Singaporeans are the most heavily taxed
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but news say people earning more.Originally posted by niwde1980:anyone notice that meepok increase by $0.50 at some hawker center ? and many other things also increase but our pay still maintain... how leh
I am not earning more. You too?
strange leh.
Still, I regard the news very important.
Without it can you imagine how different singapore would be? Get what I mean?
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Modern economies use several methods to prevent bank runs across the whole economy, while still allowing individual institutions to fail. (A system where no bank was ever allowed to fail would cause a moral hazard, and result in poor management of banks).Originally posted by Daddy!!:M13, you are repeating and rewriting what I wrote about MAS pumping in money if there is a mortgage crisis in Singapore, dude. I really cannot follow what you are trying to say. By saying I am un-intelligent, you are double shooting yourself. what a joke you are.
I repeat what i wrote. Open your eyes widely and read again BELOW. Honestly, do you want me to teach you about what is being written by myself?
Take the sub prime mortgage problem in the US as example, ECB and US Fed Reserve can pump in money as much as they want to rescue the banks. The impact on their currencies Euro and US dollar is almost nothing. If there is a mortgage crisis in Singapore and if MAS were to pump in money, Singapore dollar would most likely crash, during which the country's reserve will need to be used to "defend" its currency. that is why, i guess, the govt of singapore is very focused on accumulating reserve because the country needs it to survive, to support the singapore dollar. if this is a good guess, we can also see that US and Europe are much bigger powers and that they can have choices which include choosing liberal democracy without fears.
Deposit insurance systems (such as the Federal Deposit Insurance Corporation in the United States) insure each depositer up to a certain amount, therefore the depositers' savings are protected even if the bank fails. This removes the incentive to withdraw your deposits simply because others are withdrawing theirs. (Note, though, that this only works if consumers trust the insurance system. When the Maryland, US state savings and loan system collapsed in 1985, the underfunded insurance system took more than a year to refund deposits to account-holders at the institutions that failed.)
Central banks act as a lender of last resort. To prevent a bank run, the
Central Bank guarantees that it will make short-term, high-interest loans to banks, to ensure that, if they remain economically viable, they will always have enough liquidity to honour their deposits.
Reserve ratios and Tier 1 capital thresholds both limit the proportion of deposits which a bank can loan out. These methods help ensure that a bank does not have an unsustainably low level of reserves.
According to the World Economic Forum's Global Competitiveness Report, Canada and Australia are tied for the soundest banking systems in the world.
Source: http://en.wikipedia.org/wiki/Bank_run
Defend my @ss lah! If your banking system collapse, all manner of trade will cease to exist. You want to import something, you go to the bank to get letter of credit. Do you think the banks which have become insolvent can issue a letter of credit? Do you think that the exporters from other countries will accept the letter of credit? You go to the bank to borrow money to invest in business, house, car, machinery, etc. The bank will tell you they have no money to loan you. Just imagine life in Singapore without banks, you will get the general idea. -
Originally posted by maurizio13:
So after reading through what you wrote, M13, am I right to interpret that you are trying to say that Singapore wont survive or find it very difficult to survive a mortgage crisis?
Modern economies use several methods to prevent bank runs across the whole economy, while still allowing individual institutions to fail. (A system where no bank was ever allowed to fail would cause a moral hazard, and result in poor management of banks).
Deposit insurance systems (such as the Federal Deposit Insurance Corporation in the United States) insure each depositer up to a certain amount, therefore the depositers' savings are protected even if the bank fails. This removes the incentive to withdraw your deposits simply because others are withdrawing theirs. (Note, though, that this only works if consumers trust the insurance system. When the Maryland, US state savings and loan system collapsed in 1985, the underfunded insurance system took more than a year to refund deposits to account-holders at the institutions that failed.)
Central banks act as a lender of last resort. To prevent a bank run, the
[b]Central Bank guarantees that it will make short-term, high-interest loans to banks, to ensure that, if they remain economically viable, they will always have enough liquidity to honour their deposits.
