Malaysia is different from other countries is having these "fixed price fund".
Till now, fund experts still can't figure out how do the "fixed price fund" operates. It is one of the most unique type of fund in the world.

Do investors of these PNB's fixed price fund fully aware of that and yet they still queue up to buy this type of fund ?

Buy land and plant rice, vege, rear livestock and you can last for many decades of recession.

Bro, 2 more important things - weapons and people to secure it

This post has been edited by wongmunkeong: Sep 18 2011, 03:20 PM

to my humble opinion the coming recession will be due on really significant debt/asset ratio of european countries inherited during major financial institution bailouts not long ago,
so far, their currency have been depreciating ...a good example would be USD vs Euro
above is monetary macro-factors that will put a lot of external trades on delay and such affecting microeconomics commodities equilibrium...in short, change of cost of living, spending power and so forth. i leave you to imagine the consequence when it happens or already in progress.

apart from human cause factor, mother nature's influence on global economy is undeniable. just think about damages cos due to global warming, tsunami and earthquake. ever notice structure of the planet changes? yes it does, just that we are not long enough to witness. imagine what structure change can do to the economy....a simple example, earthquake at location decades ago pronounced as safe to build sky high buildings. thats rite, what happen if theres an earthquake at major cities? disconnection from the global village means handicap if not shutdown.

Thanks to everyone on the confirmation of AmFin offering 10% FD rates in 1998 for FIVE years.

wonder how they survived?

In 1998 we had rcession, meaning it would be a scenario of low car sales to start with.
How would the low car sales match with, i would imagine long queues of customers taking up the
10% FDs for FIVE years, if there was low car sales due to the RECEssion?

Unless very low sales on the FDs as well?

i am learning a lot here.
But cherroy has not convinced me yet THAT gold is a bad performer!

-deleted - aiyamak, seeing things this morning, pre-caffeine ingestion period.
my apologies

This post has been edited by wongmunkeong: Sep 19 2011, 08:25 AM

Too much RMs flowing by perhaps?

Flowing by IN ok lar
Unfortunately my last month's --> this month's differential in net worth was negative - 1st time in several donkey years

And.. no.. i still blame my mis-reading/posting on caffeine deficiency

This post has been edited by wongmunkeong: Sep 19 2011, 09:06 AM

Ok Guys/girls, let say the situation is twisted.

Instead of recession, we have hyperinflation.

Q.

1. What happen to our RM500k cash saving / epf?

2. Existing loan? Let say RM500k, Islamic fixed rate.
I manage to work as a cleaner in a restaurant during hyperinflation and they pay me RM1 trillion per hour. Can I pay my loan? If no, is there are specific bank's t&c that allow them to restrict us to pay?

Can someone enlighten me?

Google weimar republic or Zimbabwe+hyperinflation

Bro prophetjul, i thought you can spoon feed me. Instead have to goog and read.

Q 1, answered. Q2, I will read it first....


............................

Unbelievable.... I found it! After jumping from page to page, website to website and almost ask to be spoon feed, there it is.....

"Contractually there is often no bar to a debtor clearing his long term debt with "hyperinflated-cash" nor could a lender simply somehow suspend the loan. "Early redemption penalties" were (and still are) often based on a penalty of x months of interest/payment; again no real bar to paying off what had been a large loan. In interwar Germany, for example, much private and corporate debt was effectively wiped out; certainly for those holding fixed interest rate loans."

http://en.wikipedia.org/wiki/Hyperinflation

So guys/girls, if you predict that hyperinflation will happen in Malaysia, make loans as many as possible and pay it with hyperinflation money....

Wow, it is so easy......

Any comment?

This post has been edited by OneBuck: Sep 19 2011, 11:33 AM

oh easy?
So what happen to all the bank in Malaysia? Do you think people still want to own asset in Malaysia if that happen?
all the basic necessity things will be the most valuable things if that happen( water,food etc...).

just my 2cents

I think you missing the point (or I wrote it wrongly )

Thing happen before, during and after is all a different world.

Extreme case. Today, for RM500k loan, I can buy a nice bungalow, at 5 acres land near water sources at Malacca and another RM500k personal loan I will buy Gold.

Tomorrow hyperinflation happen.

We are all will searching for shelter, water and food but I basically have nice bungalow and gold free from debt and another person worrying about country investment have....

Do you think you alone staying in nice bungalow and having 500k gold is safe when others or millions people are searching for shelter, no water, no food just outside of your bungalow?

Hyper-inflation often associating with social unrest
and little people have faith in a hyperinflation countries economy nor want to own anything in the country, and doing business there, because the currency can be worthless.

---

Added on September 19, 2011, 5:37 pmFeel good about hyperinflation that can solve your debt problem?
You lose even more.

This post has been edited by cherroy: Sep 19 2011, 05:37 PM

Just a thought, Uncle Sam is printing so much money, and because the currency is such international it is everywhere. And when the world is flooded with the currency, what if none of the countries is spared from hyperinflation?

When that happens, we can forget about economic performances, foreign investment, asset classes, bungalow, etc etc.

Social unrest will prevail until a certain force strong enough to gain control over the mass public. Social stability and economies may take months or even years to be restored (not recovered, but just to put orders back in place again).

I suspect, during that period, barter system or commodity-based exchange system will be commonly acceptable until everybody settle with a common way of exchange. Perhaps, back to commodity-backed (gold/silver) currency. Basically start all over again and evolve, and naturally let the history repeat itself again in 50-100 yrs time?

