13 July 2013
The Scenario – A “SEA QE ” Coming
Judging from economic and financial perspective, it surely looks like these countries at the end of the road would have no choice but to try imitating the US Federal Reserves, opening the floodgate for their own Southeast Asian Quantitative Easing (SEA QE ).
On composite national strength, Korea may be easier to find their way out, with strong national enterprises and production.
Malaysia on the other hand has mining and commodity resources for exporting… but less fiscal control.
Surely the property developers would interpret the report with a very different story. They are the optimists, kept encouraging the market to go for it, with seemingly low interest rate. The banks will be more cautious now, property market control measures will help to lessen their credit risk. But when push comes to shave, banks will up the interest rate.
It’s like navigating a ship in the big open sea… without observing what’s coming from the horizon is definitely a grave mistake, for individual households. And a perfect storm seems to be building up….