Reserve ratios and Tier 1 capital thresholds both limit the proportion of deposits which a bank can loan out. These methods help ensure that a bank does not have an unsustainably low level of reserves.
According to the World Economic Forum's Global Competitiveness Report, Canada and Australia are tied for the soundest banking systems in the world.
Source: http://en.wikipedia.org/wiki/Bank_run
Defend my @ss lah! If your banking system collapse, all manner of trade will cease to exist. You want to import something, you go to the bank to get letter of credit. Do you think the banks which have become insolvent can issue a letter of credit? Do you think that the exporters from other countries will accept the letter of credit? You go to the bank to borrow money to invest in business, house, car, machinery, etc. The bank will tell you they have no money to loan you. Just imagine life in Singapore without banks, you will get the general idea.[/b] -
Originally posted by Daddy!!:
Take the sub prime mortgage problem in the US as example, ECB and US Fed Reserve can pump in money as much as they want to rescue the banks. The impact on their currencies Euro and US dollar is almost nothing. If there is a mortgage crisis in Singapore and if MAS were to pump in money, Singapore dollar would most likely crash, during which the country's reserve will need to be used to "defend" its currency. that is why, i guess, the govt of singapore is very focused on accumulating reserve because the country needs it to survive, to support the singapore dollar.
Originally posted by walesa:
What drivel are you on about? If the ECB and US Fed Reserves can "pump in as much as they want to rescue the banks", yet the "impact on their currencies is almost nothing"? Which economic model have your derived your warped notions from - the Gazelle school of economics?
As a matter of fact, the US, EU and other liberal democracies have greater latitude and leeway to pursue such measures stem very much from the structure of their political system which provides for a financial system and economic model capable of handling and dealing with various financial instruments on a grander scale. This regime, on the other hand, operates on a limited imitation of the models observed in those liberal democracies for this regime knows full well a completely free market economy in the mould of a liberal democracy is incompatible with their brand of fascist tyranny and shameless profiteering which ensures the bulk of state revenues return to the monopolies that generate the bulk of income for this regime.
[/quote]
You know what, walesa, you are a genius. -
Hahaha.....Originally posted by Daddy!!:So after reading through what you wrote, M13, am I right to interpret that you are trying to say that Singapore wont survive or find it very difficult to survive a mortgage crisis?
Changing the topic and putting words in my mouth to suit you?!?!
Go read your original post and my reply again, if you still don't understand, go consult your English tuition teacher.Originally posted by Daddy!!:
Why not compare with Switzerland, Norway, Sweden or Germany?
perhaps it is the right time to write about a hard fact.
take the sub prime mortgage problem in the US as example, ECB and US Fed Reserve can pump in money as much as they want to rescue the banks. The impact on their currencies Euro and US dollar is almost nothing. [b]If there is a mortgage crisis in Singapore and if MAS were to pump in money, Singapore dollar would most likely crash, during which the country's reserve will need to be used to "defend" its currency. that is why, i guess, the govt of singapore is very focused on accumulating reserve because the country needs it to survive, to support the singapore dollar. if this is a good guess, we can also see that US and Europe are much bigger powers and that they can have choices which include choosing liberal democracy without fears.[/b]
If there was ever a mortgage crisis in Singapore and the government doesn't pump in money to support the banks. The whole banking system will crash, because in mortgage crisis, there will be alot of bad loans, all these loans will be written off by the banks, causing heavy losses for banks. This might even initiated a run on the bank, because depositors having received information that the government no longer supports the bank, fear for the recovery of their hard earned savings. If you know nuts, don't even start babbling because it will show your stupidity.
This goes to show the intelligence of the pro PAP supporters, how they have been constantly manipulated, hoodwinked and shod shackled by the ruling elites.
If you don't have any intelligence to think for yourself, you will be constantly fooled by others smarter than you.
Suggest you take an online course in "Economics 101" first before you continue blabbing bollocks. -
Originally posted by maurizio13:
you know what, M13, you are a genius.
Why not compare with Switzerland, Norway, Sweden or Germany?
