the year country goes bankrupt? not so soon, i hope.
seriously, that word is coming out more frequently now, and it's not about greece.

It will not be that soon, because we are lucky to have Petronas, If not we are just like Indonesia now. But Indonesia is doing very well now, better then Malaysia.

What Jala said is actually possible happen to Malaysian, if we continue what we do now with all the government debt and house hold debt.

Since the American sub prime crisis, the US already bankrupt, they are the most debts country, but because of political issue they cannot announce that they are bankrupt like Greece.

The concern is Malaysia household debt, our Bank Negara Zeti said that it is still manageable, if it is manageable it will not be on the news. I personally think that it is a big concern to the government.

Our household debt is higher then USA!!!!

"There are strong indicators to suggest that house prices and ability to service housing loans have been overstretched in Malaysia." S.M.Mohamed Idris

Household debt in Malaysia – Is it sustainable?

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Added on November 2, 2011, 3:39 pmJonathan comment:

"Has the property bubble burst...? Or is it about to burst....200K house in KL being sold for 600K....and for Bank Negara ..its normal????

Common sense dictates the collapse in Malaysia is imminent.....brace yourselves....and the culprits....our government and our banks again....."

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Added on November 2, 2011, 3:50 pmJust get info from my colleague, the bank called to get pay slip from credit card owner. Bank Negara has set a rule to bank not to simply give out credit. Bank Negara is very concern now.

This post has been edited by kelvinfixx: Nov 2 2011, 03:50 PM

I agree that American owes the world lots of money. However, they are not bankrupt until they default in payment.

In this world no matter how much you owe, as long as you are able to pay before the due date you will be spared from bankruptcy.

Party A might owe bank 10Mil, but he has lots of people standby to pay for him if he gets into trouble.

Party B owes bank 50K but he has no support when he get into trouble.

In the end, party B has to declare bankrupt.

And if party A is able to pull it through and makes money out of later investment, he repays all the debts and still have surplus.

This is applicable in housing loan as well. Back up must always be there. If people trust you and your turnover is big, there is no worries. Same thing with America, people believe that they will always be able to pay.

usa control the world of information & technology (IT).... fb, ms, google, iphone, ibm, cisco,.... how about us... cambro?

You don't understand what is bankruptcy for country. (There is no such thing "announce bankrupt")
US never will be bankrupt if everyone is using USD.
And country cannot be "bankrupt", they only defaulting the bond/loan only.
Country still there, still operation, just the old debt, cannot be paid (this is what we called default).

If BNM doesn't set rule or tighter rule and need pay slip for credit applicant, we should be more worry.

A property 10 years ago was 200k, do you expect it still to be 200k, when price of goods, and everything else, like oil, copper, has double, quadruple, even hiring foreign labour workers cost already double in these few years?

Household debt is alarming, but as long as there is tighter control on credit given out, a disaster is spared.
We may heading for slowdown, and potential big correction in property, but to say it is heading to collapse and imminent, with current stat and situation, It is a bit overly.

Properties price is escalating too fast, but not up the degree like others in overseas, and somemore, it is more towards urban and strategic and hot location around, not across everywhere.
Go to out-skirt of town, there are still reasonable affordable house, and some more rental not that expensive either.

The one will hit the hardest will be those hot location, high end.

This post has been edited by cherroy: Nov 2 2011, 04:32 PM

i hear 1 uncle said, 30 yrs ago... 10sen nasi lemak, 10 sen teh tarik only... now this 2 combine can go to 350sen to 400 sen.

Since you won't believe average joe like me. Try to listen to what Jim Roger say:

Rogers: "Bankrupt" U.S. Will Never Pay Back Its Bills

Why BNM is not doing it long time ago, why now?

Not 200k, but it won't be a few million in just 2 years time.

Our property is high if you take into account of our household income.

How far is outskirt?

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Added on November 2, 2011, 4:52 pmCheck out http://www.usdebtclock.org/, can they repay it. No way. Last time we use to say, a country can never go bankrupt, because they can borrow and repay back, but it is not true now. Look at greece and some other euro country soon.

This post has been edited by kelvinfixx: Nov 2 2011, 04:52 PM

how many will bother about the bnm letter request for pay slip..... it can said no one.... bank cannot to anyhting also... they cannot suspend the cc of the owner which still with debt..... letter is just announcement.... pls verify.

Far I think would be like melaka. And malaccan's themselves are complaining based on their salary.

hmmm....my opinion la huh....

Property price shoot up since two years ago due to correction of property price. Meaning two years ago, the propoerty price is really undervalue. LOL

All people now still thinking it is shooting up too fast, and expecting correction (downwards) will be happening soon. but do you ever think of it is actually correction now because the property price in last few years were undervalued?
so what do you expect next?

Last time is under value, now is over value.

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Added on November 2, 2011, 5:08 pmI think about the same. Let us see, does bank negara set this rule?

This post has been edited by kelvinfixx: Nov 2 2011, 05:08 PM

Hmmm..how do you know it is overvalued?

that is y...... 2012 is the answer.

How do you know it is not overvalue? It is overvalue la, just look at the housing price.

This post has been edited by kelvinfixx: Nov 2 2011, 05:16 PM

I look at the price everyday. It is still affordable for so many properties in town even in KL.

A lot of people actually can afford it. just they too picky.

LOL

p/s: also, do not wait too long, as property price somehow will increase albeit with slower rate. too small now the value of our money.

This post has been edited by kh8668: Nov 2 2011, 05:20 PM

Really, give us some example.

apartments below 300k at setapak area...search in iproperty (the most expensive asking price in Malaysia website. LOL)

Apartment below 300k in cheras area do your search

Apartment below 300k at PJS area..LOL

and more

The term "bankrupt" only give some illustration for non-financial savy public, and many may not understand what default and bankrupt, and the term of bankrupt always scare average joe street out there.
In reality, many countries did default their loan/bond before, this is not something new.

Since when people demanded US to repay all its debt?
Just like you apply for housing loan of 300k when you just earned 5k per month. Will bank is foolish enough to demand you to pay the 300k, and make you bankrupt as a result?

Ask back yourself, you demanded trillion being repaid to you, where do you park the money?
What is the use of trillion cash money?
Trillion of cash money is more dangerous than trillion of US treasuries.
Nobody demanded US repay its borrowing one shoot.
Even somebody demanded it, and no money to repay for it, just print it, problem solved. Money can be printed/created one


Yes, if you see 200k properties that was 2 years ago, now selling 2 million, you concern is understandable.
Err, do we have this kind of property around?
Please enlighten us.

How about a lot of unreported household income?
There are plenty of hawkers than can earn better than graduate out there.
They may not be included in the stat of household income.

I don't deny property price is stretching and furthermore, but there are people that are rich enough and have decent earning, and with collateral to get a loan out of it to buy the properties.

You see, if I am taking 300k loan I still can pay it, but when the loan is 700k let say, I won't be able to pay it. America is lending too much, that they won't able to repay it.

US is now printing money to survive.

Why you wanna borrow the loan amount you cannot afford to? if you can borrow 300k, then just borrow 300k lo, why borrow 700k? buy those property asking for 300k lo.