Sep 19 2011, 11:36 PM
QUOTE(cherroy @ Sep 19 2011, 11:23 PM)
Greece default, never mind, bond holder lose out only.
Who are the bond holders?
Banks.
Banks losing big money, and affect its liquidity and credibility and confidence is the biggest nightmare of economy.
Economy cannot work without banks.
Now, you see why I said before, we are seeing the disadvantage of globalisation, everything become inter-related.
US banks can lend money to European banks. Money can be transferred from Euro to US and vice versa with a click of mouse.
Globalisation, means you die, I also suffer, everyone is inter-related.
Somebody did wrong thing, but you still need to bare the consequence, just the degree more and less.
See how US QE1+2 aftermath, Asian countries across generally are struggling to contain the inflation pressure?
Asian countries did nothing wrong, they are not venturing into RE bubble, they are not venturing into risky derivatives, exotic derivatives, they just work hard and save enough money for themselves. But we see foods price sky-rocketing, house price shoot to the moon, and many ordinary worker class are not able, even servicing a loan.
If not globalisation, it is your matter, the degree of affect is not as great now.
Don't get me wrong, I am not against globalisation, it has vast advantage, but it is not flawless.
Well, it is nice to see KLCI rallied from 900+ to 1500+, thanks to QE1+2. Who are the bond holders?
Banks.
Banks losing big money, and affect its liquidity and credibility and confidence is the biggest nightmare of economy.
Economy cannot work without banks.
Now, you see why I said before, we are seeing the disadvantage of globalisation, everything become inter-related.
US banks can lend money to European banks. Money can be transferred from Euro to US and vice versa with a click of mouse.
Globalisation, means you die, I also suffer, everyone is inter-related.
Somebody did wrong thing, but you still need to bare the consequence, just the degree more and less.
See how US QE1+2 aftermath, Asian countries across generally are struggling to contain the inflation pressure?
Asian countries did nothing wrong, they are not venturing into RE bubble, they are not venturing into risky derivatives, exotic derivatives, they just work hard and save enough money for themselves. But we see foods price sky-rocketing, house price shoot to the moon, and many ordinary worker class are not able, even servicing a loan.
If not globalisation, it is your matter, the degree of affect is not as great now.
Don't get me wrong, I am not against globalisation, it has vast advantage, but it is not flawless.
Those who makes money and over-leverage will die, but those who make money and keep will survive.. 
I think Greece defaulting is just a matter of time. Germany already prepares for it, LKY already said something about it. Then the rest of the news we read, are just like lips service to buy time only for dunno what or who.. The question is whether this Greece defaults will cause even greater effect across the world or specifically US. If it does, then a prolong recession is a sure thing.. If it can be contained within Euro countries, then the effect will go away quicker.
One thing I don't understand is why FF keep on selling down KLCI and Asia? Euro is sick at the moment, and US is in bad shape still. Where the money can go?? There are literally trillions of dollars floating around after QE... Cannot be everything inject into gold..
Quote
i think i will top up when reach RM1
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