On Nov 25, a seemingly harmless New Central Bank of Malaysia has come into force.

The reason for this new act is “to strengthen Malaysia’s resilience to financial crises in a globalised environment.” Furthermore, the Central Bank can intervene if there is a risk to financial stability.

Will we have a case where banks take excessive risks? Is Bank Negara telling these banks that they have written a put option and they will insure the banks in the case of excessive losses by injecting fresh capital?

As they say “Here we go again!”

Someone has accused Kit Siang of writing on the Dubai World while Malaysia is facing lots of problems. But they may not be entirely unrelated. I was wondering whether ‘the Arab thing’ had been regarded as ‘the Islamic thing’, and had thus exerted a considerable influence on the management of our economy. That may explain why the practice of open tender is shunned.

Same thing, Malaysia is also living in a dream. Umno think they can create a successful Malay class without hard work and study and that is why the country is failing to develop into a high wage country like Singapore.

There is no shortcut to success and everyone has to go through the hard-learning process and literary work your ass off from the bottom all the way up. Singapore has done that, so are HongKong, Taiwan, Korea and now China. Let see if umno will ever wake up from its dream!

financial derivatives, property speculation, margin calls etc, though can stimulate economies, actually is built entirely on trust, greed, sentiment, manipulation and hope

I also think we cannot totally do away with the above but we can’t rely too much on this. Malaysia is lucky, it has natural resources that we can fall back on but the BN administration over the decades have not put the resource into good use.

Now?, with hubris sky-high it came crashing down like a meteorite from outer space.

Will Bolehland learn from this lesson? No, robber barons don’t. The PKFZ affairs will be repeated in the Iskandar Corridor and many others.

The problem with banks is that they are the vehicles whereby the ruling elites and stock market manipulators employed to gorge the common citizens of the world with charged services which at one time were gratis. Banks of yesteryears were customer-orientated entities and prudent in their businesses. But for the last 10–15 years or so, banks have transformed themselves into rapacious monsters with the connivance of the regulatory authorities. They engaged in risky lending activities such as credit cards and all types of toxic instruments. Early birds, such as Goldman Sachs have few competitors and they made exorbitant and obscene profits. This practically draw in more players into the game so much so the financial landscape was completely transformed into a big casino. With practically all banking outfits branching into the crocodile-infested type of environment, it a matter of time when standards and ethics were sacrificed on the altar of greed chasing after fat and easy profits.

Now it has become a dog-eat-dog type of business as each competitor tried to outdo one another through sleazy business practices. With too many players, fat profits became scarce and risks and fraud snowballed. To protect themselves from self-induced risks and fraud, banks have to make their customers pay for their indiscretions. So now it is the privatization of profits and socialization of losses type of scenario that the financial system has morphed into: charge the customers for everything but keep the profits for themselves.

…the government, through the reigns of Prime Ministers Mahathir Mohamad, Abdullah Ahmad Badawi and the current prime minister, Najib Razak, retroactively and illegally authorized payments and bonds that have driven the cost of the project from an original RM1.96 billion (US$577 million) in 1999 to a potential RM12.45 billion…

http://www.asiasentinel.com/index.php?option=com_content&task=view&id=2165&Itemid=199

Every time someone tells me that lax law enforcement is a good thing, I remind them that their waived ‘transgressions’ have not been to court and been rejected – they’re going into someone’s ‘manipulation bank’. Is this story not a foreseeable sequel to Bagan Pinang?

http://www.timesonline.co.uk/tol/comment/columnists/guest_contributors/article6936316.ece

The problems with Malaysia is the property development have been there just for the bubble up of the “Book Value” of a great number of listed companies. The land value could have been inflated, the price could also be inflated (cosmetic by condo instead apartment)? Book value being inflated with mis-appropriated common properties. Projects approved not because the market is there. The worst is the approval could easily be violated without enforcement ending up with billion worth of abandoned projects. Most projects are backed up by mortgage by local bank on basis of inflated land value. The Government had been the abettor of lousy Developers and the oil money is not in the hand of the Government. And, the Government is having a lot of many other loopholes to cover, or, have to feed a lot of cans of worms!!

PM to US to push 1Billion bonds could be a straw to tear the POROUS economic of Malaysia. Who will come to help? It does not matter anything with any part of the World!!

POOR Malaysians in a sinking boat with engine taken away by BN, oil sucked by Petronas, holes drilled by inflated Government Projects/scandals/corruptions, overloaded by “hopeless Police, Public Servants”, rowed by tiresome Rakyats with eyes blind-folded, dragged by the Concessionaires……. !!