Thursday, October 23, 2008

To save or not to save.. that's the question.....

What good news is there for us to read as far as economic globally and domestically is concerned, The Dow just lost 500 + points, which of course sending shiver to rest of the other Indexes, and no one is spared, some economic experts say, the worse is yet to come, is it true? I dont know, the only thing i know is no one economic expert can tell us what to do concretely to save the world, what they holler about is to inject, pump in, rescue and to save Corporations upon Corporations.

Our newly swapped Finace Minister announced last week,that the government would use RM 5 billion to buy undervalued stocks in the market. Was it a good news, did the local bourse react positively to the news, yes but at a very miserable hike. RM 5 billion taken from the Employee Provident Fund (EPF), the people's money to buy undervalued stocks? will it be transparent in its dealings, will this crusade of the government bring about the benefis to the peoples in general, or just the privilledged few( you know what i mean, come and save me, i am your friend stuff) ,
ya they call it "bail out"," cronyism " or "nepotisme"

The EPF is meant to be a retirement saving fund for its contributors, any risky or haphazard investment should not even be considered, as they say high risk, high gain,i dont want this, what if my saving in the EPF falls to side of high risk and no gain?

You see, stock market is a very dangerous place, trillion upon trillions can be wiped in just a day, even the US has used so much to save the corporations, ABC, EFG, is the economic getting better, the answer is no.

Why cant we go back to the fundamental of economic logic, the demand and and supply teori, i am no economic expert, but i do know the fundamental, instead of using the money to save the corporations or so called buying the undervalued stocks, the government should give the money to people directly, and let us have more disposable income to buy products and services, for every dollar that is rotated many times, the economic will then be alived, you agree?

If a stock is undervalued, dont worry they are smart people out there who will make a "buy" call, on that stock, no need to save lah....

P/S, we dont call it Economic anymore, we should call it Greednomic, it is the greed of the man that kills.

1 comment:

  1. though i dont have EPF, when i heard that they took out 9 billion to bail the stocks, i was also sort of angered.. how could they.. those r not their money, its the taxpayers..not them.. and i can imagine what kind of stocks they will bail.. do u know which type? no need to spell that out...