logically and interestingly, his answer was that "We were wrong quite a good deal of time. Forecasting never gets to the point where it is 100% accurate. If the best experts were not able to foresee the development, I think we have to ask ourselves, 'why is that?'" Greenspan added. "And the answer is that we are not smart enough as people. We just cannot see events that far in advance." He stressed.

The treatment was striking contrast with Greenspan`s appearance before Congress as the Federal Reserve Chairman on November 3, 2005. At that time, "You have guided monetary policy through stock-market crashes, wars, terrorist attacks, and natural disasters," Rep. Jim Saxton, Republican of New Jersey, told him. Then he added "You have made a great contribution to the prosperity of the U.S. and nation is in your debt."

(Source: Wall Street Journal, Oct. 24, Greenspan Admits Errors To Hostile House Panel by Kara Scannell and Sudeep Reedy)

A New Life In Cambodia

Today, I came across an article "Californian finds new life in Cambodia" (International Herald Tribune, December 1, 2008) and found that it is an interesting one with inspired meaning.

At that time, I became thinking that in the future what can I do for my beloved country? You know what, when I was reading at the central library, Nagoya University, my tear came down from my eyes, maybe I am a little bit sentimental, when I tried to think and imagine about what has been written in that article.

Adams

International Herald Tribune News Review

Phnom Penh: The former gang member, Tuy Sobil, 30, known as K.K., has taken Cambodia street children (with the funny names, Frog, Homey,...etc.) under his wing as he teaches them the art he brought with him, breaking dance, as well as his hard lessons in life. K.K. is one of the 189 Cambodian refugees who have been banished from the U.S., from the past 6 years, under a law that mandates deportations for non-citizens who commit felonies.

Actually, he was an infant when he arrived; he was born in a refugee camp in Thailand, 1978, and then his family fled to America from Khmer Rouge "killing fields". He, who found a haven in America in 1980, is not an illegal alien, he is a non-citizen only by technicality of paperwork. It was due to K.K.`s parents, like so many other refugees, were unsophisticated farmers who failed to complete the citizenship process when they arrived.

Like some other children of poor immigrants, he drifted to the streets, where he joined a group of gangster, fortunately he could become a champion break dancer. It was not until being arrested for armed robbery, when he was 18, (you should ask yourself why?, I know the answer, I guess.), that he realized that he was not a citizen.

Like many deportees, he arrived in Cambodia without home, without family contacts, with nothing. With the support from international aid, for instance Bridges Across Border which based in Florida, he expanded the "Tiny Toones Cambodia", a break dancing club he founded , into a small school where street children can learn Khmer, English and computers in addition to back flips and head stands.

"Some were doing well initially but now over time have become unemployment or never get employed, and just get discouraged," said Dimple Rana, who works with Deported Diaspora (based in Massachusetts), that helps deportees to adjust.

"I think it was meant for me to be here, even though I lost my family. And my kid is there, Kayshawn. He`s 8. Right now, you know, these kids are my family....I adopted one, a street kid; his mom and dad are on drugs." K.K. said. Children leaping and spinning here on a hard linoleum floor are from poor and low education families, like thousands of Cambodian children who fill the slums and back streets of Phnom Penh, begging and digging through garbage to find food, he added.

K.K., whose childhood was not so different, says he teaches them to find pride in who they are. "I try to tell them not to judge people by the way they looked, I still have a struggle here in Cambodia. People see me with tattoos and think I`m a bad guy." he insisted.

His journey between identities reached a point of strangeness when he was invited to perform with his students at a last Christmas party at the U.S. Embassy in Cambodia, which he was warmly welcomed by the ambassador. "You are right that there is a certain wonderful irony to him being rejected or at least ejected from the U.S. and still standing on his feet - or shoulders and head - dancing,....K.K. is/was an American in everything except in law and he has shown this by his creativity, tenacity, and undying optimism." the ambassador at the time, Joseph Mussomeli said in an e-mail message.

Now another wonderful irony is in store for K.K. , his club have been invited so many times to perform in America. Thanks to K.K., Cambodian street-children, who do not speak English and have never been abroad, never been outside Cambodia, could have a chance to see the outside world, get to know how big the world is and begin to have a dream in their future.

"I can`t go, I can understand that they deported me here, I`d like to go visit - only visit, because I live here now, I have a brand new life." K.K. (Tuy Sobil) said, as his boys and girls jumped and bounced around him like tiny spins.

(Source: International Herald Tribune, November 30, 2008, Californian finds new life in Cambodia by Seth Mydans)