Philippine banks stable?

The Central Bank of the Philippines boasts that we have nothing to fear since local banks are financially stable despite global fears of a US recession. Economic advisers of Gloria like defeated Senatorial bet Ralph Recto says banks are "liquid" , meaning, they have money to spend and give out as loans to the people. Now, if these banks need some more funds, the BSP has enough dollar reserves to back them up.

Here we go again. They just simply don't get it.

What people fear about this US sub-prime crisis is its effects on the performance of the global economy. A slowdown will affect export production, and this will not spare Philippine industries. Yes, the US Senate already approved the $700 billion bailout and this will help mitigate the $1.7 trillion needed to slow the effects of a recession. Yet, companies in the States will be hard put accepting all these exports from us, simply because consumer spending will simply slow down due to recession fears.

I think this pronouncement is more political than anything.

Just to show the world, particularly the Philippine opposition, that the Arroyo regime has enough spunk, government is being used to allay fears of a definitive slowdown. When politics enters the policy-making functions of governance, it bodes ill to the people whom it vows to serve.