Some indications of great economic depression

Does it feel like 1931 again?
EIGHTY years ago, the Creditanstalt, a bank founded by the Rothschild family, was declared bankrupt. Some say the demise of Creditanstalt eventually led to the banking crisis of the Great Depression.

In the words of the current US Federal Reserve head Ben Bernanke: "I think perhaps the most critical in May of 1931, the Creditanstalt, which was one of the largest banks in Europe, failed, which generated a wave of financial crisis around the world.

"Up till early 1931, arguably the 1929 downturn was just an ordi-nary - severe but ordinary downturn. It was the financial crises and the collapse of banks and other institutions in late 1930 and early 1931 that made the Great Depression great."

Bernanke said this in a 2009 conversation with the Council of Foreign Relations.

Today, the world is at a tipping point again as the small European debt problem involving Greece, which first emerged in late 2009, has snowballed into a full-blown crisis.
There have been murmurs that some of the big European banks are exposed to large amounts of toxic debts and are having problems raising capital.

The crisis, which started in Greece, has spread to Portugal, Spain, and Italy. Some say it will soon hit the shores of France and even Germany, the continent's strongest economy.

Germany's banks are today the most highly leveraged, a massive two and a half times more leveraged than their US banking peers, according to the International Monetary Fund.

Just this week, former British prime minister Gordon Brown wrote that Germany must stop the blame game and save the eurozone.

Brown opined in the Christian Science Monitor: "It is also time for Germany to acknowledge that it must be integral to solving the problem because it has been integral to the problem itself."

Central banks today generally work together, making a 1931-style financial crisis remote, yet the longer the market is uncertain of the health of European banks and the recapitalisation plan in place, the more the fear will breed more fears.

In a year in which the world had seen a tsunami shatter Japan, a civil war in oil-rich Libya, and an earthquake in the US when the Dow Jones was starting to rally, the omens from above are hardly confidence boosters.

Thus, if it feels like 1931 again, then one should expect what is ahead.

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Masterskill 3011 Q2 pre-tax profit shrinks

Masterskill Education Group Bhd's (MEGB) pre-tax profit for the second quarter ended June 30, 2011 fell to RM10.565 million from RM25.723 million in the corresponding quarter last year.
Revenue fell to RM65.785 million from RM77.113 million in the same quarter last year, it said in a filing to Bursa Malaysia today.
"The decrease in revenue is mainly attributed to the lower student enrolment during the first half of 2011 compared with the corresponding period last year," it said.
For the half year, its pre-tax profit dropped to RM35.444 million from RM57.777 million in the previous year.
Its revenue rose to RM139.469 million from RM154.153 million previously.
Its group chief executive officer, Datuk Seri Edmund Santhara, said MEGB's performance for the first half was expected as it was in line with the overall challenging market environment for this year.
He said Masterskill would continue to focus on three core areas -- student population, course/curriculum offerings and campus expansion -- to drive the group forward in delivering long-term profitability and sustainable growth. -- Bernama


Read more: Masterskill Q2 pre-tax profit shrinks 
Published: 2011/08/26
http://www.btimes.com.my/Current_News/BTIMES/articles/20110826215409/Article/#ixzz1W9eafb4q

Someone we can not ignore - Steve Jobs

Apple’s Board of Directors today announced that Steve Jobs has resigned as Chief Executive Officer, and the Board has named Tim Cook, previously Apple’s Chief Operating Officer, as the company’s new CEO. Jobs has been elected Chairman of the Board and Cook will join the Board, effective immediately. “Steve’s extraordinary vision and leadership saved Apple and guided it to its position as the world’s most innovative and valuable technology company,” said Art Levinson, Chairman of Genentech, on behalf of Apple's Board. “Steve has made countless contributions to Apple’s success, and he has attracted and inspired Apple’s immensely creative employees and world class executive team. In his new role as Chairman of the Board, Steve will continue to serve Apple with his unique insights, creativity and inspiration.”
“The Board has complete confidence that Tim is the right person to be our next CEO,” added Levinson. “Tim’s 13 years of service to Apple have been marked by outstanding performance, and he has demonstrated remarkable talent and sound judgment in everything he does.”
Jobs submitted his resignation to the Board today and strongly recommended that the Board implement its succession plan and name Tim Cook as CEO.
As COO, Cook was previously responsible for all of the company’s worldwide sales and operations, including end-to-end management of Apple’s supply chain, sales activities, and service and support in all markets and countries. He also headed Apple’s Macintosh division and played a key role in the continued development of strategic reseller and supplier relationships, ensuring flexibility in response to an increasingly demanding marketplace.
Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices.

The Wall Street Journal published a letter from Steve Jobs announcing his resignation:

PRESS RELEASE: Letter from Steve Jobs
August 24, 2011–To the Apple Board of Directors and the Apple Community:

I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple’s CEO, I would be the first to let you know. Unfortunately, that day has come.

I hereby resign as CEO of Apple. I would like to serve, if the Board sees fit, as Chairman of the Board, director and Apple employee.

As far as my successor goes, I strongly recommend that we execute our succession plan and name Tim Cook as CEO of Apple.

I believe Apple’s brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role.

I have made some of the best friends of my life at Apple, and I thank you all for the many years of being able to work alongside you.