BNM  can always hike interest rate, and worse to worse case, peg currency back to 3.80
Hence, many currency traders will get "burn fingers" quite badly.

Hike interest rate gradually will be the option, but re-peg the currency will be the last resort for worse-to-worse case.
Currency Traders/speculators, don't play play .. Lock yr profits!!  Why exchg RM with greenback, as USA Debt Ratios were much much higher??

Peg it at RM 5 to USD 1.. Many currency traders/speculators that always "put"will badly burn their fingers

Banks won't be paying interest, why will die first?

PIDM standby 

According to jolokia, showtime747, sukoi407, etc most borrowers have gold and silver mountain backing, a few % interest rate rise will cost some dimsum lunch only. Where you get the idea people will go bankrupt?

Is Malaysian Ringgit dropping a good or bad thing?

I wish the ringgit increase significant after the big issue solved. There is a lot of impact to my deal in between local and oversea....

They keep on saying nowadays we are well prepared with better knowledge and policy to keep this kind of financial crisis as vs 1998 from happening but the end result speak otherwise. Just like the one in jolokia on the other forum on KV property. Sure I live in the era of 1998 that lock up my money when I bought the shoplot but I ride over it. This time, it look worse.

haha.. that's the person mentality ignoring how market reacts but given the situation now.. i won't feel surprise if it close 4.5 in few weeks time

BNM need to rise interest rate by 200 to 300 basis points to be effective.

There are many ways to skin a cat, some prefer drastic and some like it slow, there isn't any absolute way, whatever BNM need to do won't be pleasant.

On elevated household debt, as no one forced debtors to take loan to buy this or that. Gomen have no obligation to assist or protect them. In the event of default, debtors could only blame themselves.

Mass default of household won't kill the economy, the gomen had experience in 1997, could move toxic debt from banks to agency like danaharta.

Given current ministers mindset, their priority is to keep gomen machinery well oiled and running, and average joe are resourceful, could take care of themselves.

Alternate solution to high DSR is to have hyper inflation.

BNM number should be reliable.

i actually read it reducing the chance of a hike in sep given what's happening in china now.

more likely postponed, maybe nov-dec...?

that may slow down em currencies further carnage but not stop it.

rm... tmrw's fx data will be a major determinant.

10 Currencies That May Follow Tenge in Tumble Triggered by China
http://www.bloomberg.com/news/articles/201...ggered-by-china

MYR in the list... 

When Petrolnas export, we export in USD, when convert back to RM at 4.16, it is very favorable.

Crude oil is a commodity that everyone will grab. If really no market, then should sell to us even cheaper price.