US auto bailout sparks Asian stocks - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

US auto bailout sparks Asian stocks

Dec 22, 2008

Asian stocks advance
After ending last week with gains that were the best in a week since August 2008, the Asian markets have opened today on a mixed note. While stocks in Japan and Singapore are trading in the positive, losses are seen in China and Hong Kong.

Gains in stocks in the region are seemingly a result of the US governmentís pledge of US$ 13.4 bn rescue plan for the Big-Three automakers - GM, Ford, and Chrysler. While this shall see these companies survive in the immediate future, will it be enough? Not at all!

In fact, as CNN reports, "This lifeline won't solve the immediate problems dogging the entire U.S. auto industry. Tight credit and a weakening U.S. economy have left industry-wide auto sales at their weakest point in 26 years."

Bad accounting gains prominence...yet again
Global accounting firms are back in action, and once again for bad reasons. In the US, these firms are being questioned for participating in the Ponzi scheme of Bernard Madoff, which is being touted as the worst the capitalist world has ever seen. The New York Times reports that the big accounting firms (like PricewaterhouseCoopers and KPMG) oversaw many of the feeder funds that funneled billions of dollars into this scam that has led to losses of US$ 50 bn to investors, large and small.

Some of these firms are facing troubled times in India as well. One of these - Ernst & Young (E&Y) - is facing the heat from investors for the generous valuations that it calculated for Maytas Properties, an infrastructure company promoted by a son of the Chairman of Satyam Computers. E&Y is incidentally the chief auditor of Satyam as well.

As reported in The Economic Times, the valuation for the US$ 1.3 bn deal was calculated as Rs 10 m per acre of land that Maytas held. This is when the price of land in Hyderabad (where Maytas has its interests) is quoting at not more than Rs 1 m per acre.

Itís time these accountants clean up the mess they have helped create with their unethical practices and overlooking of bad corporate decisions. If they do this, i.e., clean up, it will do a world of good to get investor confidence back to the market.


Equitymaster requests your view! Post a comment on "US auto bailout sparks Asian stocks". Click here!

  

More Views on News

IDFC Mutual Fund Starts Campaign 'SIFI'. Should Buy Into the Idea? (Outside View)

Sep 23, 2020

IDFC Mutual Fund is taking the road less travelled and hence started a campaign SIFI (SIP in Fixed Income) to promote the concept of SIP for its debt funds investors.

My View on the IPO Market (Fast Profits Daily)

Sep 23, 2020

In this video, I'll share with you my thoughts on the recent spate of IPOs and what it means for the market.

I Believe These Stocks Will Deliver the Most Outsized Returns in 2021 and Beyond (Profit Hunter)

Sep 23, 2020

Rules of the racetrack can help you bag the biggest gainers of the coming decade.

An Important Hurricane Update for Energy Traders (Fast Profits Daily)

Sep 22, 2020

In this video, I'll show you how the extended hurricane season in the US will affect traders in crude oil and natural gas.

Mutual Fund Investors Will Now Be Allotted Units Based on NAV of the Day AMCs Receive Funds (Outside View)

Sep 22, 2020

PersonalFN explains how SEBI's new circular on mutual funds impact investors.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Sep 23, 2020 (Close)

MARKET STATS