If there was ever a mortgage crisis in Singapore and the government doesn't pump in money to support the banks. The whole banking system will crash, because in mortgage crisis, there will be alot of bad loans, all these loans will be written off by the banks, causing heavy losses for banks. This might even initiated a run on the bank, because depositors having received information that the government no longer supports the bank, fear for the recovery of their hard earned savings. If you know nuts, don't even start babbling because it will show your stupidity.
This goes to show the intelligence of the pro PAP supporters, how they have been constantly manipulated, hoodwinked and shod shackled by the ruling elites.
If you don't have any intelligence to think for yourself, you will be constantly fooled by others smarter than you.
Suggest you take an online course in [b]"Economics 101" first before you continue blabbing bollocks.[/b] -
.... .... ....
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Take the sub prime mortgage problem in the US as example, ECB and US Fed Reserve can pump in money as much as they want to rescue the banks. The impact on their currencies Euro and US dollar is almost nothing. If there is a mortgage crisis in Singapore and if MAS were to pump in money, Singapore dollar would most likely crash, during which the country's reserve will need to be used to "defend" its currency. that is why, i guess, the govt of singapore is very focused on accumulating reserve because the country needs it to survive, to support the singapore dollar. if this is a good guess, we can also see that US and Europe are much bigger powers and that they can have choices which include choosing liberal democracy without fears.
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Originally posted by Daddy!!:
Obviously you chose not to understand what I have explained.
Take the sub prime mortgage problem in the US as example, ECB and US Fed Reserve can pump in money as much as they want to rescue the banks. The impact on their currencies Euro and US dollar is almost nothing. [b]If there is a mortgage crisis in Singapore and if MAS were to pump in money, Singapore dollar would most likely crash, during which the country's reserve will need to be used to "defend" its currency. that is why, i guess, the govt of singapore is very focused on accumulating reserve because the country needs it to survive, to support the singapore dollar. if this is a good guess, we can also see that US and Europe are much bigger powers and that they can have choices which include choosing liberal democracy without fears. [/b]
IF YOU DON'T PUMP IN MONEY TO SUPPORT THE BANKS, THE BANKS WOULD COLLAPSE DUE TO BAD DEBTS.
ASK YOURSELF. DO YOU WANT TO PUT MONEY IN A BANK WHICH HAS MADE ALOT OF BAD LOANS THAT THEY CAN'T RECOVER AND SUBSEQUENTLY WRITE OFF???
IF THE BANKS BECOME INSOLVENT BECAUSE OF MORTGAGE CRISIS, NOBODY WOULD WANT TO PUT MONEY INSIDE BECAUSE THEY KNOW THEY CAN'T GET BACK THEIR MONEY.
IF THERE ARE NO DEPOSITORS, HOW IS THE BANK GOING TO FUNCTION???
IF THE BANKS CAN'T FUNCTION HOW DOES IMPORT OR EXPORT OCCUR, BECAUSE NOBODY WOULD ACCEPT A LETTER OF CREDIT FROM AN INSOLVENT BANK.
MAYBE YOU CAN EXPLAIN THESE TO ME INSTEAD OF REPEATING YOUR CRAP.
PLEASE RESPOND TO MY POINTS AND STOP POSTING OTHER CRAP. -
maurizio13, you are a genius.
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Take the sub prime mortgage problem in the US as example, ECB and US Fed Reserve can pump in money as much as they want to rescue the banks. The impact on their currencies Euro and US dollar is almost nothing. If there is a mortgage crisis in Singapore and if MAS were to pump in money, Singapore dollar would most likely crash, during which the country's reserve will need to be used to "defend" its currency. that is why, i guess, the govt of singapore is very focused on accumulating reserve because the country needs it to survive, to support the singapore dollar. if this is a good guess, we can also see that US and Europe are much bigger powers and that they can have choices which include choosing liberal democracy without fears.
