Justice For All Malaysia

The spiralling effect not within the horizon of 2009 budget

Posted on: October 11, 2008

But then again, nothing supercedes umno supremity and all its affairs…

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Black Friday for Asian bourses, KLCI down 3.6 pct
Wong Choon Mei | Oct 10, 08 5:16pm
Malaysian shares plunged nearly four percent on Friday, as huge overnight losses on Wall Street triggered a domino effect in Asia.

MCPX

The losses in New York, worst than those seen in the immediate aftermath of the Sept 11 attacks, have persuaded investors the string of of multi-billion dollar bailouts plus concerted interest rate cuts will do little to keep a full-blown global recession from occuring
klse asia stock share market down crash turmoil 060307“Everybody is talking about keeping cash. Everybody wants to sell,” said the head of research at a large bank-backed brokerage.

“So what we have is a narrow, narrow door with everyone rushing out at the same time trying to dump as fast as they can. Who would dare come out to buy at this time.”

At market close, the benchmark Kuala Lumpur Composite Index was down 3.6 percent to 934.01 points.

In New York, the Dow Jones Index had plummetted 7.33 percent last night, while the broader-based S&P Index lost 7.62 percent. The tech-laced Nasdaq dropped 5.47 percent.

Today, the falls across Asia were so severe that the president of the Indonesian stock market once again halted trading, only this time he said the suspension was for an indefinite period “to prevent deeper panic”.

In Japan, the Nikkei plunged 9.6 percent, Hong Kong shares dived nearly 8 percent, while the Singapore Straits Times Index sanked 7.8 percent.

Vicious circle

Later tonight, finance ministers and central bankers from the Group of Seven industrialized nations will meet in Washington to discuss a way out of the banking holocaust, which has been exacerbated by fear of counter-party risk amid a widening vicious cycle of bankruptcies..

“Very frankly, I am not so sure they can achieve much,” Lee Heng Guie, chief economist at CIMB Bank, told Malaysiakini. “They have already tried various ways but it hasn’t worked.”

“Still, the first thing to do is to try to find a way to restore confidence. What is happening is that the pessimism is down-spiralling. No one wants to lend anyone any money. Everyone is afraid of incurring bad debts. Obviously, this is making everything worst.”

Lee suggested one possibility was that policymakers issued guarantees as this could halt the worldwide panic and re-generate investor confidence.

“It really is no point flushing the international money markets with liquidity as they have been doing in the past. What is the point if nobody dares to lend out the money especially to those who need the funds the most to recapitalise.”

Meanwhile, another factor weighing on the Malaysian market is the uncertain political situation as Umno – the largest party – gears up for the election of top office bearers.

Prime Minister Abdullah Ahmad Badawi earlier this week had announced plans to step down next March, clearing the way for his deputy, Najib Abdul Razak, to move up the ladder.

Analysts have predicted the local market would continue to soften, unless there was a sharp reversal in the global trend. Some chartists believe the KL Composite may have to test the psychological 900 points before any reasonable technical rebound was possible.

“Investors would want to see what sort of economic reforms or plans that Abdullah’s successor would introduce before they return in any significant way,” said a dealer at a foreign securities house.

Meanwhile, market watchers are also keeping an eye on the 2009 Budget which is due to be debated on Monday when Parliament reconvenes.

1 Response to "The spiralling effect not within the horizon of 2009 budget"

New Polls on UMNO: –
1. Should Members of Barisan Nasional converge to form a Single MULTIRACIAL Party?
2. Who do you want as the new Youth Chief for UMNO?
3. Who do you want as the new Deputy President for UMNO?
HERE – http://thexblogs.blogspot.com/

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Must Attend Program

Please go to this link: https://justice4allkuantan.wordpress.com/2008/10/25/invitation-public-forum-the-isa-and-the-police-reform-process-whats-next-after-pak-lah/
To sin by silence when we should protest makes cowards of people - Emily Cox

Siphoning EPF money

On 'Why should Valuecap borrow from EPF?' Syed Shahir Syed Mohamud: MTUC condemns the government's move to bail out Valuecap to support the local stock market using RM5 billion from EPF, as the provident fund is the custodian of the workers' money and not some sort of ‘automated teller machine' for the government.
If at all the EPF were to lend its money to the government, it has to be under the condition that there be transparency and accountability in the activities for which the money has been purposed. We want to know who is doing what with the money that belongs to the workers. This is the hard-earned money of the workers, their retirement plan. How is this bailout plan going to benefit the workers? We also question the reason for this bailout. If the economic fundamentals in Malaysia are strong and reserves sufficient as has been stated several times by the government, then why is there a need to offer so much money to the GLCs? Second Finance Minister Nor Mohamed Yakcop should prove how the EPF would profit from this loan. Bernama had reported that Nor had given the assurance that the loan given out by EPF would reap profits for the fund judging from Valuecap's past performance. But where is the paperwork and calculations to show that this move will benefit the EPF? MTUC is concerned that the loan might be mismanaged or misused and this, in turn, would affect the returns for the contributors. Mere assurances are not enough. We want to proof that this RM5 billion will not go down the drain. (The writer is president, MTUC). Sharyn: The government wants to use our pension money to prop up the Malaysian stock market which is the playing field of the rich people. If so, the government must ensure that the EPF account holders - who are predominantly the poor to average citizens of Malaysia - be guaranteed all of our pension money with a compound 8% growth (interest). It's so selfish and sick of the government to use the poor's pension money to help the rich to make more money with all the risks taken by the poor/average citizen. We can better use the RM% billion loans to Valuecap for our children's education, shelter, medical bills etc. Why not get those rich people to prop up the share market instead? Why should they park their money overseas and gamble with our EPF money instead? Kumar14: Who is behind this Valuecap organisation? Why suddenly, this separate entity is allowed to access funds from the EPF? Are they capable enough to handle it or is it just another desperate and blind move? It has been a very infamous trend where the people's funds are channeled to a company for investment purposes and suddenly POP! the funds disappear and there is nobody to be held responsible but a RM2 shell company. Charge who? Sue whom? The RM2 company (just a registered name)? We have seen this many times. People in power and with connections allow such things to go through and reap/rob the people's wealth and then blame it on organisations which actually don't exist. What if a lot of EPF funds are looted via such scams and nobody is to be pointed at? Where will the government get the funds to replenish the EPF? The people are very bored, disappointed, angry and frustrated at seeing all these dumb and unaccounted for measures being allowed by the government with lame excuses. Please, somebody verify the true purpose, integrity and capability of anybody attempting to use the people's fund.

Raja Petra

Photobucket Ihsan dari blog Go!Malaysian http://gomalaysian.blogspot.com/

ANWAR IBRAHIM

A prosperous future is indivisible from a firm commitment to the principles of distributive justice, the rule of law and a profound respect for human rights.

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justice4allmsia@yahoo.com

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