Hantu Laut
The Asian stock markets tumbled yesterday .The Japanese Nikkei went down 9.38% ,Hong Kong's Han Seng down 8.17% and the biggest fall was Jakarta with over 10%.
Surprisingly, while all other Asian markets went down quite substantially the KLSE went down only 2.71%.Is our fundamentals really that strong and investors confidence unshaken in spite of all the bad news on the global financial markets? Is the government trying to prop up the market to avert panic selling? If that is the case how long can the government continue to do so and where are the funds coming from? Let's hope it is not our money or worse still the EPF money.
In spite of interest rate cuts in most major markets the world's stocks markets continue to tumble.The Dow was down 2% yesterday.The Dow has now fallen 35% from its highest level a year ago.The US rescue package will take some time to make an impact on the market.The Moscow stocks market went down 14% and suspended its trading.
Iceland says the government is bankrupt.It got US$5.4 billion loan from Russia and blamed hedge funds for its financial woes.Sounds familiar.
So Mahathir wasn't wrong back in 1997 when he blamed the hedge funds especially George Soros for the Asian financial crisis.There is one thing we must all know, the capitalist world is greedy,competitive,cruel and sad to say, have no space for social conscience.What happened in America and the resulting crisis is because of freedom and laissez-faire gone amok.De-regulation of the financial system and businesses because the Westerners think they are more responsible,therefore, need not be regulated.
I must say again Mahathir was ahead of his time when he said" the Jews used proxies to fight their wars".Take a look at the 2 presidential candidates' campaign in America, how both of them clamoring to suck up to Isreal by refering to it as their main and strong ally in the Middle East.
There is 50/50 percent chance George Bush will bomb Iran before he leaves office in January 09, especially if Obama won the presidential election, leaving him to pick up the pieces.
Due to high volatility and high risk of the markets investors are expected to dump more stocks and move to safer low-yield government bonds and probably gold.
Among the waves of bad news coming from every corners of the world at least there are two good news for Malaysians, the prices of crude oil have tumbled to below US$90 a barrel and Prime Minister Abdullah Ahmad Badawi has confirmed not contesting the Presidency of UMNO in March 09 meaning he is giving up his premiership.
Now, suddenly the politicians are full of praises and accolades for the Prime Minister on his act of courage and responsibility ??
As usual the oppositions never had anything good to say concerning him of the good news or bad, especially those coming from the Indian community, who probably are still sore with him for locking up the Hindraf's activists.Here's what Perak DAP Vice-Chairman M.Kulasegaran said "what surprises me is why he is waiting till March to quit". Give him a break! Haven't you guys given him enough bashing already.
Most Malaysians are only interested in two things, politics and price of petrol.Others, including the world financial crisis, which can make their lives even more miserable can take a back seat.Oh! One more thing Malaysians also love English and European football, the bad news is, you may soon not be able to watch your favourite teams if they fall victims to the global financial meltdown.The hottest team and favourite with many Malaysians, Manchester United owed the bank a whopping RM4.6 billion.
Let's watch the KLSE today whether it will behave abnormally from other markets. If it does than you know for sure who is throwing good money to chase bad money.
Thursday, October 9, 2008
Wednesday, October 8, 2008
Bush's America Busted The World
Hantu Laut
As I have said earlier in my article 'American Get Screwed' it is still a big question mark whether the US$700 billion is sufficient to bail out the sick US economy and predicted that the shock waves would hit the shores of other countries soon.It has begun and is only the beginning.The real tsunamis have not started yet.
The domino effect will certainly take place as many of the markets are indirectly links through many of the huge hedge funds that placed their portfolios in the global baskets. Wall Street has always, for some unknown reasons, been the barometer for other markets to follow. It's the triggering mechanism for boom or bust.
It is not the collapse of the stocks markets that is most worrying and one that could cause major catastrophe, it is the banking system that would decide whether we would go into a major financial disaster or not.As long as the banking system is sufficiently liquid the world major economies would be safe.If it is not than a major catastrophe is not a figment of one's imagination.
