Glass Steagall Act

I was still in darkness when Glass Steagall Act 1933 was repealed in 1998 i.e. my life was still upside down. I was just starting my banana farm then. I was broke like hell. I had to walk 5km to the Kuala Pilah town just to mail a job application letter. Many times I had to drink a tap water to avoid thirst because when I was in town I just had enough sen to cover my bus fare home.

In 2002 With God's grace my mother got some money inherited from my late grandfather thus I bought my Perodua Kancil i.e. the cheapest new car in Malaysia then BUT the people of Kuala Pilah reacted as if they wanted to cut my hand. WHY? Is it that wrong for me to have my own car? IDIOT ! Moreover is it that wrong for me to marry a foreigner?

Coming back to Glass Steagall Act. Honestly even if it is NOT repealed I doubt that the current US credit crunch (which is a global crisis now) could be averted. The reason being Americans are used to non monetary instruments (Credit Cards etc) rather than paying cash.

Obviously many items were overlooked when Glass Steagall Act was repealed even though on paper Riegle-Neil IBBEA 1994 and GLBA of 1999 looked promising. Maybe its time for President Obama to look into this matter again.

RM 60 Billion Stimulus Package

The honorable Deputy Prime Minister and Finance Minister Datuk Najib unveiled the second stimulus package last Tuesday. These are my comments i.e.the undergraduate of Edwards University of Saskatchewan Canada.

1)The amount of RM60 Billion to be spread in 2009 and 2010 - SURPRISE as it is 9% of the Gross Domestic Product
2)Estimate government deficit of 7.6% for 2009 - MANAGEABLE for now
3)Forecast GDP of -1% to +1% for 2009 - EXPECTED although I doubt a positive number is attainable.
4)Carry Back Losses - TIMELY i.e.should have been done years ago. Many quarters expect both tax cuts for companies and individuals but obviously the government still need to maintain its revenue.
5)Car Scrapping Scheme for car owners more than 10 years old to buy Proton and Perodua (discount RM5,000) - Good idea. The government has a duty to protect the local car industry no matter how bad the economy is.
6)One year freeze on housing loan to benefit those retrenched or unemployed due to Voluntarily Separation Scheme - WELCOME but what if the borrower still out of job after one year. May contribute to higher NPL.
7)The RM2 Billion Lower Cost Terminal to be built near KLIA - This is indeed a mega project to be completed by 2011. I lauded the project. Rather than building a separate second LCCT just 10 or 20 km from KLIA which needs another runway and land acquisition of poor Felda settlers, its better for Malaysian Airports Holdings Berhad to build the new LCCT nearby KLIA.
8)Possibility of another stimulus package - YES. There is always Post Balance Sheet event.

I wonder where were those smart Malaysians who criticize me badly during my PTD interview. They battered me for coming home to Malaysia without my Bachelor of Commerce,my poor English (am I) and that I could NOT take the burden of learning Finance.

Hei you Malaysians! you have tons of certificates, I ain't got nothing. Brush up for better ideas.