hmm this is the problem with ppl ...

ok dude lets look what ure saying

1.U say dont bail wallstreet aka ( think about it longer its the same as saying dont position ureself for a profit position)
instead let banks fall ( all loans are backed up deposits which are partially underwritten by some insurance company on a cascading effect)

a. So instead of helping the debts of the banks.. ure asking the government to float more dough to pay back the deposits which will be taken partially by creditors.. ( aka a lot of ppl forget.. when u say bankrupt.. that means u have debtors).

b. Let the insurance companies suffer???which are again backed up by deposits/long term risk leveraging which in this case is totally unaccounted for..(doubt the actuary placed a heavy weight on AAA rated instruments failing by 50%.)

c. Where u think all that trillion dollar hedge funds are heavily invested in??and guess whose money mainly are in them.. the ppl..

d. Guess whose the biggest lender/buyer to all those sweet US bonds .. China/Japan... which now will have suffered in terms of nominal value and also the coupon rate.. and to make matters worst.. all the investment borrowings and undertakings that was leveraged based on this.. will now face margin calls on a crisis level..


hmm dude this aint the asian financial crisis...

think longer on this..

also dude this aint a bubble.. ( bubble means a overvaluation of assets.. economic growth..etc)
This is overexposed.. aka overleveraging and guess what its on real money.. ppls money.. not the governement..
its a corporate/commercial distress

What the bailout plan is meant to do is to buy over all the toxic assets.
Not meaning undervalued assets but a lot of high value assets that the banks dont have enough deposits to float.

This is the best example of farmer Joe shouting in his tele with a bud saying die u wall street son of a guns..
proudly looking at his collection of guns and his farm outside..
Guess what farmer Joe.. who did u borrow the dough for ure lease.. who did u borrow for ure equipment..who ure selling to and buying from.. every business is linked to financial leverage / arbitrage.

the current situation is a global thing.
In the US government which instead of spending USD 4 trillion up to date on war in the middle east...
dont u think its cheaper to help farmer JOe??..

kekeke
also the whole situation will be worst when contrarians with a lot of cash invest on shorting and making a ton on this foolish decisions...
so ure actually saying lets make warrent buffet even richer by being dumb..
in that case die wall street die...
die bank which has all my money ( unless ure hiding ure dough under that matress).. die
die insurance company ( which has my risk exposure paid for .. medical.. endowment..etc) die...

and than oops.. why was i fired
crap i have no dough in the bank..
i'm sick.. but cant go to the private hospital which now my bankrupt insurance company died...

this whole situation would put the world on a hold.. i mean literary..
no new tech.. ( guess what R&D spends on real money.. not on leverage/arbitrage/loans)


Pros:
N96/Iphone will most probably be in the in phone till 2020.. since no new phones were made till then..kekeke

Cons:
Streamyx will charge is ridiculous amount for slow stupid internet till 2020.

confirm last post.. kekeke

This post has been edited by cstkl1: Oct 1 2008, 09:15 PM

1) Agree with you the bubble will burst eventually in USA. Maybe it will burst in Malaysia later, KLSE/properties. Nobody really knows at this moment.
If not mistaken the effect of 1997 crisis got worst in Msia only in 1998 when the KLSE dropped to 200-300.

2) Haha.. problem will solve by itself, that's what our Msia politicians are doing

Dear pal,

For your information, U.S. National Debt is $10,345,181,748,100.58 and increasing $3.45 billion per day. The estimated population of the United States is 304,945,588, so each citizen's share of this debt is $33,924.68.

U.S. is a nation live with extreme high leverage and borrowing. They import goods and products from the world without paying money because U.S known as strong economics. They borrow money and issue government bonds, declare war to conquer country, pull down other government and bring in all U.S contractor and share the profit with their banker, get money from the banker and dump the into the war machine for weapon production and R&D, this successful make the war machine and financial company stock price hit and lead the stock market to grow.

In short, U.S economic deserve a burst and this is a structure problem, it'll take longer than 1997/98 criss to recover. Their new issue tons of government bonds to save the bank have restore some of mess. They decide to keep the bubble growing, one day it'll burst, and U.S will no longer a world leader then. Is time for China to claim his position, Hong Kong will become the World Financial Center.