The collapse of Lehman Brothers was most unexpected and the US government has allowed it to be the sacrificial lamb and sent it to the grave to save some other bigger monsters. The unprecedented major equity taking in AIG by the US government could be a trend of things to come as it implements it rescue plan.The government could end up becoming reluctant shareholders in many major corporations.
In 1979 when the US Congress agreed to bailout Chrysler there were major outcry, protest and objection from the business community and Lee Iacocca ridiculed by the press for his effort to convince Congress.The rescue package was only US$1.5 billion then, not in cash or equity, but in loan guarantees and was paid back by Chrysler ahead of schedule. Today the enormity of the rescue package and the number of companies to be rescued is mind-boggling and nobody blamed or ridiculed George, his Treasury and Federal Reserve for the failure to regulate the banking system.Because they all wanted George Bust to get the money for them so they wouldn't go bust.
The man who now handles the rescue package is Henry Paulson the Treasury Secretary who gave the US$700 billion to a 35-year old wiz-kid from Wall Street to head and manage the rescue plan.
The de-regulation of the of the financial system was the biggest culprit to this messy affairs for which the Bush Administration and his financial regulating arms should take full responsibility.As President he had failed to take action to reverse the laissez-faire and take immediate action to regulate and stop the greed and excesses in the system.
Although it may be too late to lay the blame, the American people should be made to know that they have a President who are more prepared to show the world the military might of the nation by going to wars at the expense of the American taxpayers and the innocent lives of non-American people abroad.
The next US President that carry on the same policy would also fail to arrest the economic problems as what had happened under Bush's policies.He spent more time with the generals than with the economists and failed to see the even bigger danger than Osama Bin Laden and his band of terrorists, the internal threat of a failed economy that can bankrupt the nation.
With banking failures occurring in almost every major economies the doom scenario could only be averted if those governments took immediate measures to save the financial system from breaking down.
The financial meltdown in the West may not necessary affect the Asian financial markets in the presence but would certainly affect the GDP growth in most Asian countries that have huge export bills to the West.The problem that can eventually affect Asian major economies is if the West is unable to recover and its recession turned to depression.
A loss of confidence in the banking system and attempts to taking money out of it by panicky depositors causing serious run on banks in any of the major economies could contagiously spread panic and run on the entire banking system of the world.
By then,the US Government can keep on printing the worthless 'greenback' and bankrupt every nation on this earth.
When that happened, only God and Robert Mugabe can help us.
As I have said earlier in my article 'American Get Screwed' it is still a big question mark whether the US$700 billion is sufficient to bail out the sick US economy and predicted that the shock waves would hit the shores of other countries soon.It has begun and is only the beginning.The real tsunamis have not started yet.
The domino effect will certainly take place as many of the markets are indirectly links through many of the huge hedge funds that placed their portfolios in the global baskets. Wall Street has always, for some unknown reasons, been the barometer for other markets to follow. It's the triggering mechanism for boom or bust.
It is not the collapse of the stocks markets that is most worrying and one that could cause major catastrophe, it is the banking system that would decide whether we would go into a major financial disaster or not.As long as the banking system is sufficiently liquid the world major economies would be safe.If it is not than a major catastrophe is not a figment of one's imagination.
The collapse of Lehman Brothers was most unexpected and the US government has allowed it to be the sacrificial lamb and sent it to the grave to save some other bigger monsters. The unprecedented major equity taking in AIG by the US government could be a trend of things to come as it implements it rescue plan.The government could end up becoming reluctant shareholders in many major corporations.
In 1979 when the US Congress agreed to bailout Chrysler there were major outcry, protest and objection from the business community and Lee Iacocca ridiculed by the press for his effort to convince Congress.The rescue package was only US$1.5 billion then, not in cash or equity, but in loan guarantees and was paid back by Chrysler ahead of schedule. Today the enormity of the rescue package and the number of companies to be rescued is mind-boggling and nobody blamed or ridiculed George, his Treasury and Federal Reserve for the failure to regulate the banking system.Because they all wanted George Bust to get the money for them so they wouldn't go bust.
