The Star
Tuesday October 21, 2008
Funds to buy undervalued
stocks raised to RM10bil
The Government has doubled the amount of money available to buy undervalued stocks to RM10bil and will also continue with its spending to boost the country’s economy. Finance Minister Datuk Seri Najib Tun Razak announced that these two moves were part of the Government’s plan to ensure that the economy would not be affected by the global financial crisis caused by the meltdown of banks in the United States.
1. The US/Europe is now in the process of trying to find out why the financial system collapsed. It is now investigating AIG and credit default swaps. http://www.bloomberg.com/apps/news?pid=20601087&sid=axgmP1GYdrFc&refer=home
2. The world financial system has indeed collapsed, despite a lot of people not being aware. Mahathir is aware, http://test.chedet.com/che_det/2008/10/the-financial-turmoil-and-mala.html
3. People right now are not so concerned about 1 and 2 above. They want to know how to fix it.
4. During the Great Depression in 1929, the problem was fixed by governments acting as "spender of last resort". That means, even when no one is spending, the government can continue spending. Of course, that means printing money. Why are people not spending? Economy is bad, they just want to save. And if nobody spend economy become worse.
5. Today, it's slightly different. Governments all over the world is preparing for the worst; another Great Depression. What are they doing right now? The same thing they did in the 1930s (they got study history one); acting as spender of last resort, in case the whole world goes into recession.
What is different this time is that they cannot print money fast enough. $700 billion, how to print? Ink also cannot dry fast enough. So now they are using the highest form of martial arts - man fatt chiew choong. Just SAY ONLY.
$700 billion! Malaysia, $10 billion! (Ah Cub $10 million only, coming in. This one, already come in.) Europe - we guarantee anything, all your deposits, anything. Malaysia also say we guarantee all your deposits. Where the fuck the world got so much money? Don't care lah, say only.
Niamahkai. Solving the world's financial problems is easy only isn't it?
PS. Ask them try to solve this one lah. This article dated March 14, 2008. ($53 trillion only. Your mother fried chicken...) http://edition.cnn.com/2008/US/03/26/beck.deficit/index.html
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