Well as the old saying goes by , when US catches a cold , the rest of the world sneezes. I think its true , especially when the $700 billion Bailout Plan by the US Government failed to pass at the Congress .Of course , both parties will start to point fingers to each other and blame. Thats not the issue her , but rather what will happen to the US Economy and not to mention to the world economy. Obviously , US is going to cut imports for sure , but when they cut imports , countries such as Japan , Malaysia , Singapore , and a lot of countries woud be having a big problems. Its sad , many of the investors are shaken. I am sure its not going to be an easy fix for this , as it takes time and obviously people’s purchasing power will be reduced and inflation might shoot up again. This also will slow down tthe whole market as well , who knows – new Intel chips , graphics card mght be delayed because of this (I am just speculating – Nobody is prefect enough to predict how would the market be tomorrow). I’ll be blogging more on this as I get news. For your information , both of the presidential candidates , McCain and Obama has quickly responded to this issue. I guess both of them are very interested in resolving this issue and winning the heart of voters !
Now lets get back to Malaysia , I guess by increasing the intrest rate , purchasing power of consumers would decrease and it would make it bit harder for the people to invest on properties such as houses , commericial lots. Of course , its one of the ways for the Government to reduce the inflation rate otherwise it would be going sky-rocket high , This would encourage people to save , to offset the current inflation. Guess folks , this is the right time for you guys to save $$$$