Experiencing a Cash Crunch

Down to the Last Sen

Believe me, this has always been my constant worry.

Being the only guy who was bringing in the bread and bacon, it can be difficult.

I do not have the luxury of a double family income salary though I do have two kids.

Reflecting, I did have three events of cash crunch.

Cash-strapped

Once, when I was doing field work in Ipoh, I ran into a plight of negligible cash. As I did not update my Postal Savings Account, the cheque from m university could not be cleared in time. So I lived in misery off biscuits and plain water for two days before I got my allowance.

Bills Galore

The second time was at the university. I had a cash crunch as I have made two pants and there was not enough money left for food. As my sister refused me a loan, I had to wait for my mother's money order  which she took from her hard-earned income in her savings account. Meanwhile I took a RM 50.00 student loan to tide me by.

Third time, I was gullible and bought RM 20,000 worth of stocks for a so-called friend. When the stocks fell, he refused to pay up. Fortunately, this time my reluctant sister offered her help. I managed to escaped with minimal losses. I learnt my lesson well.

Lately, I face a new exigency as I have just  paid for my son's college fees. Then I had to send money home and there was the interest I had to service besides paying for my credit cards.

Being caught in a cash crunch can be nasty.

We should all avoid it as it can  really be stressful on the body and soul.

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?

Bye-bye, Sayonara KFC and QSR

Slaughtering the Fattened Chicken

As usual, drastic measures have been used to salvage bad decisions.

That Johore Corp has fumbled royally in taking loans recklessly to finance real estate and industrial projects has reached its nadir yesterday and today when the fattened cow and sheep has to be slaughtered to pay for the sins of the fathers.

Pizzazz No More!

As Johore Corp can no longer pay the billion dollar loans it owed Maybank and CIMB, it went out on a limb with beggar bowl in hand to Hong-Kong and the EPF.

So who pays ultimately-poor KFC and QSR shareholders who were forced to sell back their shares to these new owners.

While KFC was approved for a cash return of RM 4.00 ringgit, QSR shareholders were offered RM 6.80.

Today, as a tribute in swansong, Mr Ng one of the minority shareholders sang a dirge-like Sayonara for the fallen shareholders.

Shadow of Itself

And so closed a chapter of one the greatest SEDCs in Malaysia-the Johore Corp as it gets bailed out by the EPF and foreign money!

What a sham! What a shame!

Malaysian Cars: Depreciation Variance

Talking to my insurance agent has been educational.

I asked him yesterday, what Malaysian car should I buy if I need to replace my current jalopies.

The Smarter Buy

He told me a Myvi is a better buy.

Why so, I inquired in curiosity.

Depreciation, he says as a Myvi will depreciate by RM 2,000 to RM 3,000 the following year.

What about, if I buy the Proton Saga FL or FLX?

Not good, he told me.

Depreciation Disaster

Because the depreciation for Proton cars is almost RM 6,000 in the second year.

So, I told him perhaps I should buy a second hand Proton which is much cheaper if I intend to use it for long.

So, if you are thinking of buying a new car, you know how to choose, right?

TimeCop:Still Excites

Exciting Memory Lane Stuff

It has been a long while that I went down memory lane.

So, I watched TimeCop starring Claude Van Damme and the pretty Mia Sara.

Directed by Peter Hyams and part produced by Sam Raimi, it is still a great movie with its thrills and spills and exact timing for action sequences; and very precise editing.

I like the concept of the juxtaposition of time that a time traveller cannot occupy the same physical space at any one time with his 'other self'

Exciting movie.

We must have more of these.

Is the Truth Coming Home to Roost At Last?

Under Siege?

Reading the article by Moaz Nair in the Malaysia Chronicle  today titled,  "PAS and PKR Already Replacing UMNO Baru: A New Paradigm in Malays Politics"  is indeed like a soul being bared for all to see.

Is there truthfulness in his assertions?

Is UMNO now chiefly  driven by the nefarious money motive with non-Malay business people participating in the background??   Has UMNO become so bad that his hypothesis may just hold water?

Moonlight Aglimmer?

The truth is somewhere in between, out there possibly not being the dominant culture of UMNO as yet but the wind-vane of politics is pointing that way and at increased speed velocity especially with the exposure of the flammable  NFC debacle, the mysterious Musa Aman-Michael Chia  millions and the almost amusing Nazri episode with the Hummer.

I wonder whether it is UMNO's own undoing that is creating all these problems, slowly unearthing worms in concealed cans thus far?

Graft Busting

While PAS plays the religious card to their advantage and with PKR playing on the corruption issues with such intensity, the scenario may see the propensity of more semi-urban seats falling into the hands of the Opposition,  particularly those allocated to MCA, Gerakan, MIC and PPP.

Even traditional UMNO seats  may fell to PR if they put in strong, capable and trusty second echelon leaders.

I wonder what will be PM Najib's strategy in the face of this possible sea-change if it should come.

Good Feelings,Bad Feelings, Loyalty and Ignorance

The true test of voting strength comes the 13th Ge will be underpinned by 4 main factors.

As they ready themselves to mark an X on the ballot paper,what prevails over them?

Feel good, do good

If it is an immensely good feeling they have over a candidate or its party, then the X will find its mark.

Similarly,if he possessed bad feelings toward a party or that particular candidate, the other guy gets his vote.

Adamant adversarial voter

Then we have the issue of loyalty to consider. For some, they are loyalists through and through. No amount of cajoling or persuasion can work on them on the eve of the election. They are driven and most party are happy with these kind of voters. They are a sure bet!

Mostly blind to any cause

Lastly, we have the ignorant ones. These you can influence as they near the polling station. Once they get a picture in their mind based on the last sliver of information drummed into them, then like sheep to the slaughter, they will just vote for that party or person.

Easiest to sucker in

If we can roughly have a ball-park figure of the voters that can be influenced based on these 4 factors then we can do some particularly close prediction.

Can we do this for the forthcoming 13th GE?