The man who now handles the rescue package is Henry Paulson the Treasury Secretary who gave the US$700 billion to a 35-year old wiz-kid from Wall Street to head and manage the rescue plan.
The de-regulation of the of the financial system was the biggest culprit to this messy affairs for which the Bush Administration and his financial regulating arms should take full responsibility.As President he had failed to take action to reverse the laissez-faire and take immediate action to regulate and stop the greed and excesses in the system.
Although it may be too late to lay the blame, the American people should be made to know that they have a President who are more prepared to show the world the military might of the nation by going to wars at the expense of the American taxpayers and the innocent lives of non-American people abroad.
The next US President that carry on the same policy would also fail to arrest the economic problems as what had happened under Bush's policies.He spent more time with the generals than with the economists and failed to see the even bigger danger than Osama Bin Laden and his band of terrorists, the internal threat of a failed economy that can bankrupt the nation.
With banking failures occurring in almost every major economies the doom scenario could only be averted if those governments took immediate measures to save the financial system from breaking down.
The financial meltdown in the West may not necessary affect the Asian financial markets in the presence but would certainly affect the GDP growth in most Asian countries that have huge export bills to the West.The problem that can eventually affect Asian major economies is if the West is unable to recover and its recession turned to depression.
A loss of confidence in the banking system and attempts to taking money out of it by panicky depositors causing serious run on banks in any of the major economies could contagiously spread panic and run on the entire banking system of the world.
By then,the US Government can keep on printing the worthless 'greenback' and bankrupt every nation on this earth.
When that happened, only God and Robert Mugabe can help us.
Monday, October 6, 2008
Hello ! I Live Here Before:A Taste Of KL Taxi Driver's Hospitality
Hantu Laut
A hazy view of downtown KL from KL Tower
In spite of the sky scraping towers and gleaming high rise buildings and ultra modern and civilised looking city, there is an ugly side to this city that most locals were probably not aware of, or chose to ignore.
It wouldn't be an exaggeration to say that KL has one of the worst taxi drivers in the world, even taxi drivers in some less-developed countries are far better mannered than this bunch of loathsome morons.
Be they Malay, Indian or Chinese, they all behaved the same way.The few good ones have become the exception. Cheating, intimidation and rudeness had become trademarks of the profession.
The ill-mannered, crooked and loathsome taxi drivers of Kuala Lumpur would never ceased to cheat, offend and insult you.
Cheating, refusal to use the meter and rudeness are rampant and well organised.Their intimidating behaviour not only offensive to tourists but also to out of town Malaysian like me. If you looked foreign they think you are a tourist and fair game for ripping-off.
As frontliners they have given the country a scary image and this 'Truly Asian' nation where being polite is part of the culture, is not what it supposedly is as in Tourism Malaysia's commercial.
In KL if you hail a taxi the driver would first asked you where your are going and would than decide whether to take you, or not, or quote an exorbitant fare to discourage or try cheat you.
If he does take you than the 'Teksi Bermeter' sign atop his car become meaningless, he would not switch on his meter and would try to haggle price with you and more often than not you are the loser.
There are some who would switch on the meter and take you on a joy ride before delivering you to your destination.That's what happened to my wife and I a couple of days ago.
We boarded a taxi at Sungei Wang Plaza and asked the driver to take us to our apartment at the Ascott near Mandarin Oriental Hotel, a good walking distance if one dare attempt a walk in the blazing afternoon sun. Instead of going straight down Jalan Tun Ismail my crooked taxi driver thinking we are foreign tourists decided to turn into the jammed Jalan Bukit Bintang.
Realising what he was trying to do I asked him in Malay why he took this road instead of going straight down Sultan Ismail and turned right into Jalan P.Ramlee which was much nearer.... his answer was he wouldn't be able to make a turn to our place from Tun Ismail. I almost shouted you bloody moron! You think I am a fool! I decided to keep my silence and see what he does next.