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An abstract from a working paper from Wharton School of Business in University of Pennsylvania:Originally posted by Daddy!!:Take the sub prime mortgage problem in the US as example, ECB and US Fed Reserve can pump in money as much as they want to rescue the banks. The impact on their currencies Euro and US dollar is almost nothing. If there is a mortgage crisis in Singapore and if MAS were to pump in money, Singapore dollar would most likely crash, during which the country's reserve will need to be used to "defend" its currency. that is why, i guess, the govt of singapore is very focused on accumulating reserve because the country needs it to survive, to support the singapore dollar. if this is a good guess, we can also see that US and Europe are much bigger powers and that they can have choices which include choosing liberal democracy without fears.
Central banking is intimately related to liquidity provision to banks during times of crisis, the lender-of-last-resort function. This activity arose endogenously in certain banking systems. Depositors lack full information about the value of bank assets so that during macroeconomic downturns they monitor their banks by withdrawing in a banking panic. The likelihood of panics
depends on the industrial organization of the banking system. Banking systems with many small, undiversified banks, are prone to panics and failures, unlike systems with a few big banks that are heavily branched and well diversified. Systems of many small banks are more efficient if the banks form coalitions during times of crisis. We provide conditions under which the industrial organization of banking leads to incentive compatible state contingent bank coalition formation. Such coalitions issue money that is a kind of deposit insurance and examine and supervise banks. Bank coalitions of small banks, however, cannot replicate the efficiency of a system of big banks.
I know it's difficult for you to comprehend with your inadequacies, but please make an effort. -
As part of the ongoing Bank series, Practitioners in Development, Mario Blejer, Director of the Centre for Central Banking Studies and Advisor to the Governor, Bank of England came to the Bank on October 22nd to discuss his experiences managing the financial crisis in Argentina in 2002. John Page, a sector director in the BankÂ’s Poverty Reduction and Economic Management unit, made opening remarks. Page noted the importance of the series was to help the Bank understand how its policies actually impact events on the ground. He provided some background information on Blejer, and the chairman of dayÂ’s lecture, Murilo Portugal, Executive Director of the IMF, and two discussants, Dr. Vijay Kelkar, Minister of State in IndiaÂ’s Ministry of Finance, and Agustin Carstens, Deputy Managing Director of the IMF and former Undersecretary of Finance and Public Credit for Mexico.
Blejer noted his public service only lasted one year, but at a serious time in both ArgentinaÂ’s history. He said the biggest lesson for him was the clear difference between how one thinks during normal times from what is necessary during a crisis. During a crisis, a different policy making structure is necessary, one which requires imagination and boldness. He said the lessons one may draw from the Argentina experience may not be applicable to normal circumstances. Crisis management has distinct phases. First, one must understand the nature and causes. Then one must define the trade offs one will be facing since any policy decision made will have some down side. An operational strategy must be defined, followed by issues of implementation. Blejer emphasized the importance of being persistent in following a chosen strategy. Changing strategies in the middle of implementation is dangerous, he said. The final step is to draw lessons from the experience.
The crisis was an attack on the currency as well as a bank run. Blejer suggested one might not have been able to happen without the other. He also noted additionally there was a debt crisis. The currency crisis centered on the convertibility regime, which was introduced in 1991 after a period of rapid inflation. The goal was to fix the currency rate and limit the central bank from changing monetary policy. It positively affected the rapid inflation rate, and the economy began growing again. But there were weaknesses in the regime as well. The fixed currency rate made the economy uncompetitive with other countries. There were also inconsistencies in the countryÂ’s macroeconomic policies which increased debt. Finally, during the late 1990Â’s, capital flows reversed, which Blejer suggested was in part caused by serious economic crises from other parts of the world. Of the three reasons, Blejer believes the faulty macroeconomic policies were the most damaging. The rigidity of the system did not allow it to recover from shocks. Public debt began to balloon by the end of the decade. This was exacerbate by significant public expenditures and the start of a recession in 1998.
