Financial Crisis Weird Signal

1) Hot topic discussed during teh tarik session at Mamak restaurant yesterday is about the current financial crisis.
2) Interestingly our topic of discussion does not centered to why the crisis happen and how to the government is handling the crisis, but looking at different perspective, about the 'WEIRD SIGNAL' that this current financial crisis is sending to us? (I'm not really sure how we end up discussing this topic?)
3) To summarize, among the weird signal that market is sending in this financial crisis to us is that the commodities is no longer the safest place to put our investment during the stock and financial crisis. In '97 financial crisis, many people switched their shaky investment in stocks and assets to the commodities to store value, where the commodities act as the buffer and yield during downturn in assets and stocks porfolio
4) Second is the downslide effect in the price of gold, we consensusly agreed it should be the other way around. During the crisis, the gold price is normally sky high and people will normally switch their investment into gold to buffer their losses from the market uncertainty, but unfortunately in this current financial crisis this does not happen.
5) Third, the market bubble effect. People may looking forward to this period, because everbody will making money. But, the after effect issue is more devastated. The crisis will occur when the bubble is burst, like the subprime market bubble burst recently. The 97 Asian Financial Crisis is also due to the after effect of bubble burst in the market. Is there any way or system or mechanism, that we can avoid the bubble from develop. We think, it is wise if we do not allow the market to develop the bubble, because the impact is more worst than good.
6) The bail out scheme promoted by the US as we remembered clearly, when Malaysian Government begin to bail out the Malaysian companies during the '97 Asian Financial Crisis, we were critic badly by the western countries especially the US. We were accused of not being transparent, saving the big boys and cronies etc etc., but the move later appeared to be a success.
7) And now, the US government is following the same, by announcing the US$700 billion bail out incentive package. Suprisingly the market did not buy it.
8) We think, the US$700b is nothing to compare with the trillion dollar market that is affected
9) Second, the US$700b package did not specify who will getting the benefit most, market believe it will go to the big boys, friends and families. The real problem does not being addressed i.e the ordinary citizen who is affected most, which lost their property and become homeless. The ordinary people problem should be addressed first.
10) Third, how come the Lehman Brothers and many others before them, is allow to failed; but not AIG. Suddenly everybody is concern of the systemic effect if the US government allow AIG to failed. Who is inside AIG, who connected to who?
11) This is among the reason that we explored last night and I'm sure there's may more reason of why this US$700b incentive is a failure and the market does not buy the idea.
12) The extent and reach of this present financial catastrophe is yet to be seen. No one is sure how far it will go and to what extent. Only time will tell.