Upon sensing my annoyance he decided to turn into a back lane, the infamous red light 'lorong' (lane) of Bukit Bintang that connects with Jalam Imbi.
The idiot had taken us full circle back to where we first started at Jalan Sultan Ismail and went straight down to Jalan P.Ramlee and finally on to Jalan Pinang to our apartment.He did exactly what he should have done in the first place.
Three days earlier my daughter, her husband and two of my grandchildren came over from Phnom Penh to join us for a family holiday and wanted to take a taxi from Modesto at Jalan P.Ramlee to KLCC, which is a five-minute walk, but since it was raining they decided to take a cab.
If there is anything more absurd and one that can make your blood boil is the sheer uncalled for rudeness and uncouth behaviour.The driver wanted RM20 for the short journey but my daughter refused to board his taxi. Guess what come next? He made a scene shouting at the top of his voice and giving some vulgar signs at my daughter.
One evening my wife and I was going to dinner at one of the restaurants at Starhill and instead of driving the car loaned to us by my brother-in-law, we decided it would be more convenient to take a cab and asked the doorman to get us one.We boarded the taxi having forgotten our previous experience. The driver told us it's RM15 and that quickly brought me to my senses and this time I actually shouted at the driver to stop for us to disembark.He unhappily reduced the price to RM5. We weren't ready what come next.The reduced fare turned into reckless driving trying to intimidate us with violent swinging of the vehicle whizzing through traffic to ensure us a most uncomfortable ride. I almost wanted to break the bastard's neck, if only I could without getting into trouble with the law.
The government minister advising passengers to note down details of errant taxi drivers and asking them to lodge report is as many have found out, a waste of time, nothing will come out of it.
Refusal to allow increase in taxi fare which taxi drivers have been asking for repeatedly but denied by the authority was the reason for the nasty and crooked behaviour of taxi drivers and in retaliation taxi drivers gang-up to show their displeasure by fleecing their passengers.
Across the causeway a taxi driver could face serious action including losing his licence if he refused to stop (except changing shift) to pick up passengers.
There, the government not only talked business, they also meant business.
Saturday, October 4, 2008
Weathering The Storm
Hantu Laut
The US$700 billion bailout bill was passed by the US Congress with vote of 263 for and 176 against. Wall Street has successfully clobbered the US Government into submission into giving it huge sum of money to save it from total annihilation and save the nation from the brink of economic catastrophe say promoters of the bailout.
The passing of the bill was overwhelmingly supported by the Democrats.There were 172 Democrat votes and only 91 from the Republican.More Republicans(108) opposed the bill.They do not see it fits to support their Republican President.The passage of this bill was made possible by sweeteners given to some congressmen for their constituents, promises of tax breaks and other incentives. In Malaysia the oppositions would call it bribery and corruption.
America faced serious liquidity problem with huge NPL(non performing loans) in the mortgage markets that have affected other sectors of the economy.The tight liquidity had made bank borrowings difficult to secure.In simple term the banks don't have enough money to lend or those that have are reluctant to lend for fear of default.Without the bailout the economy could grind to a halt.A period of depression is not a far-fetched scenario.
In September 159,000 jobs were slashed bringing total unemployment figure to 800,000 for the year, sign of a sinking economy. With credit slowing down and in some cases dried up most businesses find it difficult to conduct their routine business.The credit crunch have adversely affected those seeking finance for their businesses and those seeking personal financing.It's the men in the street that suffered most rather than those on Wall Street.Those on Wall Street would have accumulated huge stacks of cash to ride the recession in comfort.
America is a big consumers society with very low saving rate.Majority of American live on credit from buying their houses,cars,furniture to their daily needs.
Cyclic recession is a normal phenomenon in the economy when the bubble had overinflated and needs to burst to readjust.It would bring contraction to the economy.
What you see now is not the normal circle but the folly, irresponsibility and greed of men.The desire to amass fortunes as fast as possible through highly speculative financial instruments. In the case of Freddie Mac and Maggie May most of their troubles started when they over-extended their credit facilities through indiscriminate lending and massive factoring of mortgages from other financial institutions with tacit support of the Bush administration.
