World In Turmoil
I am from Malaysian and Emigrated to Sydney Australia sometime back , born in Seremban , Hung around Teminang rasah , studied in Petaling jaya, later in Kuala lumpur , worked in Malaysia and Singapore (briefly) and now having visited some countries around the world decided to pitch "tent in sydney" - having a general interest in happening and reading frequently the regular sides like Malaysia kini, samachar, economist , financial times and etc etc
Well the world is deep shit - crudely put
What does Aust Do
- Declare more stimulus package, keep construction industry alive - current hole in the economy AUD 115 Billion, mind you titanic is yet to hit the bottom
What does Malaysia do
- So weeks ago they have RM 6 Billion package of rescue and a further RM 5 billion for Provident Fund to back the stock market particular government link companies
similar strategy - keep jobs alive, keep construction industry alive
what does America do
this is surely one the popular Internet pastime now with cnn and all
many many stimulus package s starting from USD 700 billion and they are giving more- saving banks etc
more or less - every body is doing similar actions
saving banks (depositor money they call it)
saving jobs and in particular key local industries like cars in America,wall street, in Malaysian stock exchange, construction , SME, in Australia - construction, cars as well
In Summary - every body wants to spend their way out of this trouble
Now simple questions
1) Are we spending wisely - some basic cushion to a soften the landing of economy is required - but some of bad investments will probably need the crash landing it deserves - example if in America , Obama gives back eg 100 B, but they have now take 30 B for top executive salaries, why did i not remove these guys within confines of existing law and then inject the required 100 B. In latter case i only have 70 B( as 30 B has gone into pocket)
2) Why is Malaysian for instance using Provident Fund money - hard earned money for retirement of people without question - have we wasted enough money in speculation - in Stock market, in For ex, In derivatives and other speculative methods and now are trying hard to plug the hole
3) How did we all collectively around the world land here in the first place
i) We speculated, on stocks , bonds and commodities
ii) bought and sold into the future '
eg 1 sack of rice is $10 today in 25 yrs time the trader say is it worth $100 based on project demand". Owing 25000 such bags sack of rice , backed by bank loan , i am now projected worth at 250000, and i had borrowed 150 000 from the bank
the plot now gets interesting
after collapse the sack of rice is now worth $4, mmmmm what did i actually lose $ 96 or $ 6 per sack. How much do i owe the bank.. Lets say i cannot pay - the bank can bankrupt but still not recuop the say - lets say the only 100 000
imagine in a day around the the financial markets around the world we have 10,000 such traction per country and 100 countries did this - so the world banks on collapse would have lost 100 x 100 000 x 10 000 = 1 00,000,000,000
Is it even now a wonder to us if NYSE lost US 7 trillion in those 2 short weeks
Now come back to individual - he lost (6 bucks in reality + interest ) x 25 000
Btw 150 000 to may a few quadruples to this and how many such traders are there
the point i am making : we lost really money chasing a factious value - if speculation was curbed restricting financial institutions and traders and investors from exceeding certain cap limits and having different stop , re group and re open market giving proper rest period btw turmoil - we might have limited the ability for such free fall but as one friend of mine put it " IT TAKES THE FUN OUT - WE CANNOT GET RICH QUICK"
But when did this happen - can there be fruits without Labour, with long sustained effort, backed by real goods , real services, a commodity trade able which can re coup if there was lesser activity in economic cycle
Well OUR GREED got the better of all us - many of our pensions funds are invested in such speculative instruments , backed by loans
and now we are wondering - if government gave packages , loans etc , may be can jump star the economy again
Well Sorry Mate: We need more leadership , especially thought leadership and the answer is not throwing more good resources and money are IL spent youth of Bad economist habits
Government need to build and invest in longer and sustainable measure -apart from the immediate stimulus's packages which crucial to give soft blow
at the moment STIMULOUS is all We seek, Quick gratification, like Quickies in Sex,
We need longer Orgy's mate - so that the the Wonderful Endorphins released in the brain carries with us a longer feeling of happiness
serious all our leaders, Rudd, Najib, Obama - all need to do better for the countries
and as a Collective , G7 + 2 , OE CD 20 countries - need to meet and formulate a collective action
1) Regulate and provide more transparency - Stronger SOX like Measures to help people make investment decision better
2) Cur be speculative trade
3) Re define USD Dollar value, Gold, Petrol and etc
basically a new Breton Woods is needed
So where are the leaders,. well they are all disappearing in comfort zone actions..........