The banking crisis occurred after more than a year of declining deposits, something Blejer called unprecedented. So it was not a traditional bank run. He said the reason was government abuse of the banking sector. People took their money out of the banks, he said, because they feared government policies would make the banks insolvent and the government would confiscate the money. The fear developed because he believes the public was observing the government undermining the private sector in the bank portfolios. This was occurring during 2001. The government began forcing the sector to take on more and more government bonds. The interests rates were high, so the initial reaction from the banks was positive, but eventually they realized the government might default on the bonds, so they began to refuse the deposits, which the government continued to force upon the banks. Interest rates began to rise and the price of the bonds fell. By the end of 2001, the banks implemented withdrawal restrictions as investors began to panic. The panic resulted in public riots and the fall of the government by start of 2002. Currency was converted to pesos, which created more debt for the banks. To avoid a total collapse of the sector, the government sought to stabilize the banks by providing further issuances of bonds. At that point, Blejer was appointed Director of the Central Bank. The run was continuing despite restrictions the bankÂ’s were placing on withdrawals. A run began on the peso as well, as the exchange rate began to climb. The Central Bank sought to maintain liquidity in the banking system in order to defuse a bank run. Such an effort would create hyperinflation, one of the trade offs he and colleagues had to consider: either have hyperinflation or allow the banking sector to collapse. To avoid either scenario meant slowing the bank run and provide some liquidity. Importantly, was to get investors to buy Central Bank assets rather than government bonds. Also critical was to slow the devaluation and chaos of the currency market. The strategy was strongly opposed by the IMF which advised no intervention from the Central Bank. The Central Bank settled on a dual strategy of intervention which included higher interest rates and have a falling exchange market intervention. Some banks had to be closed: about 3%. Short term bills were created by the Central Bank. Devaluation was not prevented, but chaos was averted.
Source: World Bank -
Deposits continued to fall, but finally the rate slowed and began to grow after six months. Interest rates fell by the fall. Once the exchange rate was stabilized, inflation was halted. Blejer was careful to note the problems are still not fully resolved and only reflect the current situation. The bond situation still needs restructuring, but slowly. He characterized the worst of the crisis as over. The strategy worked, he said, because fiscal accounts can turn around to allow absorption of liquidity. They were adjusted through distorted means, but that they could be adjusted was paramount. Fiscal accounts improved because the debt is not being serviced, he said. Additionally, there were some who put political pressure on the Central Bank to have a more expansive policy to create hyperinflation. But Blejer said the Central Bank and many in government realized this could lead to civil strife and resisted. Importantly for the future was to secure in the publicÂ’s mind that property rights are sacred.
Kelkar compared ArgentinaÂ’s and IndiaÂ’s fiscal problems. He said India suffered major internal and external economic shocks similar to Argentina, and bank runs also occurred. India overcame its crisis in the early 1990Â’s. The outcome was different because India did little off shore borrowing. Personal savings was also a determinant. Kelkar suggested flexibility in the labor market played a role. Also IndiaÂ’s democratic leanings and strong institutions allowed the country to absorb these shocks more easily. Kelkar said that earlier and stronger intervention by the IMF would have alleviated Argentina from much pain. A key problem for Argentina was lack of market access which the IMF could have helped with larger resources. The Fund program also needed to be longer because of the significant structural change that was necessary. The Fund does not give enough attention to the political economy of reforms, Kelkar said, and needs to reexamine these fundamental macroeconomic issues more closely in the future.
Carstens said he would discuss lessons learned from the crisis from his perspective within the IMF. He said, in addition, to the reasons Blejer cited as the core of ArgentinaÂ’s problems, he had two more reasons. He said there was an involuntary cover up of the regimeÂ’s flaws. He also said active dollarization of declining currencies helped speed up the instability of the regime. He noted that the situation remains difficult and much of the future success relies on how well the current government can implement sound fiscal policies that Blejer help initiate. The Fund has drawn the following lessons from Argentina. First, the more needs to be done on crisis anticipation and prevention. Second, careful assessment of the links between structural reforms and growth is needed. Third, a new focus is needed for debt dynamics on crisis prevention and resolution. Fourth, crisis resolution in Argentina illustrates the importance of timely debt restructuring. Fifth, the crisis illustrates the pervasive effects of default on the financial system and macroeconomic policies. Sixth, an exchange rate regime needs to feed a countryÂ’s economic and political realities. Seventh, there are limits to the ability of an exchange rates to discipline other aspects of economic policy to insure stability. Among the lessons the Fund has learned included: that it has shortcomings in identifying vulnerability in countries in crisis; that it needed to reexamine its seal of approval; and that the Fund shouldnÂ’t provide financing in situations where the debt dynamic is unsustainable.