The Federal Reserve and the Treasury as supervising and regulating bodies would have to shoulder much of the blame for allowing the situation to deteriorate to such unmanageable level where they could have intervened earlier to stop the rot in the financial system.Bernanke may not have the nose and ears of former Chairman Alan Greenspan.
Now that the bill has been passed by Congress it would be imperative for the US Government to find out what causes the meltdown and who were responsible for it.
Our Deputy Prime Minister Najib Tun Razak recently said that Malaysia would not be affected by any recession or financial meltdown in the US, I would urge the DPM to re-consider his conclusion that we are actually insulated against such economic disaster. Instead, as Finance Minister he has the responsibility to take precautionary measures to protect the economy.To simply say we are impregnable is reckless.Malaysia as an exporting nation is dependent on the global economy.A sick USA would make the whole world sick and Malaysia would suffer more because of its significant volume of trades in export.
Beware of so-called financial experts who intentionally give wrong advice to make sure you make mistakes and undermine your position.
The US$700 billion bailout bill was passed by the US Congress with vote of 263 for and 176 against. Wall Street has successfully clobbered the US Government into submission into giving it huge sum of money to save it from total annihilation and save the nation from the brink of economic catastrophe say promoters of the bailout.
The passing of the bill was overwhelmingly supported by the Democrats.There were 172 Democrat votes and only 91 from the Republican.More Republicans(108) opposed the bill.They do not see it fits to support their Republican President.The passage of this bill was made possible by sweeteners given to some congressmen for their constituents, promises of tax breaks and other incentives. In Malaysia the oppositions would call it bribery and corruption.
America faced serious liquidity problem with huge NPL(non performing loans) in the mortgage markets that have affected other sectors of the economy.The tight liquidity had made bank borrowings difficult to secure.In simple term the banks don't have enough money to lend or those that have are reluctant to lend for fear of default.Without the bailout the economy could grind to a halt.A period of depression is not a far-fetched scenario.
In September 159,000 jobs were slashed bringing total unemployment figure to 800,000 for the year, sign of a sinking economy. With credit slowing down and in some cases dried up most businesses find it difficult to conduct their routine business.The credit crunch have adversely affected those seeking finance for their businesses and those seeking personal financing.It's the men in the street that suffered most rather than those on Wall Street.Those on Wall Street would have accumulated huge stacks of cash to ride the recession in comfort.
America is a big consumers society with very low saving rate.Majority of American live on credit from buying their houses,cars,furniture to their daily needs.
Cyclic recession is a normal phenomenon in the economy when the bubble had overinflated and needs to burst to readjust.It would bring contraction to the economy.
What you see now is not the normal circle but the folly, irresponsibility and greed of men.The desire to amass fortunes as fast as possible through highly speculative financial instruments. In the case of Freddie Mac and Maggie May most of their troubles started when they over-extended their credit facilities through indiscriminate lending and massive factoring of mortgages from other financial institutions with tacit support of the Bush administration.
The Federal Reserve and the Treasury as supervising and regulating bodies would have to shoulder much of the blame for allowing the situation to deteriorate to such unmanageable level where they could have intervened earlier to stop the rot in the financial system.Bernanke may not have the nose and ears of former Chairman Alan Greenspan.
Now that the bill has been passed by Congress it would be imperative for the US Government to find out what causes the meltdown and who were responsible for it.
Our Deputy Prime Minister Najib Tun Razak recently said that Malaysia would not be affected by any recession or financial meltdown in the US, I would urge the DPM to re-consider his conclusion that we are actually insulated against such economic disaster. Instead, as Finance Minister he has the responsibility to take precautionary measures to protect the economy.To simply say we are impregnable is reckless.Malaysia as an exporting nation is dependent on the global economy.A sick USA would make the whole world sick and Malaysia would suffer more because of its significant volume of trades in export.
Beware of so-called financial experts who intentionally give wrong advice to make sure you make mistakes and undermine your position.
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