What’s In Store for 2008
Recently, there has been much talk about the US sub prime market woes leading to the decline in Malaysia stock market and investor sentiments in general. Let us consider the Denver homes for sale as an example. Why Denver? Because I love John Denver 😉 But really, if the whole of US sub prime market is affecting Malaysians, then Denver would also be a contributing factor. Therefore, no matter which city I choose, it’s theoretically the same.
Take this home as an example. A beautiful 3,364 square feet bungalow that consists of 4 rooms, 3 baths and a basement. Know how much is it going for? Only US$380,000. Now, now, don’t convert it to Malaysian Ringgit. If you are in the US and earning US Dollars, this is equivalent to your RM380,000 in Malaysia. Where in Malaysia can you get this kind of house at this kind of price?
Probably the sub prime market did deteriorate in the US but why is it affecting us or did it really affect us? According to some “finance” friends that I spoke to, it is their opinion that the problem has not fully blown out of proportion. It may be worse next year.
So, let this be a forewarning to us as we approach the end of 2007. The potential US sub prime market problem in 2008, the imminent petrol price hike in 2008, the imminent toll increase in 2008, the potential electricity utility tariff increase and the forthcoming bundling of Indah Water charges into our water and sewerage bill.
2008 is going to be a year of belt tightening. Perhaps Nostradamus would agree with me.