If this happens which country would be the "best" place to stay, Australia?

That's my point...
Onebuck, I wonder how you survive if no one provide food and clean water to you.
The things "before" and "after" is not as long as you expected.
People are not stupid. For instance farmer, nobody want to exchange something depreciate says like 20-30% tomorrow if hyperinflation happen.Imagine public people go to supermarket and buy anything they can as fast as possible before their money depreciates.Then who want to do business?hide in your house and eat the gold you just bought??? I am sure people will bring their gun to rob your gold.
no offence, just a simple illustration.

This post has been edited by foofoosasa: Sep 19 2011, 06:55 PM

Folks,

http://www.powerswitch.org.uk/portal/index...d=2079&Itemid=2

Lessons from Argentina's economic collapse

<< The third pyramid showed the communist society. Where arrows from the low and middle class tried to reach the top but they bounced off the line. A small high society and one big low society, cushioned by a minimal middle class section of pyramid. Then we turned the page and saw the darned fourth pyramid. This one had arrows from the middle class dropping to the low, poor class.

“What is this?” Some of us asked.

The teacher looked at us. “This is us”

“It’s the collapsed country, a country that turns into 3rd world country like in pyramid five where there is almost no middle class to speak, one huge low, poor class , and a very small, very rich, top class.”

“What are those arrows that go from the middle to the bottom of the pyramid?” Someone asked.

You could hear a pin drop. “That is middle class turning into poor”.

I won’t lie, no one cried, though people rubbed their faces, held their heads and their breath.

No one cried, but we all knew at that very moment that all we thought, all we took for granted, simply was not going to happen.

“You see, the income from the middle class is not enough to function as middle class any more. Some from the top class fall to middle class, but the vast majority of the middle class turns into poor” Said the teacher.

I don’t know how many people in that room suddenly understood that he/she was poor.

The teacher continued “You see, we have a middle class that suddenly turns to poor, creating a society of basically poor people, there is no more middle class to cushion tensions any more. Middle class suddenly discovers that they are overqualified for the jobs they can find and have to settle for anything they can obtain, there for unemployment sky rockets, too much to offer, too little demand. You see they prepare, study for a job they are not going to get. You kids, you are studying Architecture because you simply wish to do so. Only 3 or 4 percent of you will actually find a job related to architecture.”

We all sat there, letting it all sink in. After a few months, it all proved to be true. Even the amount of students that dropped out of college increased to at least 50%. They either so no point in studying something that would not make much of a difference in their future salaries, had no money to keep themselves in college, or simply had to drop college to work and support their families. >>

Dreamer

This post has been edited by dreamer101: Sep 19 2011, 07:14 PM

Don’t get me wrong. The example is on the extreme side. It is not about hoping to settle debt during hyper. It is about taking advantage during extreme economic climax.
If God will, like you, we also can survive without working in 2 years without touching our fixed assets and PM.

Nobody wants recession or hyper. But when it is happen, people who is ready, is benefit the most. Recession, people with full loaded cash can accumulate quality asset at a bargain.

And it just happen that, during hyper, people with debt, according to German history, they can settle it with inflated hyper cash. Bonus to people with good debt: properties, land, gold, they can use it during the time.

According to Mike (ya..ya.. I know he is quite bias), people have some misconception.
“People get a picture in their head, during economic disaster, that is going to be a like a nuclear waste land afterward. It is not, all the building is still going to be there. It is just they are going to be in sale. The problem is, when investment is on sales, nobody is going to buy”

http://www.youtube.com/watch?v=tj2s6vzErqY&feature=relmfu



But let say, situation is worst, I will not put a billboard ala Last Vegas saying “There is no Gold inside my house”. I will be like all other people, searching for food, looking for water and joining them. That is survival. Like now, I have PM, but all they see in front of my house is one kapcai made in China.

And foofoosasa, according to this real video, during real recent hyperinflation, yes people still did not eat gold, but they can used it to get food. And again, I will not melt my gold and wearing it like Mr T, common sense.

http://www.youtube.com/watch?v=7ubJp6rmUYM



This post has been edited by OneBuck: Sep 19 2011, 09:34 PM

Recession:
Quality asset can turn into junk in recession, how one can assure it will be quality in the future?
Nobody can ascertain of.
Look at Japan, more than 2 decade already aftermath of RE bubbles, still not fully recover.

Hyper:
You RM10 cash under the pillow still a Rm10, it won't grow due to hyperinflation.
Only when you income grow exponantial in hyperinflation time.

Nobody want to lend you money in hyperinflation situation, who is the fool to lend you money in a hyperinflation situation?
Banking system may not even exist or run properly.
Loan? where to get?

You cannot take in what happened during stability time and put into those extra-ordinary time and expect it works the same (banking system). It doesn't work this way.

See how Lehman filing bankruptcy can cause the entire financial market into liquidity freeze, all stand still. All financial game change during that time. People fear about banks ability to return on money, instead return of money.

War, buy building? buy asset? buy stock?
If really war, then it means we are talking of changing gov entirely.
So the new gov will recognise this building is owned by you or not?
They can just confiscated like that, why you can do?
Nothing.

Stop believing nonsense, no offence, if bad situation happens, everyone is the loser.
Nobody gain if war coming, nobody gain if economy run into crisis, chaotic situation.

It is aftermath, when thing settling down, aka the new era, you can take advantage of, because it start off clean or all over again. But again this may mean you lose everything previously.