Source: World Bank -
Once a bank run occurs it will most likely lead to a depreciation of the currency.
Seriously, if you don't have any economics background stop making a fool of yourself here. Go take a course in economics before blabbing economics here. -
Originally posted by maurizio13:
I sometimes wonder why you actually bother to explain in such great detail (ie.by citing references, doing extensive research or even bothering to work out calculations for a certain misguided zebra) to those who are either intellectually-challenged, oblivious to reality or are simply unable/unwilling to accept the perspective from which you're viewing the matter (nevermind they don't share the same opinions on the matter).
An abstract from a working paper from Wharton School of Business in University of Pennsylvania:
[b]Central banking is intimately related to liquidity provision to banks during times of crisis, the lender-of-last-resort function. This activity arose endogenously in certain banking systems. Depositors lack full information about the value of bank assets so that during macroeconomic downturns they monitor their banks by withdrawing in a banking panic. The likelihood of panics
depends on the industrial organization of the banking system. Banking systems with many small, undiversified banks, are prone to panics and failures, unlike systems with a few big banks that are heavily branched and well diversified. Systems of many small banks are more efficient if the banks form coalitions during times of crisis. We provide conditions under which the industrial organization of banking leads to incentive compatible state contingent bank coalition formation. Such coalitions issue money that is a kind of deposit insurance and examine and supervise banks. Bank coalitions of small banks, however, cannot replicate the efficiency of a system of big banks.
I know it's difficult for you to comprehend with your inadequacies, but please make an effort.[/b]
Your patience in doing your darndest to explain linear algebra concepts to those who have barely mastered the workings of basic arithmetic is indeed admirable.
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M13, When you start writing about Argentina, you make me laugh. It is funny because you are confirming what I write about.
Take the sub prime mortgage problem in the US as example, ECB and US Fed Reserve can pump in money as much as they want to rescue the banks. The impact on their currencies Euro and US dollar is almost nothing. If there is a mortgage crisis in Singapore and if MAS were to pump in money, Singapore dollar would most likely crash, during which the country's reserve will need to be used to "defend" its currency. that is why, i guess, the govt of singapore is very focused on accumulating reserve because the country needs it to survive, to support the singapore dollar. if this is a good guess, we can also see that US and Europe are much bigger powers and that they can have choices which include choosing liberal democracy without fears.
Read again. What did I write ? -
Originally posted by Daddy!!:
Third, a sound banking system and deep and sophisticated capital markets will be even more crucial in the future. As pointed out earlier, banks lie at the heart of the entire intermediation system. They play a central role in the smooth functioning of the financial intermediation process. They do so either directly through their own deposit taking and lending operations, or as intermediaries to other financial institutions. If there are structural problems in the banking sector, banks will not be able to effectively transmit monetary policy signals throughout the economy. Furthermore, if there are unsound banks in the financial system, the central bank may need to act as a lender of last resort. This may conflict with the central bank's objective of maintaining price stability.
M13, When you start writing about Argentina, you make me laugh. It is funny because you are confirming what I write about.
Take the sub prime mortgage problem in the US as example, ECB and US Fed Reserve can pump in money as much as they want to rescue the banks. The impact on their currencies Euro and US dollar is almost nothing. [b]If there is a mortgage crisis in Singapore and if MAS were to pump in money, Singapore dollar would most likely crash, during which the country's reserve will need to be used to "defend" its currency. that is why, i guess, the govt of singapore is very focused on accumulating reserve because the country needs it to survive, to support the singapore dollar. if this is a good guess, we can also see that US and Europe are much bigger powers and that they can have choices which include choosing liberal democracy without fears.
Read again. What did I write ?[/b]
Source: Monetary Authority of Singapore Policy Statement
You really lack understanding of economic concepts, a bank can never function without the support of the central bank. -
The central bankÂ’s role in regulating and supervising financial institutions is one that has developed gradually over time. In the very beginning, the early central banks saw themselves as commercial banks with a normal profit motive, and used their advantageous monopoly position to limit and prevent competition from other commercial banks.
