Jordanians hurt by global crisis

AMMAN, Jordan, Sept. 28 (UPI) — The economic crisis hitting many countries around the world has wiped out the savings of many investors in Jordan, officials said.

Officials believe about 300 companies were set up in the country to invest in foreign stocks and Jordanians invested a total of $700 million, KUNA, the Kuwait News Agency reported.

Prime Minister Nader al-Dahabi said he is in discussion with officials and members of parliament about legislation to provide additional protection for investors. In the meantime, hundreds of people fear they have lost all their savings.

Panicked investors have been waiting outside the offices of the companies.

One man told KUNA that he, his family members and friends had lost a total of $500,000. He said they used all their savings and mortgaged property in hopes of a high return.

A factory worker said she put all her savings into foreign stocks. She said the loss at her age meant she has no hope of ever achieving financial security.

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3 Comments

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3 responses to “Jordanians hurt by global crisis

  1. Siraddi

    This is a “ify” subject to call any judgments on until we see more details.

    Its unfortunate that some Jordan’s were effected “heavily” by the current crisis. I think its an opportunity now for Jordan to start educating its citizens about investing! We must realize a majority of individuals who invest are uneducated about many things, this is why they trust Investment Houses and Banks to invest their money. They put all their TRUST into individuals/organizations to make their money “grow”, which is fine, but they need to be aware of their risks and become comfortable in asking questions/reading fine-print before investing. I’m sure if we poll many Jordanians we will find that majority are highly unaware of the high risks and what it means for them “if” they were to lost their investments.
    I wonder:
    Are investors truly blind to the “risks” when investing? Are organizations and their representatives not explaining the pro/cons of investing? Are they making sure that individuals investors are “secure” (ratio-wise)…meaning can they afford to invest, for not everyone should invest, they must look at their personal liquidity in-house… etc…? There are too many questions that need answering. There are also many things that need to happen now …to reform investing… I think it is up to the government and investment organizations to do a better job at educating individuals on their investments (this is only right since all investment firms/banks take commission and fees for servicing Investors). I think it would be wrong for any organization to say its solely the investor’s responsibility when investing.

    Now…in the cases of those investment houses/firms that stole and misused/did not follow investment regulations when investing customer funds… they have a lot to answer to and they should be help responsible for their loses!! Now is the time when we are going to find out who was mishandling funds (Corruption). I have a zero percent tolerance for any form of corruption. Those found guilty and should pay the price.

    Please post follow-up articles if any … in re: to this subject and corruption findings w/ some of these investment firms. I am really interesting to hear what else comes to surface now that everything is hitting the fan!

  2. newsblog2you

    I guess it goes back to basics: Education and being informed is the key….

  3. visionofjordan

    I don’t think its just an education thing. Some people, and I believe it applies here, no matter how much they are educating, they will still take the risk in hopes of high return. Unfortunately, our society works a lot on gossip and talk. Very few people are willing to sit there, do the research and read, not just on this subject, but many.

    If you look at the investors in the Amman Stock Exchange (ASE), I will bet you that at the leat 50-60% of the people buying and selling the stocks really don’t do the research themselves: some rely on these research companies and investing companies, while others just go on advice from friends and rumors. That is why you see such volatile prices, most of the time with no solid reason to back them up.

    Unfortunately, maybe something like this has to happen (i.e. losing a big chunk of your savings) before you realize you need to get off your butt, do your own research, fully understand what you’re doing before doing it, and not trust everyone.

    Any follow ups on scam investment companies are appreciated, since I heard a little bit about that.

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