Posted by KC Loh > 2012-10-10 16:42 | Report Abuse

This is just to put my thoughts on paper (or posting)!I think Bernanke's focus on jobs to the US industry is good seeing that the impending fiscal cliff is coming. with spending cuts all around the civil sector as well as tax increase in all sectors of their economy, US could be trapped in a bear market for a while leading to a long recession. The double edge sword of 8% current employment and will balloon to a possible 13.3% will be significant unless many Americans starts getting jobs. Inflation on top of that will keep national security at risk. the US40bn spending for improved job data is good and sound policy in light of limited fiscal moves Bernanke can implement. Its only monetary policies in place now, not fiscal! Even then, many are questioning did Obama's government manipulated the numbers as Jack Welch observes : http://www.bloomberg.com/news/2012-10-09/ex-ge-ceo-welch-leaves-fortune-after-twitter-post-backlash.html The US will only have one more quarter to show improved strength to the job sector of which it can help build momentum and avoid a recession. if not, it will be a sick man of the world. what will that bring to Malaysian equities? for one thing, it would lead to monetary outflow to safe havens, the likes of Korea and Indonesia. Malaysia could stand to benefit! will there be a bull? the answer lays in the hand of Bernanke and how effective the US40bn a month could push. on the other hand,a sick US will not necessary augur well for us, US being the second largest trading partner for Malaysia. double edged swords lately in the market!