jus sitting there & wishing/hoping achieves nothing. it takes hard work, guts & guesstimate to line ur ducks together. when the "right place, right time" happens, it is yours

the moolah & all
whether u disagree with wat the govt is doing, do u hear of anyone complain they r jobless? hav u been thru the fear in ur own country during the 1997 financial crisis? fear of the future & seeing wat happen to the chinese in indonesia?
numbers does look impressive & the prices of everything going up means it is working. each & everyone (ostrich included) of us learnt the lesson from 1997 crisis, the key is to get ready & act once the hot money starts leaving
QUOTE(pockaroo @ Jun 14 2011, 02:06 PM)
The numbers does look very impressive. However I don't think it was because Malaysia is doing such a fantastic job attracting FDI. When the crash in 2007/2008 happened, every developed economic is printing money like mad to shore up their economies and banking systems. Most of the excess liquidity or hot money has not stayed in the US, UK or EU, instead it all rushed out everywhere in the world chasing returns on capital. From commodities, currencies to assets in emerging markets - stock markets, property markets, etc. China/BRIC and Southeast Asia, Latin America even South Africa are beneficiaries. The flip side to these is that they are also victims of price/asset inflation when the hot money rolls into town.
So while Malaysia is patting themselves on their backs saying good job. All emerging markets also have reasonably if not equally impressive FDI. I am not saying they are doing a bad job - but more because they are in the "right place, right time" rather.
thanx for explaining it in a detail manner for the layperson in lyn to understand. in a bubble, most things can be swept away. whether it wil be a soft or hard landing for tis bubble, no one knows. I'll line my ducks together & u can line yours. we live in interesting times & I foresee we wil hav a good bed time story to tell our cucu

hav fun!
QUOTE(GangHo @ Jun 14 2011, 02:05 PM)
I'll be very afraid if we rely too much on property and construction. If "Perfect Storm" were to come as predicted, all these will be swept away.
It is correct to predict that the economy would be collapsing in the order of Rate-->Share-->Job-->Car-->Prop
When the government senses any incoming trouble, the first thing they do is to control the rate through monetary policy and thus the Rate.
When the problem is beyond control, it will strike panic at the share market. Due to the volatile behaviour of the share market, the share holder is afraid that their share price will drop very quickly and therefore they quickly sell it all the shares they have. For the small share holder, it is easy for them to let go because it is not a huge investment. Note that if any company wants to sell any share, it takes only one day for the transaction to be perfected.
When there share price is going down, nobody would want to plan for the development or investment. Upstream companies would not announce any new project or investment and therefore it affects the down stream companies. Therefore they need to start firing people because production is reduced like wise the service is not needed. Note that it takes one month to three months to sack/fire a person.
When people is being sacked/fired, their biggest commitment is usually car/prop. Once they default payment, the bank would start to issue notice of default and threaten to take back the car. This process would normally takes another minimum 2 months for it to happen. When given choice, people would want to retain their property rather than the car because there are other means of transportations when there is larger penalty if you default in a mortgage payment.
Lastly people let go of their house/property. If the situation is very bad, lots of people would be selling their house in the same time. When the market is flooded with auctions houses and cheaper property prices, it is not easy to get buyer and cash is the king. People would take their time to make decision because they are spoiled with lots of offers. And since property is always deem to be a valuable investment of all time, there would always be people that are willing to buy and thus support the price. Nevertheless, it really takes time for any one deal to be perfected at the tough time.
All in all, I believe that it is logical and correct to predict that the market should be collapsing in the manner as stated above. However, finance and economy is not that straight forward and simple as we want it to be. Not even the smartest in the world is able to relieve the richest country out of the trap of the financial crisis.