senang cerita macam ni la...

For the past few weeks or so, some of my friends asked me about the world economic collapse. Some turn to me on what they should be worried of a.k.a the backlash from this state of economic panic throughout the world right now, and how does it happen at the first place.

Well, I'm not an economic expert but "senang cerita macam ni la"...

Most of the financial powerhouses are American companies. When I say American, the companies are owned by Americans, based in America and most of the transactions are made in USD (United States Dollar)...These companies like Lehman Brothers, Merill Lynch, AIG to name a few make most of their profits from speculation markets, barely translates as 'make the money out of nothing'...

What does 'make money out of nothing' means? Well, the simplest analogy is like this. You have RM15, and one of your friend told you that you should buy a particular 'nombor ekor' because it will come out tomorrow as a first prize...you buy it based on that speculation, a ticket cost you RM5...and unfortunately you lost, because the number didn't even came out on the next day paper. Your friend come to you again, doing the same thing, with your reaction is also the same, and the aftermath is also the same...repeat that for 500 times, which means by that time you are owing someone else's money...until you couldn't repay it, because the total amount is out of your payable range...As so, you'll be declared as a Bankrupt person.

Imagine 'you' as a biggest investment operator in the world, with the stakes of gamble is bigger than any other company in the world...That company would be declared as bankrupt as well...

As these financial powerhouses collapsed, other financing parties will make their loans or credit terms and conditions stricter than ever to prevent other investment companies from 'suka-suka je nak loan'...thus the term 'credit crunch' is used...

These conventional financial system is always vulnerable to these risks, but their margin of profits is also very high. But now, it is downtrend which means most of the high-stakes shares or currency are not performing well, and most of the investment house is full of debt because of this downtrend.

Does this America financial collapse will effect us badly? My answer is definite YES. Do you still remember 1997 Asia Economic Crisis? well, this time around it will be even worse than that...Even though our government said that it would affect us that much, but believe me...It is.

Americas' government have forked out USD 700 billion (that is seven hundred thousand million) to help those ailing financial and investment powerhouses from collapsing. Their bankruptcy will further deteriorate the financial state in America particularly and also the world as a whole.

Why was that? Why all the world feel the heat? Well, most of the foreign transaction between countries and also multinational companies are made in USD. Most of the countries in the world also have USD as their majority foreign reserves, rather than evergreen gold bar. Basically, the USD is the currency of the world and when it is 'shaky', all the world will tremble.

So, my opinion is...1.start saving, 2.Work Hard, 3. Don't accept VSS (skim berhenti kerja sukarela) and put up a fight, 4.If you are looking for jobs, work with the government agencies, and finally 5.be frugal in your expenditure...

It may help...fingers crossed.