tag:blogger.com,1999:blog-5014075006969917149.post4253184504890386549..comments2024-03-17T05:58:44.116+08:00Comments on Economic Policy: The Price Mechanism or GhostUnknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5014075006969917149.post-65881800151940833442008-06-30T14:44:00.000+08:002008-06-30T14:44:00.000+08:00Just another thought to quicken the bursting of co...Just another thought to quicken the bursting of commodity bubble.<BR/><BR/>US has go to into recession ie Fed will have to increase the interest rate which will boost the dollar and reducing the demand. That in turn will slow down the export from China, India, etc. That's the price for living in cheap fund for far too long. Recession is a good detox for them instead of bailouts which they've been preaching to us during the 98 crisis.<BR/><BR/>One of the reasons for the commodity boom is due to the weak dollar. Besides demand of China and India, other is the hedge fund flushed with cheap funds. This in turn is fuelling the commodity boom.<BR/><BR/>It's like the stock market, when the market is on uptrend, those with margin accounts make lots of paper money. But the reverse is true.<BR/><BR/>What say etheorist ?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5014075006969917149.post-90580275468639172842008-06-30T09:37:00.000+08:002008-06-30T09:37:00.000+08:00Thanks, Ben.There will be a series of adjustments ...Thanks, Ben.<BR/><BR/>There will be a series of adjustments in the economy, as a result of the fuel hike. At the end of the day, there will be less actual consumption as the real purchasing power has been reduced. This adjustment will be made by the poor.<BR/><BR/>If interest rates are raised, financial insitutions will be the next to take the hit. That is why the central bank is reluctant.etheoristhttps://www.blogger.com/profile/03412913576145631384noreply@blogger.comtag:blogger.com,1999:blog-5014075006969917149.post-32872208582094178012008-06-26T12:58:00.000+08:002008-06-26T12:58:00.000+08:00With your take of Msian economic growth quality, a...With your take of Msian economic growth quality, all the more, the shallow planning of the fuel hike is outrageous. It reminds of me of a child who would ask the parent what the red button(emergency button) in train. At least, the child consulted the parent before he does anything stupid. As far the fuel hike (the quantum) is concerned, I have much doubt that the govt ever consulted the experts. If they had, then the experts would probably have bought their qualification.<BR/><BR/>My take is that in the few months ahead, financial insitutions with heavy hp porfolio and credit cards will be badly affected. Those hp with Proton/Perodua cars where their loan is 100% are the highest risks. With the govt encouraging civil servants to look for part time job, it's basically sending the message "WE CAN'T HELP YOU, YOU ARE ON YOUR OWN".<BR/><BR/>Enjoyed reading your snippets!Anonymousnoreply@blogger.com