Monday, 5 November 2007

... AND HERE IT IS, ANOTHER SUB-PRIME CRISIS

Right after the rattle of sub-prime mortgage crisis seems to subside, another sub-prime menace is already here, waiting for us in the horizon. This time a much bigger sub-prime crisis, the credit cards debts estimated at US$915 billions. We will have to accept it now that the US is heavily indebted. The Americans are living their 'American Dreams' on the borrowed money. Unlike the Euros, the US dollar is not back-up by gold reserves. It is back-up by the words 'In God We Trust'. It is a matter of time the crisis in the US would burst wide open. When thats happen, we will go down the drain with them.

On top of that, the petrol price is keep on rising, as a result of weak US Dollars. Petrol price is quoted in US Dollars in the world market and if you remember Dr. Mahathir had many times suggested for petrol to be traded in the Euros, a suggestion that fell into deaf ears. Now we are paying for the price.

I filled up my car this morning and got shocked that the price today is £1.01 (around RM7.00) per litre. It was £0.69 when I arrived in the UK. A more than 40% increase. So brace yourself for an evitable rise of gasoline price in Malaysia, which is happening very soon or latest right after the anticipated General Election.

6 comments:

akula said...

its a chain reaction effect. Semua bakal naik.

merapuman said...

masalahnya, mereka yang berpendapatan rendah pasti terasa.

east43street said...

akula....
Its definitely will trigger chain reaction. But sadly most of us are not ware of the sub-prime issues and how dangerous it can be. Of course most central bank would play down the issues, but in the meantime they have been pumping billion of dollars.

merapuman....
Itu yang sedihnya. Yang berpendapatan rendah yang akan jadi mangsa, tak kira apa jenis krisis kewangan pun.

merapuman....

merapuman said...

btw, just wondering. how much is the pay when u start work kat sana? katalah executive IT.

kalau di malaysia, avergae is RM2K.

east43street said...

merapuman......
Kat sini probably £3K to £4K, especially senior macam hang...

east43street said...

merapuman....
Kalau entry level mungkin start £2K.