It was only in the second half of the 19th century, that central banks effectively became non-commercial and non-profit maximising. This eliminated the conflict of interest and led to the central bankÂ’s acceptance of responsibility for the health of the banking system as a whole. They took on the role as Lender of Last Resort, and were also responsible for the regulation and supervision of financial institutions to ensure the stability of the financial system.
Regulation refers to the setting of prudential rules and guidelines for financial institutions, so as to make sure that they are sound, while supervision consists of ensuring that these rules and guidelines are complied with.
A stable financial sector is crucial to the health of the overall economy because it is so closely connected to every other sector of the economy through its role of credit provision. When large scale failures occur among financial institutions, the supply of credit dries up, which in turn forces other industries to cut back on their activities due to the lack of funding. Also, because of the susceptibility of the financial sector to crises of public confidence, a problem that hits one part of the financial sector can quickly spread to the rest of the sector and then to the economy more widely.
Source: Monetary Authority of Singapore: Regulation and Supervision of Financial Institutions
Go tell a university economics lecturer that the central bank will not bail out banks in financial distress, I think he will laugh his pants off. -
You are funny, M13. When did I ever say that MAS will not bail out banks in times of banking crisis ?
And you write so much, in the end, you are re-writing what I wrote.
Please say after me, I say "A B C and Do Re Mi". Altogether !
Take the sub prime mortgage problem in the US as example, ECB and US Fed Reserve can pump in money as much as they want to rescue the banks. The impact on their currencies Euro and US dollar is almost nothing. [b]If there is a mortgage crisis in Singapore and if MAS were to pump in money, Singapore dollar would most likely crash, during which the country's reserve will need to be used to "defend" its currency. that is why, i guess, the govt of singapore is very focused on accumulating reserve because the country needs it to survive, to support the singapore dollar. if this is a good guess, we can also see that US and Europe are much bigger powers and that they can have choices which include choosing liberal democracy without fears. -
Maybe you can explain what you meant by, "If there is a mortgage crisis in Singapore and if MAS were to pump in money, Singapore dollar would most likely crash, during which the country's reserve will need to be used to "defend" its currency."?Originally posted by Daddy!!:You are funny, M13. When did I ever say that MAS will not bail out banks in times of banking crisis ?
And you write so much, in the end, you are re-writing what I wrote.
Please say after me, I say "A B C and Do Re Mi". Altogether !
Take the sub prime mortgage problem in the US as example, ECB and US Fed Reserve can pump in money as much as they want to rescue the banks. The impact on their currencies Euro and US dollar is almost nothing. [b]If there is a mortgage crisis in Singapore and if MAS were to pump in money, Singapore dollar would most likely crash, during which the country's reserve will need to be used to "defend" its currency. that is why, i guess, the govt of singapore is very focused on accumulating reserve because the country needs it to survive, to support the singapore dollar. if this is a good guess, we can also see that US and Europe are much bigger powers and that they can have choices which include choosing liberal democracy without fears. -
Sure, i am going for my family buffet now. After that, lets discuss further.Originally posted by maurizio13:Maybe you can explain what you meant by, "If there is a mortgage crisis in Singapore and if MAS were to pump in money, Singapore dollar would most likely crash, during which the country's reserve will need to be used to "defend" its currency."?
have a nice day, m13.
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The European Central Bank (ECB) injected €61 billion [4], and the US Federal Reserve System injected $68 billion into their respective banking systems on Friday, August 10, 2007 in order to calm their markets.[5][6] The following day, August 10th, saw widespread volatility resulting from fears about tightening credit conditions. While U.S. stock markets ended the day relatively unchanged after extreme volatility, other indexes fell. London's FTSE 100 index fell 3.7% in its worst day in four years, while Paris' CAC 40 index lost 3.1%, and Germany's DAX index fell 1.4%. The followed jitters in Asian markets: Tokyo's Nikkei share index fell 2.4%, while Hong Kong's Hang Seng Index fell 2.8%.[7] The US Federal Reserve further injected $24 billion into the US financial system that day.Originally posted by Daddy!!:Sure, i am going for my family buffet now. After that, lets discuss further.
have a nice day, m13.
