Market is experiencing some memories of the 2008 Global Financial Crisis when LEHMAN Bros went bankrupt on the 15 SEP 2008. In 2008, subprime mortgage loan was the cause of the crisis that lead to a domino effect of the Banking/Finance system. How did it happen? Lehman Bros was not rescue by the FED back in the year whereas AIG,CITIGROUP and BankAmerica were saved. We currently in the starting stage of a bear market as market has fallen more or close to 20% mark.
In the 3Q of 2014 to current 3Q of 2015, we are experiencing a prolong effect of CRUDE OIL(commodities prices) making new lows. In recent week, Commodities trader GLENCORE, BHP, RIO TINTO have been hit hard by slower growth in CHINA and USA; stroking market fears of further flight to safety. With no clear outlook of the commodities industries, further downgrades by CREDIT RATING AGENCIES(S&P or Moody) will crush their DEBT Refinancing Ratio(causing further ripple effect to their Cash Flows). This is what happening to Singapore Commodities Trader NOBLE GROUP. We hope all this negative impact will ride out smoothly to avoid another crisis.