Monday, October 06, 2008


Make your own judgment, don't panic! Do what is wise. The recession looks very eminent. It is really time to take pro-active steps to avoid a painful time in the next two to three years which is how long the recession is expected to last.

1. Don't take any loans, buy homes, properties with loans, or even cash. Keep as much cash as possible.
2. Pay off as much of personal loans, private loans, as debt collection will be hastened.
3. Sell any stocks you can even at lower prices.
4. Take money off from Trust/Mutual Funds
5. Don't believe in huge sales forecast from customers, be extremely prudent, lowest inventories, reduce liabilities.
6. Don't invest in new capital.
7. If you are selling homes / properties / cars , do it now, when you can get good prices, they are going to fall.
8. Don't invest in new business proposals.
9. Cancel holiday plans using credit cards.
10. Don't change jobs, as companies will retrench based on 'last in first out'. Stay cool, wait, and if you took all of the above actions and more, you probably will be better off then many.
This is not a rumor. Bear Stearns is the first of many banking and financial institutions that will start falling in the not too future. If Bear Stearns can fall, so can JP Morgan, Citibank, HSBC and the whole world economy comes tumbling down.
US economy falls, the rest will crumble. Recently, the US borrowing 700 billion is just like a medicine plaster to the wound, it won’t cure but will be worsen. India and all those self economies will be the most protected, but not gullible. Europe may be a little stronger, but not China, another giant! Malaysia & Singapore will see significant impact. The world is round; sooner or later it will give everyone the impact.

You may felt that nothing extreme is happening around you. The fact is just like a gold fish in a “slow mode boiling” kettle. The gold fish swimming in the kettle of not feeling the hotness, just a mid-warming but at the end the gold fish will be boiled and cook-up. Bit by bit changes is happening around us, for example price of food is increasing 3 times in a year, many big company/ factories closing down and retrench their staff, oil price in unstable (up & down & up), stocks & shares going unpredictable…
I’m not here to frighten you, just be pro-active and be very sensitive about the local & the world economy.

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