We explained earlier that Jeremy Grantham is worried a stock market crash could wipe out major world governments. He thinks governments could go bankrupt trying to bail out the financial system during the next crisis.
It’s a real concern. Governments are far more indebted today than they were before the last financial crisis. They have less room to borrow…which means they have less ammunition to fight a crisis. we share the best way to handle the crisis economic , buying property counter , such got the prime location , in future , economic healthy back , the return is triple or even higher , so our fund highly focus on tropicana .
Malaysia, like many other Asian countries, faced two major crises in the space of 10 years. How did it weather these and what lessons can be drawn from this experience? 1. I ncreasing integration into the world trade and financial system brings with it benefits and dangers. Malaysia’s economy, like most other emerg- ing economies, is becoming more integrated, rather than decoupled, from the world economy, through both trade and capital flows. Financial openness exposes the domestic economy to sudden and large movements of capital and volatility in exchange rates. Exchange rates today are influ- enced more by capital flows than by trade flows. If a country, particularly a small economy, maintains full liberalisation of capital flows, such massive and volatile capital flows can undermine its monetary policies, as in the case of the Asian financial crisis. 2. P olicymakers should not be tied to IMF orthodoxy. Rather, they should be pragmatic and flexible in their policies, and guided by overall national objectives. Fiscal, monetary and banking policies should be counter- rather than pro-cyclical. They should be willing to use instruments other than the normal monetary one to attain these objectives. Malaysia adopted selective capital controls to stabilise trade, capital flows and exchange rates and adapted or removed these as conditions changed. At PAGE 18 PAGE 12PAMa1hPAE- aP-PhPG that time, such a policy was considered heretical; yet today even the IMF is advocating selective controls as a legitimate tool to manage economic and financial stability. Today, as many emerging countries face asset in- flationary pressure resulting from excess liquidity created by quantitative easing and carry trades, policymakers should be willing to use additional tools to manage their currencies and capital flows. 3. Th ere is no substitute for building strong macroeconomic fundamentals and healthy national, corporate and household balance sheets. Malaysia’s external debt at the outset was low, and there was little currency mismatch in its external debt. Another reason many Asian countries, including Malaysia, were able to weather the global financial crisis relates to their ample foreign exchange reserves, which provided them with the liquidity and ability to absorb external shocks. In 2008–9, Malaysia suffered a net capital outflow of about US$30 billion, but the country still had US$90 billion in foreign reserves, equivalent to eight months imports and over three times its short-term foreign debt. Countries like South Korea and Indonesia, which had high exposure to foreign debt, currency mismatches and low levels of foreign reserves, were in a more precarious position. 4. M alaysia is highly dependent on trade, and manufacturing forms the largest component of its exports. A total of 60 percent of its manu- facturing exports come from the electrical and electronics industry. To lessen volatility, it should diversify both its export composition and its export destination. The crisis witnessed a discernible shift in Malaysian export destinations toward intra-regional trade, and in particular Towards China. 5. Th e world financial system is becoming increasingly fragile and unstable, and financial crises are at the heart of major economic crises. Asset infla- tion, rather than wage or consumer price inflation, has been the driver of economic boom and bust, and was the main cause of the global financial crisis. Malaysia should learn from this lesson, and central banks should pay more attention to asset inflation and be willing to adopt lean-against- the-wind measures to avoid or minimise similar crises in the future. 6. M aintaining a prudent and sound banking system with a low level of exposure to fancy financial instruments stood Malaysia in good stead. Malaysian banks had minimal exposure to collateralised debt obligations and other derivatives, were well capitalised and had stable non-performing loan ratios. The government should resist pressures to indiscriminately liberalise its financial systems or adopt the latest fad in financial innovations.
Shouting across the political chasm, the federal government accuses state governments of causing the house price boom because of their restrictions on land supply while, on the other side, Labor yells that tax concessions for property investors must go.
Anything the government does to promote improved supply is claimed by Labor to be avoiding the central issue, while the government claims Labor’s plans would wreck the rental market and precipitate a collapse.
You may wonder , why our fund not move yet , i tell you , we also learn Danny skill , pretend , once we think is excited , will full force , collapse it , WAVE it to MAX LEVEL , that is our trend playing .
hahaha , i lie you guy again , i can see Danny very steady , pretend like usual , this game will take long period to implement , i salute and continue pretend like him , coz monopoly game need gems skill .
Danny is very strong financially. That is the reason he never push up Tropicana to make money. He is too rich and does not need to make money in this way.
if allow , i am use the heavy piling machine , pile Tyranny 6 feet under ground , soil it together with all the toilet paper Tropicana , i talk the whole phenomena , Danny is too much , he think he is the earth creater , he not release got so many people suffer while his action , he talk he really the owner of Tropicana , i just give him a dirty image in worldwide , i prefer sharing method in term profit , not holding like his own property and wealthy , only way he don't wave , i select melt with off shore , play off him as well .
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
khatulistiwa1234
46,261 posts
Posted by khatulistiwa1234 > 2017-06-28 22:33 | Report Abuse
LIMIT UP FEW ROUND IS ESTIMATED .