Badawi to Quit but not before Anwar is put under ISA?

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Sep 17 2008
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Two bailouts within a month and the amount of taxpayer’s money for the exercise amounted to a staggering $185 billion. After prepared to put up as much as $100 billion for mortgage giants Freddie Mac and Fannie Mae, the U.S. government is injecting $85 billion to bailout American International Group Inc.’s (NYSE: AIG, stock) but it appears more like a take-over instead of a bailout mission since the government will get 79.9 percent stake in AIG. The spillover effects can be seen elsewhere including Singapore when anxious and worried Singaporeans queued up for a second day on Wednesday to surrender policies in exchange to whatever little money left on fears the U.S. insurance giant could tumble.

Although the Dow reacted positively and closed above 11,000 points, the stocks reverse and erased all the gains today during early trading. The fact is investors are still nervous and the risk of more financial system’s problems could emerge. Let’s face it – how many more billions of dollars of taxpayers’ money can the government use to rescue problematic companies? The Commerce Department reported Wednesday that housing construction dropped a surprise 6.2 percent last month, the lowest level in 17 years and larger than the 1.6 percent drop analysts expected.

Taking the cue from the Singaporeans who were willing to surrender their policies in order to hold “Cash” instead, it’s everyone’s (those who have sold-off their stocks earlier) hope that the repeat of 1997-1998 Asia Crisis’s effect will arrive soon. If you’ve missed the opportunity 10-years ago and you’re waiting anxiously to accumulate cheap stocks listed on KLSE, just be patience and hold on to your cash. Refrain from any new expensive purchases such as new car(s) or house(s) because your investment from the cheap stocks would reward you handsomely. It is no-brainer that the more the current ruling government screw-up, the better it is for us because the stocks would tumble further. That’s the whole idea – to scoop as cheaply as possible *grin*.

Najib Badawi swapped portfolioToday, PM Abdullah Badawi handed the key finance ministry post to his Deputy Prime Minister Najib Razak and hinted he might leave the powerful job earlier than 2010 as planned. At the same time the PM is assuming Najib’s Defence Ministry post, raising many eyebrows. On the surface it looks like he (PM) began to handover and delegate more duties to Najib, obviously to appease critics within his own party, UMNO. However that didn’t stop many speculators from thinking of the unthinkable – with the armed forces at his disposal, he could just execute desperate action(s) *sweating* soon. The laughing stock about the whole portfolios swapping story is indeed about the incompetency of both PM and his deputy in their new respective portfolios.

It’s no secret that the PM knows nuts about economy 101 so it was kind of disastrous as far as nation’s economy management is concerned. And now the same guy is toying with the military equipments? The same goes to his deputy Najib who knows nothing about macro and micro economy except the billions of dollars stashed inside the vault. The joke of the town was that the happiest person with this latest portfolio swapping was Rosmah (not sure what was the reason though) *grin*. But the most disturbing statement that came from the PM’s mouth was that opposition leader Anwar is a threat to national security (you meant UMNO’s security PM?) and the country’s economy. He said Anwar had spread wrong information of the country’s economic stability overseas to the extent that investors had reported that Malaysia was not a good country to invest in due to the political instability.

badawi anwar ISAPardon me but every Tom, Dick and his dog knew the political landscape has changed the moment the Mar 8 tsunami hit the nation. An estimated RM125 billion of capital had left the country in the fist half of the year. It would be an insult to assume Deutsche Bank and Nomura’s KLCI target of 975 and 960 points respectively were the result of Anwar’s naughty act. Instantly rumors were flying like wild fire that PM was actually hinted that Anwar could be next on the list to be arrested under the draconian ISA. So, could Anwar’s second attempt on the premiership be dashed again from the brutal yet effective ISA? It looks very likely unfortunately.

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Scooping is good, but when is the market going to bottom up is the million dollar question…

precisely avatar … nobody knows when is the bottom, hence the best idea is probably buy or sell in stages or whenever the price meet your target price …

cheers …

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