few things I learn today.
1) Major bank in china is owned by gov. Only major and big corp can access to this banking, majority of sme and individual (including prop buyers) need to borrow from shadow banking ( also known as Ah Loong in M'sia). China gov will make sure the core banking system will not collapse.
2) Indonesia central bank has increased interest rate by 1.75% since last year, however, Thailand drop 0.5% (this % if not wrong) in the same period.
3) Although the unemployment rate in US has improved, but the jobs created are temporary or contract jobs. More quality jobs ie permanent jobs are required for long term substantiality. As a result, Feb need to postpone its plan to increase the interest rate. However, QE is ending soon, time to increase rate by then?
4) Market has adapted to the QE tapering. Share market no longer react negatively compare to its first announcement in May 2013.
5) Detroit may be bankrupt, but its residents actually have the lowest levels of debt in the country.

Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a year, or other given period of time. GDP per capita is often considered an indicator of a country's standard of living.

by taking household debts to GDP, what does it mean? 100% mean very bad?
If I apply the equation to my own household, will it be my total household debt over total household income per year?

with the definition of GDP, your 2nd point on 14% disposable income don't think is right.

but developer built the house (final goods) and sold to residents. Isn't it increase the GDP? GDP increase no good? GDP increase faster with debts or without debts?

the debts take years to pay back, 14% only correct if the debts need to pay back within 1 year and GDP refer to household income.
the car manufacturer get paid 100 cars when they produced and delivered.

This post has been edited by bcpbeancounter: May 3 2014, 11:01 PM

do you mean if pay via loan, the GDP lower? but developers get paid 100% (ignore the retention sum) when they provide VP.

that's why we cannot just rely on 1 ratio and conclude that the debts is too low or too high. I think this ratio is just an indication, nothing much. if we are to take total debts over GDP, it will be few hundred % I guess as I think commercial debts are even higher compare to household debts.

I understand this. but my point is 86% household debts to GDP does not mean 14% disposable income.

NO. once you delivered your goods or provided services, you get 100% paid.

this one you are right. But when credit crunch will come? You have the crystal ball? or maybe hantu pisang can tell you.

No...my total debts is few times higher than my annual income. Can I suggest that the writer also not too sure of how GDP is calculated? Haha...

of the 100% service I provide to my company, I get paid 74%. 26% go to the sucker.

this is called team work!

only MLM need team work?

I am ordinary working class sit in office everyday. Bear bear refer this at 70%. haha...
in Malaysia very easy to hit the highest tax bracket of 26% personal income tax. I don't think my income is high, of course I don't say I am poor la. haha...

I am not MLM. this is not my cup of tea.

wa lao...every project also need team work right? unless you are captain America.

Another thing i learn yesterday is gov learn from mistake. Things happen in 1997 should not repeat because foreign reserve have increase significantly for asian country compare to pre 1997. Expert say one ha...i dont even know what is foreig reserve.

11.9% on interest. If add principal should less than 30%. So disposable income more than 70%. Still good right?

If no money should eat roti + kaya. Buy samsung sign up 2 yr contract come with free phone. Cut down all unnessary entertainment. Worst case, eat banana for breakfast till dinner. Jimat dan sihat...