Source: Wikipedia - subprime mortgage financial crisis
Yah!
Go do some research first before blabbing economics to me, else you will look like a moron.
Your "pump" is equivalent to ECB and Feds "injected", therefore your statement that Singapore's MAS doesn't inject money into the financial system in times of crisis is wrong. Do me a favour, go read up on economics 101 before talking to me about economics again. -
Discuss further?Originally posted by Daddy!!:Sure, i am going for my family buffet now. After that, lets discuss further.
have a nice day, m13.
No thanks, go learn economics before you blab.
I have no desire to talk to an idiot, I already showed you the policies statement from MAS.
You are pwned! -
our economists are also wondering. here is the news article which you might have missed out:Originally posted by Fingolfin_Noldor:Quite frankly, lots of services are provided by the Govt or their related companies and we pay for them. Naturally, there will be conflicts of interest for which our esteemed Govt has been quick to make use of this situation to its maximum benefit.
Whether or not the economic growth helps the average joe is an academic question for which I hope some economists would answer but I doubt they would given the miserly bits of information the Govt doles out.
And oh yes, how much sooner before the resident morons arrive?
Title : Middle class wage stagnation could lead to social instability
Date : 11 January 2007 1856 hrs (SST)
URL : http://www.channelnewsasia.com/stor.../251939/1/.html
SINGPAORE: Middle class wages have been stagnant in the past 5 years, according to economists, and this could lead to social instability
These concerns were shared at the annual Institute of Policy Studies Singapore Perspectives conference.
Economists believe a US economy slowdown in business and consumer spending may cause problems for Singapore, but as Singapore is tops in the ASEAN resilience index, it should be able to weather external shocks, thanks to a diversified economy and strong Asian demand.
They predict that growth going forward will be above 3 to 5 percent.
The long term growth speed limits for a mature economy was previously in the 3 to 5 percent range.
However, economists are asking who this growth is for. The income of the bottom 30 percent of the population has fallen. What is more worrying is the fact that the majority of Singaporeans in the middle class has only seen about a 1 percent increase in nominal income in the last 5 years.
It is not just Singapore - economists say stagnant wages is a global problem, and the chief reason for this is globalisation.
India and China are introducing a large pool of skilled and unskilled labour to compete with the labour forces of industrialised countries.
Singapore is susceptible to this because of its open economy.
123, 000 jobs were created last year and economists estimate some 70 percent of these jobs went to foreigners.
"With the rate of immigration even among unskilled and semi skilled labour at a rate twice of what we experienced in the 90s, at a rate fastest in the developed world, the question is does this dampen our real wages as we grow? Does the strategy itself dampen real wages and depress real wages at the low and middle end of the spectrums? They are sacred cows but we should step back and think about them," said Yeoh Lam Keong, Vice President, Economic Society of Singapore.
Another reason cited for middle class wage stagnation, is the move by the government to cut CPF employer contribution rates for older workers by 4 percentage points over the last 2 years.
"So if you were a worker in the 50-55 age group, you could have seen your wages fall as much as 10 percent over the last 3 or 4 years. Now with the economy improving, the government could bring that back, the increase is 1 or 2 percent. I'm in support of CPF tinkering but probably it happens far too often, but I think there's probably some justification to look back and think that the restructuring was a bit too aggressive on the CPF side and it has contributed somewhat to a very sandwiched middle class," said Chua Hak Bin, Director, Asia Pacific Econ & Market Analysis, Citigroup Global Markets Singapore.
The government is looking at increasing CPF by 1 to 2 percent in 2007.
Economists say workfare should become a more permanent pillar of the economy so as to cushion growing inequality.
Adding that long term middle class wage stagnation could lead to social instability. - CNA /dt
of course the 70% of the jobs that went to foreigners was almost immediately changed to 45%