The worlds economy is going to the dogs again. Many countries around the world including the mighty Singapore have declared recession and that its going to get worst next year. I read a report saying that Singapore think that it will take at least 2 years before things gets back to normal again. The good thing about how the Singaporean government is handling it is that its telling the companies to retrain their staff and not to simply lay them off. Thats one of many initiatives taken to put in some damage control into a horrible situation.

Closer to home, the government have re-iterated that our economy is strong and its build on solid foundations and we are not effected by the global meltdown. I personally think that this time around the situation is different from the last slowdown. The variables are different and some serious measure must be taken to ensure that the average Malaysian is not effected too badly!

I read a report at Malaysiakini from a former aide to Tun M. In his blog he dared officials with a reward of RM5000 to prove him wrong but none did.

This is what Matthias said :

According to Matthias’s predictions, by the second half of next year, the nation’s automobile industries will incur massive losses and shipping companies will also suffer losses as shipping rates drop drastically.

“Credit card debts will soar, credit limits will be drastically reduced (worse than the 1998 economic crisis) and interest rates will increase sharply. It is already happening!” he added.

Moreover, Chang stated that he expects the property market to “burst notwithstanding all the stimulus and pump-priming”.

“By the second half of next year, our exporters will be in tears, when Letters of Credit (L/C) will not be honoured and inventory stacks up at ports and in factory premises. Chinese exporters are already stipulating what L/C from which global banks will only be accepted,” he said.

Chang also predicted that the Kuala Lumpur Composite Index (KLCI) will drop below 700 points by the first half of next year. The KLCI finished at 863.46 points at noon today.

“Malaysia will have a huge immigration problem when these hard-working people are thrown out of work and have to compete with the swelling ranks of Malaysian unemployed.

“You can call the above observations - rubbish, pessimism, gloom and doom… but that won’t change reality,”

Those are some serious predictions and if they are true, we are in some serious trouble. The way i see it the government maybe very busy taking care of the “national interest” and even bailing them out. So i think its time for us to take precautions. Im even thinking of how to supplement my income and get some extra money because the cost of living is not cheap and its difficult as it is.

Then i saw this report that said :

Malaysia is likely to escape a recession next year and post a modest growth despite the global financial crisis due to strong consumer demand and public spending

What are your thoughts?? ARE WE IN DEEP SHIT OR IS OUR ECONOMY THE HULK OF THE WORLD?

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