Dateline: October 16, 2008 at 18:20 from Kuala Lumpur Malaysia

Greed is Good - An Economically Responsible Attitude and Posture! Or Isn't It!

The following writings represent personal views and does not represent any financial advise for the purposes of investment decisions.

Since the last article, "The 100 Dollar Mark and the ER - Economic Responsibility!" I have refrained myself from writing what has been written by other respected practicing economist and I reckon it's time for the Rat to speak his mind again.

The reverse is happening now to the price of oil; it's moving downwards and if one was to take the real demand and supply equation and the real sufficiency of oil in the ground, you will discover that the real fair price of oil should be averaging in the range of USD35 to USD40 per barrel. This has taken into account the present day value of money rising overtime.

The Rat has been advocating a Responsible approach in every business decision taken and a holistic view of its impact on society on the whole must not be forgotten.

The practise of rewarding risky behaviour has brought us to this irresponsible situation whereby such actions have bankrupt not only ourselves but for generations to come; this has become our legacy that we leave our children with.

Now, how Responsible is that!

Every action, every word and every promise that we make must be a Responsible one that has positive long lasting effect. The longevity of our economic wealth has and must be sustainable. Somehow, history always seems to repeat itself and we seem to want to ignore the lessons of the past.

The "Greed is Good" and "Profit at all Cost" mantras and mindset are so prevalent that it clouds our good judgement. Such behaviours do not bring sustainable results for a variety of reasons.

What is missing is the sustainable practice of doing the right things for the right reasons; it all starts with the motives behind the reasons and we always betray ourselves with our greed.

Here's what I wrote in my last article "The 100 Dollar Mark and the ER - Economic Responsibility!" that is still relevant in this present circumstance especially on the part about Economic Responsibility.

"The reality is that Economic Responsibility ("ER") practices by the general capital market community is severely lacking.

From the sub-prime crisis in the USA to the rich divide between developed and developing nations, we don't seem to have the propensity to learn from our mistakes. Perhaps it's blindness that is preventing us from learning from the mistakes made.

Economic Responsibility ("ER") is basically a call to do the right thing for the good of the economy in delivering its goods and services in an affordable and responsible manner to its children of the world so as to enrich and bless their lives.

Although the capital markets are responsible to deliver returns to investors, its responsibility is also extended to the manner in which it is done. There is nothing wrong with reporting record breaking after tax profit returns.

Financial modellers and economist can predict, in free market enterprise models, with a fair degree of probability the movement of prices, its possible societal consequences and its compounding effects on the global economy.

This would suggest that the capital market players are in a position of influence, and with the combined billions and the basic principle of demand and supply to bring about a state of perceived equilibrium; they would need to behave responsibly in the way the make and earn their money.

Capital market players need to exercise a fair degree of responsible behaviour and exude confidence to ensure that the bigger picture of global economic wealth is created responsibly and can be sustained.

The ability to sustain returns consistently to enrich the lives of the human race is paramount in bringing about the social economic harmony that we all need and crave for.

And that we can all do in an Economically Responsible way.

At least the CSR promise is made good."

So, will the price of oil hit and surpass the 40 US dollar mark and perhaps sustains itself at a lower level? The question will be when and this time, this is a responsible price level.

Disclaimer: Readers are advised to do their homework, analysis and conclusion for their own investment needs. The views of the writer is purely personal and do not form the basis to be used for any financial dealings. Trained in business, accounting and finance, the writer has been a keen observer of world economic events and has chosen to share his personal views.

Feature Articles updated daily from - MagPortal.com

Poor Boy, Long Ways from Home (The Bacolod Blues?) This month’s Pearl column free associates about the author’s recent trip to Sugarlandia, down Bacolod way, home to mucho intrigue, strange goings-on, primordial cockfights, and aswangs, including a visit to a sugar plantation, coming face-to-face with poverty at ground level, and flashing back to youth while taking a siesta in a hammock a few meters from a rocky beach overlooking the Guimaras Straits…

The Coming Home of the Dragons Although the phoenix can fly high and far, and beyond most hunting tools' range, creating an attractive nest for them would enable one to lure in these graceful, powerful and most sought after birds. For thousands of years in China, home has been an important political and management tool used by the emperors and governments to lure overseas Chinese back to the motherland.

