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Yes indeed is true, this is the final moment and it should be at early stage. If then, Lehman and AIG may be still survive. Late better then nothing and i do positive with this action. But do you feel somthing similar, Danaharta, the word that keep surrounding us during our 1997 currency crisis.
As mentioned, indeed there is no free market in this world. It has becoming a pro-verb for hedge fund and speculators to make huge fortune. But of course because of mis-management at the first place. I use to be a free market advocate but if looking at the recent oil prices, few will question into detail why such price movements are so drastic and if not speculation what it will be? OPEC indicated demand of oil at global scale slow down to 2003 where oil at the level of USD 40 per barrel. Even if dollar is lower, but it cant be 100% contribute to oil increase.
Thats tell the truth of free market, needless to even mention short selling. An equal problem for the financial system that initially designed for hedging but now is more like speculation. The impact, some group of people make huge fortune from a large group of people follow the rules. Also, the most important the poor.
This blog will start and continue to keep outlook of global economy but specialized in Malaysia market. We will discuss how we can make fortune by giving more people publiclly understand the financial system and the objective is also all should be rich in this world.
In conclusion, this new move by FEd and Treasury will definitely create impact in the world market. If there is no bad debt anymore, the U turn is on its way. Even the economy growth may not return fast enough, be sure that hot funds, hedge funds and pension funds .... all will do their job.
Worlwide buy signal emotionally emerged and double bottm has challenged by Dow Jones. Only left is local politics. Maximum is by year end and i believe the market will do well in Q1 2009. Thus, start nibbling equities.
Notes: Source of picture from CNN Money
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