DPM cum MoF clueless what to do with the economy slowdown
First, he annouce a RM5 billions fund inject into Valuecap to “revitalise” the market without understanding the root of the problem.
And after week of free falls global finance liquidisation, he has no idea how the business are affected by the bank rates. It won’t take long that Bolehland will make the same mistake as what Anwar Ibrahim did in 1997 financial crisis.
It is useless for Bolehland Bank held tons of cash with no place to go. While the businesses goes bankrupt and put more people jobless on the street, the domino effect will eventually hits financial institutions.
It is rubbish to say how well Bolehland curtail the global financial market meltdown, because it is did nothing to solve the problem : the shortage of cash liquidity.
Thus, all sort of defensive measurements are NOT helping the economy. Without putting business liquidity into the picture, those defensive measurements make the situation worst.
Bolehland BNM are rather in BOLEH mode. Either BNM or MoF, both entities say nothing about the money supplies : whether the Bank are piling up with excessive cash or shortage of cash. By doing nothing on the either situation using the Bank rates adjustment tools, it will create a speculative market to the country, hence , worsen the economy downfalls.
Every financial crisis are unique in certain way, one medicine can’t cure all. I am quite surprise the government still use the forex reserve as the “calming factor”. As Japan already show that, a huge reserve, huge government spending WILL NOT prevent the country from entering recession. Japan are doing too little too late to help the SME/SMI to leverage the effect of conglomerate meltdown inside the country.
50% of Bolehland population are currently under all sort of debt. And credit card debts growth to many billions. Since BNM still reluctant to adjust the rate to curtain the slowdown, once more and more industrial/company start retrenching, it will burst the debt bubble, and force many declare bankruptcy, and the domino effect can cut the bank cash flow, and the defensive method can even crash some bank due to short of cash.
This is pretty “common sense”, but always, common sense are not common to those “powderful people”. 😦