Random Multicultural Juxtapositions and Flashbacks, 2006 Edition Our erstwhile ex-pat in Manila, Clarence, doesn't write as many Pearl columns as he used to, but his many regular readers are always happy to see a new one. In this month's column he ruminates about parallels between the island of Negros and the hills of home, monks playing basketball in the woods, and the ongoing realities of poverty in the Philippines.....

Meet Me in Saint LouisDecember's "Pearl" column provides a historical flashback to the Spanish-American War, the early days of American colonialism in the Philippines, and the 1904 Saint Louis World's Fair with its pervasive cultural images of Filipino dogeaters and headhunters..."the more things change, the more they stay the same"

The New Workers are in TownThe economies of the world - local and global- have evolved a new gene pool of workers who now populate every conceivable business hub on earth. These economies have induced a diaspora of some sort sending Indian software engineers to the Western world, and Philippine nurses to staff-starved health care institutions in industrialized nations.

Tipping Points and Social Volcanos Things were looking pretty tough for GMA Friday afternoon, especially after Cory (wearing yellow, natch) called for her resignation. Support was crumbling and the word on the street was that she was hanging by a thread – several pundits used the term “tipping point” to refer to the delicate balance and the fact that, at a certain point of intensity and melodrama, the whole GMA edifice must come tumbling down. The general consensus was that she was rapidly becoming toast and that all the king’s horses and all the king’s men would likely be unable to put the country back together again.

Well, after a hiatus of nearly a year, our intrepid columnist from the Philippines has finally come out of the woodwork promising to reinvigorate "Pearl of the Orient Seas." Word on the street has it that he was (pick one) being held hostage in a cave somewhere down in Mindanao, tied up with top-secret negotiations, or placating a difficult mulltinational client at a mountaintop retreat. Whatever the reasons for his abence, Clarence Henderson returns with "Phoenix from the Ashes," in which he promises to return to the fray and once again pen Pearl columns, this time with a broader Asian regional focus. Let's just hope he doesn't forget how to weave in those terrible puns and half-remembered fragments of old rock and roll songs when we least expect it...

Listening, the Doorway to Employee Commitment This article explains how correctly listening to employees causes them to become committed to their work and thus to unleash their full potential of innovation, productivity and motivation.

Muddling Through (or Not): Mid-2004 Update on the Philippines Looks like the Philippines, despite itself, has survived the election without excessive violence, major civil unrest, or untoward People Power eruptions. GMA finally has that elusive electoral mandate, and the air of uncertainty that pervaded Manila in the weeks leading up to the election has given way to (for some) an air of cautious optimism or (for others) resignation that nothing ever changes much in the Philippines and that the strong leadership and fundamental changes needed to save the country are long shots.

The New Customers Are In Town Today's customers are increasingly demanding, in Asia as elsewhere in the world. Henry Astorga describes the complex reality faced by today's marketers, which includes much higher expectations than we have been used to. Today's customers want performance, and they want it now!

Bridge Story - A Tale of Two Dragon Cities For first time visitors to China, one of the most stunning entry points is Shanghai. The view from the mouth of the Yangze River, which looks out over Shanghai and other cities, reveals an incredible urban and industrial panorama, clearly one of the most rapidly developing areas among all the cities of the world. And yet . . . The Chinese have described themselves as "A plate of scattered sand grains" that would never join or unite with each other. Piset, in his latest Awakening Dragon column, tells the story of Two Bridges to illustrate just some of the underlying dynamics of China's explosive economic growth.

Oldsmobile: The final parking lot Why General Motors dropped the Oldsmobile. The four brand paradoxes GM had to face - the name, the product, image re-positioning, and the consumer - all added up to a brand that had little hope of rebranding.

Best Cities in Asia for Living Chiang Mai is the surprise leader in the newest category of the APMF Asian Business Travel Survey, nudging out Singapore, Kuala Lumpur, Bangkok and Hong Kong as the most livable city in Asia. Add your vote and reasons to make your opinion count. Our Best Airlines survey has also surpassed the 1,000 respondent mark, with Cathay Pacific extending their lead over Singapore Airlines.

What are the best cities for business in Asia? One of our new categories in the APMF Sense of Place survey is for best Asian business city. After a couple of days, Singapore leads the pack, followed by Bangkok, Thailand and Hong Kong. Enter your vote and comments and make your views count. More new categories include best city for livability, and best tourism destinations.

Which are more valuable - your brands or your customers?

Yahoo! vs ebay in Asia: Who Needs Desparate Housewives?

Feed Branding. The Next Wave?

The Demise of Positioning