Unless there a local country action and also global collective ACTION - it is fun and games for the common Joe, Ahamad, AhChong, Arumugam, and rest of the A
We are in for a longer ride - primarily the lack of Leadership
Well the world is deep shit - crudely put
What does Aust Do
- Declare more stimulus package, keep construction industry alive - current hole in the economy AUD 115 Billion, mind you titanic is yet to hit the bottom
What does Malaysia do
- So weeks ago they have RM 6 Billion package of rescue and a further RM 5 billion for Provident Fund to back the stock market particular government link companies
similar strategy - keep jobs alive, keep construction industry alive
what does America do
this is surely one the popular Internet pastime now with cnn and all
many many stimulus package s starting from USD 700 billion and they are giving more- saving banks etc
more or less - every body is doing similar actions
saving banks (depositor money they call it)
saving jobs and in particular key local industries like cars in America,wall street, in Malaysian stock exchange, construction , SME, in Australia - construction, cars as well
In Summary - every body wants to spend their way out of this trouble
Now simple questions
1) Are we spending wisely - some basic cushion to a soften the landing of economy is required - but some of bad investments will probably need the crash landing it deserves - example if in America , Obama gives back eg 100 B, but they have now take 30 B for top executive salaries, why did i not remove these guys within confines of existing law and then inject the required 100 B. In latter case i only have 70 B( as 30 B has gone into pocket)
2) Why is Malaysian for instance using Provident Fund money - hard earned money for retirement of people without question - have we wasted enough money in speculation - in Stock market, in For ex, In derivatives and other speculative methods and now are trying hard to plug the hole
3) How did we all collectively around the world land here in the first place
i) We speculated, on stocks , bonds and commodities
ii) bought and sold into the future '
eg 1 sack of rice is $10 today in 25 yrs time the trader say is it worth $100 based on project demand". Owing 25000 such bags sack of rice , backed by bank loan , i am now projected worth at 250000, and i had borrowed 150 000 from the bank
the plot now gets interesting
after collapse the sack of rice is now worth $4, mmmmm what did i actually lose $ 96 or $ 6 per sack. How much do i owe the bank.. Lets say i cannot pay - the bank can bankrupt but still not recuop the say - lets say the only 100 000
imagine in a day around the the financial markets around the world we have 10,000 such traction per country and 100 countries did this - so the world banks on collapse would have lost 100 x 100 000 x 10 000 = 1 00,000,000,000
Is it even now a wonder to us if NYSE lost US 7 trillion in those 2 short weeks
Now come back to individual - he lost (6 bucks in reality + interest ) x 25 000
Btw 150 000 to may a few quadruples to this and how many such traders are there
the point i am making : we lost really money chasing a factious value - if speculation was curbed restricting financial institutions and traders and investors from exceeding certain cap limits and having different stop , re group and re open market giving proper rest period btw turmoil - we might have limited the ability for such free fall but as one friend of mine put it " IT TAKES THE FUN OUT - WE CANNOT GET RICH QUICK"
But when did this happen - can there be fruits without Labour, with long sustained effort, backed by real goods , real services, a commodity trade able which can re coup if there was lesser activity in economic cycle
Well OUR GREED got the better of all us - many of our pensions funds are invested in such speculative instruments , backed by loans
and now we are wondering - if government gave packages , loans etc , may be can jump star the economy again
Well Sorry Mate: We need more leadership , especially thought leadership and the answer is not throwing more good resources and money are IL spent youth of Bad economist habits
Government need to build and invest in longer and sustainable measure -apart from the immediate stimulus's packages which crucial to give soft blow
at the moment STIMULOUS is all We seek, Quick gratification, like Quickies in Sex,
We need longer Orgy's mate - so that the the Wonderful Endorphins released in the brain carries with us a longer feeling of happiness
serious all our leaders, Rudd, Najib, Obama - all need to do better for the countries
and as a Collective , G7 + 2 , OE CD 20 countries - need to meet and formulate a collective action
1) Regulate and provide more transparency - Stronger SOX like Measures to help people make investment decision better
2) Cur be speculative trade
3) Re define USD Dollar value, Gold, Petrol and etc
basically a new Breton Woods is needed
So where are the leaders,. well they are all disappearing in comfort zone actions..........
Unless there a local country action and also global collective ACTION - it is fun and games for the common Joe, Ahamad, AhChong, Arumugam, and rest of the A
We are in for a longer ride - primarily the lack of Leadership