On November 26, 2008, the explosions at two Bangkok airports provoked the closure of its main international gateway, which is a major center in the region for travelers. These explosions in airport are done by thousands of anti-government protesters to object the return of Thai Prime Minister Somchai Wongsawat from the APEC summit held in Peru. The PAD (People’s Alliance for Democracy), which is an anti-goverment group, has been conducting protests against the government, for being a reason for expelling former Prime Minister Thaksin Shinawatra. Protesters surrounded the parliament building on Monday, forcing lawmakers to postpone their session. Incoming flights have been diverted to other airports around Thailand and the region and the helpless passengers are made to fly out by other means. The closing of Suvarnabhumi and Don Mueang airports from November 25 to December 4 stopped 3.4 million tourists from visiting Thailand. There is a huge loss in many sectors. There is loss of 120 billion baht (currency of Thailand) (4.75 billion dollars) in the service industry, 90 billion baht (3.56 billion dollars) in logistics and 60 billion baht (2.38 billion dollars) in industry (ANI). The continous political crisis has frustrated government from decision-making and weakened investor faith in Thailand’s economy.
November 23, 2009
Explosions at Airports in Thailand Created Political Crisis
Somali Pirates Hijacked the Largest Oil Tanker
On November 17, 2008, the U.S. Navy announced that Somali pirates had hijacked the Sirius Star, a Saudi-owned supertanker loaded with crude oil. The attack occurred on November 15, approximately 450 miles off the coast of Kenya. It has 25 crew members boarded in the ship and was sailing under a Liberian flag. It is the largest ship that is ever captured by pirates. It is owned by Saudi oil company Aramco. It is 1,080 feet long – nearly equal to the length of an aircraft carrier – so it is considered as one of the largest ships to sail the seas. The capacity of Sirius Star ship is nearly 2 billions barrels of oil. Somali pirates have captured several ships off the Horn of Africa in the past, but the hijacking of a supertanker created sensational news. The pirates are trained fighters, usually dressed in military attire, using speedboats or racing boats provided with satellite phones and GPS equipment. They are mostly armed with automatic weapons, anti-tank rockets launchers and various types of grenades. They collected nearly 300 million dollars in the year 2008 by hijacking ships. The Ship consists of 25-member crew from various nations like Croatia, Britain, Philippines, Poland, and Saudi Arabia. The ship and crew members were released on January 9, 2009 only after paying of $3 million in bribe.
Finally, Kosovo was Declared Independent from Serbia
In February 2008, the parliament of Kosovo, Serbia’s southern province with racial Albanian majority was declared independence. The province has been under the administration of U.N. and protected by NATO (North Atlantic Treaty Organization) troops since a 1999. The independence of Kosovo is supported by United States and superior European nations, including France, Britain, and Germany but was reluctantly opposed by Serbia and Russia as they feared that this can encourage separatist movements by other countries. Serbia considered Kosovo as beginning of their civilization, so did not accept Kosovo’s independence on its neighborhood. But in Kosovo, majority of people are Albanian, they opposed the discrimination of serbs on them and wished to have separate democratic province. The Protesters in Serbia argued with police outside the U.S. Embassy in Belgrade after the release of declaration. In Pristina, capital of Kosovo thousands of people large masses of people gathered in streets earlier to Sunday’s parliamentary declaration and it is followed by singing, dancing after Prime minister of Kosovo Hashim Thaci announced the independence. A 100-foot-long birthday cake was laid on Pristina’s main street. Hundreds of people celebrated this moment by waving Albanian flags in Times Square. Kosovo government has clearly announced its readiness and its desire to support rights of Serbian people in Kosovo.
Fall of Wall Street had Huge Impact on Economy
The most sensational two days in Wall Street’s history are, on July 28, 2008 when Merrill Lynch agreed to sell itself to Bank of America for roughly $50 billion to reduce increasing financial crisis and on September 15, 2008 when another famous securities firm, Lehman Brothers, filed for Chapter 11 bankruptcy protection. These incidents affected the broader economy, which has been declining firmly as the financial crisis has aggravated over the last year, this led to the increase of unemployment and in turn slowed down nation’s growth rate. They ended up a weekend with distress and with continuous discussions, as Wall Street bankers gathered in meetings at the order of Bush administration officials to take decisions to avoid drop in the markets rising from a crisis of confidence. Because of the crisis, US government had requested the remaining two major investment banks Goldman Sachs and Morgan Stanley to convert themselves to be commercial banks. The Bush administration rushed to pass a $700 billion rescue of financial firms. The consequences of Merrill Lynch and Lehman Brothers would not seem to be connected, Merrill has the nation’s largest brokerage force and its name is famous in towns across America, while Lehman’s main customers are big institutions. But during the credit prosperity both firms piled into insecure or sensitive real estate and ended up severely damaged, with inadequate capital and toxic assets.
Bankruptcy of Lehman Brothers is recorded as the largest one
On September 15, 2008, Lehman Brothers filed for Chapter 11 bankruptcy protection. The bankruptcy of Lehman Brothers is considered as the largest bankruptcy filing in U.S. history with Lehman holding over 600 billion dollars of property. Lehman experienced an unusual loss due to the continuous real estate and financial crisis. The impact of Lehman’s bankruptcy is severe. It is expected to cause some reduction in the price of commercial real estate. Lehman experienced pressure to sell securities in commercial real estate to liquidate (to get cash) its properties. Several money funds or mutual funds and institutional cash funds had done serious hazard to Lehman as there is fall in the share value to below $1 for the banks like Bank of New York Mellon and the Primary Reserve Fund which are involved in institutional cash fund and money-market fund respectively. Apartment-building investors are also expected to experience pressure to sell properties, as Lehman discharges its debt and equity of $22 billion. The degraded moves which transformed the outlook of American finance marked the restless chapter in the year 2008. The once-proud financial institutions had been collapsed, as a result, loss of hundreds of billions of dollars is occurred because of bad mortgage finance and real estate investments.
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