Dominique Strauss-Kahn highlighted yesterday (Oct 9) five sets of actions.
First, as some governments have concluded, the fragility of public confidence has now reached a point that some explicit public guarantee of financial system liabilities is unavoidable.
Second, the state needs to take out troubled assets and force the recognition of losses.
Third, private money is scarce in today’s environment, and loss recognition alone may not be sufficient to induce fresh injection of private capital.
Fourth, a high degree of international cooperation has become urgent.
Fifth, it is now becoming clear that emerging market countries are likely to be hit hard by financial turmoil, despite stronger fundamentals and policy frameworks.
As bleak as the situation now looks, I am convinced that there is a way out of our shared predicament. The trick is to get policymakers around the world to pull in the same direction.
Read more here
The global economic growth is expected to be 0% until the end of next year. The advanced economies in the US,Europe and Japan will grow around 0.5% in 2009. Nevertheless, Nor Yakcop said Malaysian economy will set to grow around 3.5% next year. Now, how is that possible? our fundamentals are stronger than theirs?
Iceland has gone bankrupt yesterday with the biggest bank has been nationalised and their ministers are heading to Russia for some cash. The Indonesia stock market remains closed until next week fear of deteriorating stock values. Bangkok is going down as well. I hope in Bank Negara they are prepared for the worst.
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