The Dying Ringgits

Always Away from Reality

If you expect the early return of the fair interest regime in the local banking system, stop dreaming.

If it ever comes back it will be possibly next year and even after the first quarter as forecasted to be the earliest possible adjustment by seers of the economic scenario.

The Attraction of False  Gold?

So, it is no wonder that innocent investors has been fleeced kaw kaw by the likes of the gold purchasing schemes which drew billions out of the banking system. It is going to be one long weeping season for those who gambled in these gold wafer ventures.

And can the government help in stopping the shrinking of the value of our dying ringgits? Little hope as according to economists, the economy is under constant external threats.

THE OPR will be rutted in a 3% trough which it has remained so since May 2011. It is just too low to protect the savings from being gobbled up by the 'inflation termites'.

Attracting more funds sans BNM's deterrent Measures

Amidst this sad background, property prices seems to go up forever despite Bank Negara's tight financial policy stance against property speculation as well as the government's 15% RPGT. Home ownership for many continues to be a mere pipe-dream especially for new graduates and the lower-salaried homeless employees.

If the asset bubble should come, it will likely be in far-flung areas like Bukit Beruntung and not in hot spot locations in the Klang Valley, Johor Bahru, Penang and Kuantan. Even prices in sleepy Ipoh had jumped up to incredible heights in  value!

Now that you know that there will be no more 'good interest news' from Zeti for a long while, what would you do with whatever you have left salted in these low interest bearing fixed deposit certificates? Are there any hedges left?

Poor Returns?

Gold schemes are illusive, unit trusts are in the dumps and there is no new Amanah Saham, sukuk and 1Malaysia Bond issues in the offing.

Dullard Dumberer!

Meanwhile, the stock market is a a poor bet after the E&O and Astro debacle.

Bye,Bye!

Good counters are de-listing because there is no use any more to be on this bourse as activities here is just slumping as the months go by because of lack of foreign interest and risks can be high if you are caught with the wrong stocks in hand.

Malaysia’s inflation rate in the last year ranged from 3. 5 per cent last June to a shockingly unbelievable  low of 1. 4 per cent  touted in August but there is widespread skepticism over these official figures as they do not seems to represent a true picture of the rising cost of living. It's similar to that boy who cried "Wolf!".

Bank Negara's line has always been the same-dull statements parroted out that the general population no longer believes. What rate is supportive of economic development when leakages abound in much of the system? While loans may be easier for business people to take in a low interest regime, savers especially old folks have been systematically bled! With the current poor economic situation expected to continue, you may even have little takers for these low-interest loans!

CIMB Investment Bank did mention that a prolonged low interest rate regime will encourage the search for high yielding assets. I think smart people with smart money are just doing that. Will they find it at home?

Better returns and also Grave Consequences

Maybe in illegal businesses!

So, what do you say? Any suggestions?