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Friday, October 17, 2008

guarantee deposit = problems coming soon ...

from MalaysiaKini
"Malaysia has issued a guarantee for all bank deposits until December 2010, following the lead of several other nations in a measure to maintain the stability of its financial system."
also in The Star actually.

You know ... I am the type of guy who is not scare of market down turn, recession ... and sometimes not even really care about world war 3 coming.

But when goverment is saying things like guarantee this OK, guarantee that OK, that is the time I get Really scare.  Because everytime they do that, the WAY they say it shows that :

1.  Goverment tells those who don't know yet that there are some problems.  Basically its like this ... some people (5%) predicts something bad may happen and they approach and ask, "what would you do ?". At this time, the 95% folks live life as usual.  So instead of answerting this 5% of people who asked the question, they go and answer to the whole world !  Guess what ?  The 95% of the people would think, "oh ?  got problem meh ?  Sh1t, better take out just to be safe ..."

2.  their announcment is almost always 'incomplete'.  like this one, guarantees are always there why suddenly declare this now ?  why 2010 ?  What happen after 2010 ?  So if 2010 stop guaranteeing, perhaps I should take it out earlier and not wait till last minute ?  So I should take out on 2009 ?  hmm ... better take out 2008, safer that way.  Wait !  Its 2008 already, lets take all my deposits out !

Any finance students who are attending economy 101 knows that announcing news like this would not have any positive impact to the consumer market AT ALL.  On the contrary, raising deposit interest rate by 0.1% could have had much BETTER and BIGGER effect than announcing news like this ...

seems like someone are still living in their Art academy world, why haven't they pass the job to the real finance guy to manage our money yet ?

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