Why not to expect recovery anytime soon

In Economy, Emerging markets on 05/09/2012 at 7:48 am

(Or “Kishore Mahbubani’s thesis about Asian power proven wrong again”)

It seems likely the long-term recessionary scenario as described by Mr Taylor, Mr Reinhart, and Mr Rogoff is what economies in the West are now experiencing. Within developed markets, the financial sector occupies a larger proportion of the general economy than ever before. In the 1990s and 2000s, the level of private debt on bank balance sheets far outweighed that held by sovereigns, despite a simultaneous increase in sovereign debt levels. Given the greater severity of recession Taylor concludes is likely following a period of both private and public debt accumulation, the damaging effects could go on for some time.  Warning: very chim

Let’s see if the BRICs and other Asian economies can save S’pore from a recession or slow down like what a certain PAP apologist is implying about the days of ang moh and Jap tua kee are over: now China, India and Asian (ex Japan) tua kee. He got his balls blown-off over Standard Chartered!

  1. Kishore Mahbubani is wrong because he is an apologist for PAP,whether right or wrong.
    Do they know what they are doing? [1]
    Thursday, 16 August 2012

  2. Global economy remains stagnant largely due to overall low aggregate demand. Middle / working class in Western countries encumbered with high private debt while the mythical, well-off Chinese/Indian consumer has not appeared to save the world economy.

    In the short term in Singapore, the government can either perform self-castration on state-linked vehicles in order to seek lower costs in non-tradeable realms of property, utilities, etc or once again, turn to exploit foreign labour to remain competitive.

    Unfortunately, the latter is most likely to occur due to past track record / behaviour / thinking that they can get away with doing it rather than take on the challenge of taking on entrenched interests.

    4 more years to 2016. There’s a difference between problem recognition and fixing the problem. Let’s see what LHL and company can do.

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