In economic terms, recession means the reduction of a country's gross domestic product (GDP). Depression means terrible economic slump. To distinguish between recession and a depression in a simple word is “A recession is when your neighbor loses his job”, “A depression is when you lose your job” The previous depression was started in 1929 and ending in the early 1940s. Most of us including our parents didn’t feel the pain during this period since many of us are not in this world yet. Are we going through the same cycle now? Yes, it’s complicated. and even economists and other experts can’t agree on just how bad it will get. At this point in time, there's nothing but a big-fat-gigantic depression coming through the front door and everyone but the most naive and "true believers" knows it. Its gonna be very, very bad this time compare to 1997 and 2001. Im working with one of the leading semiconductor company in the world. As of now, in Malaysia it self 2000 contract workers were already lay off. It’s very painful for you to see your collogue and friends leaving the company due to unavoidable circumstances. I read the internal bulletin from the CEO and Vice President of the company that there will be 3400 jobs cut in my company worldwide very soon. It’s is depression for us in our company thinking when will be our turn. From where the latest crisis started? Interest rates were lowered immensely. This made cheap money available encouraging many to buy a house, perhaps also because they believed that a house was, compared to stocks, a safe investment. Due to a lack of regulations came into existence banks could now sell on mortgages in large bundles. For example im a bank, if you are only entitled for 200k loan to own a house, but I will release you a loan of 500k without checking whether can afford it. I will just sell the loan to you of course with a mortgage. Later people will not afford for any mortgage. Those who bought the mortgage from banks will understand that its were worth nothing. Then they need money to settle that with the banks and need to pull money from the stock market. On the other hand the banks also couldn’t sell the plenty of mortgage that they bought. So they will stop lending money and the people had to stop buying, lower demand for everything and its go on. In a simple word it’s a chain reaction and it will hit everyone in the world. But most of the time, the most impacted party will be the manufacturing group which im am in.
But the impact for this time is going to be huge. There are plenty of manufacturing plants were shutdown due to softening in demand. I was shocked to read the news, the #1 semiconductor INTEL shut down two of their plants in Penang and caused 6000 of their people lost jobs. Few days back Panasonic shut down their plant in Melaka. But the major players in the world market has to come out with good approach in getting rid of this recession. Was shocked to read in one article that projected 50mil people will lose their job by end of May 09. But there are other experts were saying that the world economy will be back to normal on 3rd Q this year.
Malaysian government has to come out with some good policies as well. Provide accessible credit for business. Business should be encouraged by the government to compensate for unemployment. More businesses mean more jobs for the people. Control the unnecessary expenditures in other fields such as – military, politics and huge construction. Im just fedup with Malaysian politicians, read the news just now that two assembly man from the opposition party in Perak resigned and going to have a by election soon and waste the people money again . I think they use their balls to think most of the time. No matter the national line up or the opposition, they are the same. Coming to politics to benefit themselves and their family. I didn’t hear any good policy was introduced so far to battle the current economy crisis. They are more interested in seeking justice of lock up deaths which is not the priority as of now. Lets the human rights committee takes care of that. It’s sad to see a person who’s holding a high rank position burning the American flag for no reason. If they want to condemn the war in Gaza this is not the correct way. Wonder why every politician forgot that Malaysia is a dependent country in terms of economy and provoke the poor uneducated Malaysian to go and boycott the American products. If they are really genuine, they must ask the Malaysian from stop working with American company and lets see how many hundred thousands will lose their job. Can the government feed them? What will happen if America pulled out all their investment in this country and banned Malaysian products.. Can Malaysia survive? I bet you, with an immediate effect Malaysia will be the next Indonesia. I just hope that the current economy crisis will over very soon. We can’t afford keep on going like this. Let us stand together and get the economy recover soon.
But the impact for this time is going to be huge. There are plenty of manufacturing plants were shutdown due to softening in demand. I was shocked to read the news, the #1 semiconductor INTEL shut down two of their plants in Penang and caused 6000 of their people lost jobs. Few days back Panasonic shut down their plant in Melaka. But the major players in the world market has to come out with good approach in getting rid of this recession. Was shocked to read in one article that projected 50mil people will lose their job by end of May 09. But there are other experts were saying that the world economy will be back to normal on 3rd Q this year.
Malaysian government has to come out with some good policies as well. Provide accessible credit for business. Business should be encouraged by the government to compensate for unemployment. More businesses mean more jobs for the people. Control the unnecessary expenditures in other fields such as – military, politics and huge construction. Im just fedup with Malaysian politicians, read the news just now that two assembly man from the opposition party in Perak resigned and going to have a by election soon and waste the people money again . I think they use their balls to think most of the time. No matter the national line up or the opposition, they are the same. Coming to politics to benefit themselves and their family. I didn’t hear any good policy was introduced so far to battle the current economy crisis. They are more interested in seeking justice of lock up deaths which is not the priority as of now. Lets the human rights committee takes care of that. It’s sad to see a person who’s holding a high rank position burning the American flag for no reason. If they want to condemn the war in Gaza this is not the correct way. Wonder why every politician forgot that Malaysia is a dependent country in terms of economy and provoke the poor uneducated Malaysian to go and boycott the American products. If they are really genuine, they must ask the Malaysian from stop working with American company and lets see how many hundred thousands will lose their job. Can the government feed them? What will happen if America pulled out all their investment in this country and banned Malaysian products.. Can Malaysia survive? I bet you, with an immediate effect Malaysia will be the next Indonesia. I just hope that the current economy crisis will over very soon. We can’t afford keep on going like this. Let us stand together and get the economy recover soon.
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