Can summarize? too lazy to click on the link.
Ask the writer why didn't he predict the US Subprime loan crisis 5 years earlier...
Scuba & Father... For Life
I happen to think that he is quite correct... and that our government knows it too... the question is on how to deflate some or all of the bubbles without actually bursting any one of them. That's really tricky coz there are too many moving parts.
Now, with the experience of this meltdown and collapses it is indeed concerning to see what Singapore is doing: riding the same horse again, simply following the US. The European crisis has shown that countries with substantial manufacturing industry have an advantage. What does SG have?
The bubble are blown by people in Wall Street, who pay themselves big fat bonus
When bubble burst, government bail out and the CEO leave the company with a golden hand shake
Either way, they are day light robbers, who can legally rob you of all your money
I eats, shoots & leaves
Didn't you notice that despite of all the opposition. 6.9 is still gathering steam. SG must be using the growth to stem this bubble bursting.
Warning is of no use if the target audience is mesmerised with delusions and deaf to sound advice. The herd instinct takes over.
Not to forget our public debt is heavy too.....
111.4% of GDP (2012 est.)
country comparison to the world: 12
106% of GDP (2011 est.)
note: for Singapore, public debt consists largely of Singapore Government Securities (SGS) issued to assist the Central Provident Fund (CPF), which administers Singapore's defined contribution pension fund; special issues of SGS are held by the CPF, and are non-tradable; the government has not borrowed to finance deficit expenditures since the 1980s
Art is perception; Perception is art.
As for any doomsday prophecies, it is not a likely scenario. A recession is highly possible, but not necessarily a depression. Singapore has been diversifying it's economy over recent years. Take for example building Singapore as a hub for healthcare services, further education and more places of attraction for tourism. When a recession hits, these recession proof industries are likely to grow and will provide partially compensate for jobs growth lost in other industries. Singapore's reserves are fairly sizeable too, recall the 1997 recession and why our currency did not take the same degree of hit as did our neighbours. Banks have also been strengthened through mergers. MAS does a wonderful job of regulating the activities of local banks, keeping a lid on what it deems to be risky. The industry was also deregulated in a way that allowed foreign competition, and in doing so spread the risks around and not just on local banks like in 1997. I believe that there were many other initiatives that were implemented over the recent years, many of which I do not know of.
Having foreigners to contribute to the economy has it's privileges too. In a recession, foreigners will inevitably make way and will account for many of the job losses, so it is not like as if only Singaporeans will loose their jobs. CPF contributions will be slashed, the SGD will depreciate and tax incentives to companies will be dished out, this will help to give cause to large foreign companies to stay put. Some industries, and consequently Singaporeans will still be affected more than others.
As for property, it is inevitabe that prices will plunge as foreigners will leave the country and demand for housing falls. Borrowing restrictions and payment schemes will be revised. If Singapore is deemed by foreigners to be attractive to live and work in, it will only be a matter of time others will come to take their place or these people may return when opportunities come about, and the property cycle starts again.
Our million dollar ministers have plans, it has been demonstrated before. There is simply no way to avoid economic downturns. So for the folks reading this, make sure you have your plans as well. Do not over burden yourselevs with debt and make sure to save for the rainy days, or years where necessary, to ride out a prolonged recession. Of course, some flexibility in expectations is also needed as jobs that are lost may not be available again, a second or third skill set is required of all of us. Not a big deal if recession comes our way, I think we can manage it together.