What's Going On ? What Are We to Do?

What's going on? This, for you, my children, is my take on the financial and economic crisis we hear about now.

Everyday we read or hear of the worsening economic climate in the world. The economies of the giants are falling like ten-pins. First the US, UK then the European Union countries, then Japan (did Japan ever get out of its doldrums ?). Next Korea and then China and Pkistan.

It seems like everyone is experiencing a credit crunch. Then their governments announced bailouts to the tune of trillions. Have the govt been stashing these mountains of cash away or just ordering the federal mint to work overtime? Will more cash make their problems go away?

Ok,what about us? Everything looks hunky dory here. The govt just reduced the price of motor gasoline and Shahir foolishly said that they may talk about reduction again in the cabinet. People think the prices of goods and services will go down but only the naive expects that. In fact when the govt increased the price of mogas to 2.70 there was some good that came out of it. The roads were clear and people drove as if their driving tester was sitting beside them. But not anymore.

OK so the Americans arent in the mood to go shopping this Christmas season. For that reason, our exports will reduce. The manufactoring sector will downshift their gears. Some job cuts may happen.

The government's revenue will also decrease due to the drop in price of oil and palm oil. The govt may cut spending or defer some projects which will cause some unfortunate people to lose their jobs also.

SO what about us? So far we have been insulated from these problems. We dont have any savings with Lehman Brothers so that's good. Most of our money is with PNB and Maybank. Although Maybank was recently in the news for some 'unwise' acquisition, it is still a safe financial institution.

Maybe the biggest single thing the govt should do from now is to practise prudence in expenditure.

As for the regular people like us, we still spend and go shopping although at the back of my mind, I'm not sure if it's a good thing to do.
Many people have suggested for the govt to reduce or abolish personal income tax for next year. That would be real good for us.

The one thing I'm really biting my nails about is a recent purchase. We bought an apartment in Melawati called the 3 Residen. It is overpriced but we went ahead anyway. Now I'm experiencing buyer's remorse. Mainly because of the price.

I guess this incoherent rambling may confuse you further.My message to you is study smart, spend wisely but enjoy your life also.
Till next time.