This post has been edited by jedileong: Oct 21 2008, 11:17 AM

Malaysia to take 3 years to recover from market slump

Dec. 12, 2008 (Bloomberg) -- Malaysia’s property market will take three years to recover from its current slump, the slowest revival in more than two decades, reflecting the reach of the worldwide financial crisis, Regroup Associates Sdn said.

“In the past four weeks, I’ve been staring at an abyss,” said Allan Soo, managing director and founder of Regroup, a Kuala Lumpur-based property consultant and home seller. “What’s changed is the global recession.”

A worldwide slowdown has sparked real-estate slumps from the U.K. to Singapore, causing Malaysian developers such as Magna Prima Bhd. to scale back projects. Values of luxury homes in Kuala Lumpur, where prices surged to a record last year, may fall as an oversupply looms, according to Soo, who declined to give a specific forecast.

Malaysia’s property market took about a year to recover from the 1997-98 Asian financial crisis, Soo said. The rebound from the latest slump may start in 2010 and take as long as the recovery from the 1985 recession, Soo said.

Compared with 2007, interest from prospective buyers has dried up, Soo said in an interview in Kuala Lumpur yesterday.

Read more here: www.bloomberg.com

i think property price will drop but wont be drastic drop due to all material cost already so high. if want to hunt for cheap property, wait for those ppl that need money urgently and let go their houses

excuse me.....why bother whether things are going up or down?

it's better to buy property and wait, not wait and then buy property. Just quoting some random author.

Of course I have my reasons on this, but that's a story for a different occasion.

Long story short, don't be bothered about the state of the economy when it comes to real estate. It's all just short term "noise".

HAPPY NEW YEAR 2009!!!!

This post has been edited by kelvin667: Jan 2 2009, 02:54 PM

May i know will malaysia housing price will be decreased during this economy crisis? i heard some news said that BLR rate oredi reduced, thus this may decrease the loan rate oso?

What is the best time to buy house?

price house i think wont decresed...but interest rate yes...
it already decrease from 6.5% -2.0% to now 5.95% -1.8%
thus the interest rate around 4.15% which i heard from a broker when i visit a show house in my area... how ever, ppl speculate the interest rate will drop below 4% if the economy continue to down. my broker say probably the rate will drop in June again if economy still bad...

so it makes no difference if we buy property with cash payment ?

The big difference is when the installment length is too long, hence the total money you paid is higher..

what I'm saying is, if the price of property does not drop, so it's not quite beneficial if we buy for cash.

Well, if the price ain't dropping, then when will be the right time? If u wait for sometime, the price could go higher and higher..
In the end, u'll in the middle of nowhere..

imo, the price will drop, but also depend on where the property located.

look at the real estate lelong-ing, you see more and more on newspaper, you probably can grab a good piece from the auction as well.

Looking at Prime location, eg. PJ.
I still didn't notice many auction sale / urgent sale

Only could find it in KLCC and Mont Kiara area for now...


Kravo, which location u are looking at?

I am waiting too... ...

Expert says wait till 2nd half of 2009 or early 2010..

Now have to collect "bullets" 1st

new property won't drop due materials & inflation.

for PJ area, people here are comfort zone. you will never see For Sale/Urgent tags.
You yourself have to approach resident one by one. Make an offer.
Find the house you want to buy & action.

The longer you wait, you keep waiting & ended nothing.
The old folks last time will not sell. As time passed by it's handed down.
And these new generations, ended up already got theirs own.
So action now before its too late & grab by others.

You see example in SS2. Those house turn wedding lots. Sweet ha.
Later PJ will be like that. Then value rises coz this area is high traffic area.

er.........why is it beneficial to buy for cash?

for investments - it pays to always leverage.

Fishing rules! be patient and wait a bit longer, quality fish dont bite often.

Prime area in PJ ?

What about Dataran Prima in kelana jaya ?
the new Prima Avenue build by Mutiara good year ?