Assets bubble...

What happen kalo assets bubble burst?? Easiest way to tell civilians are harga rumah akan jatuh..ekonomi akan drop balik.. eg of recent assets is the 2010 financial crisis..some economists said that US assets bubble burst, so harga rumah dorg dropped giler..coupled with higher interest rate environment and unreliable-yet-still-be-given-higher-loans-approval-borrowers tak leh nak bayar loan rumah dorg..developer tak dapat payment..dorg dah stuck..dah logjam kat situ..developers tak beli brg..ekonomi tak jalan..biler tak berniaga..tak nak rugi..peniaga buang pekerja..so jadilah masalah yag berkait antara one another..end of US story...

So for those yang wanna buy a property a.k.a residential property especially..what you should do is detect/study first bout the macroframe of the economy. ader tak signs of assets bubble..how nak tgk...ermmm..can us housing price index..the prices naik so fast tak..kalo to accelerate sebab aper..kalo tak der reasons kukuh so may be ader bubble kat situ..

Kalo curious google jer..byk news talked about this issue..India..US..malahan ader economist said that further US stimulus may spawn Asian asset bubble..why?? because investors dah start eyeing higher yielding assets...mengapa investor sought ASIAN assets..ermm..sebab interest rate emerging markets mcm ASIAN countries tinggi..macam mana nak ckp..ok macam nie.. pinjam duit kat negara yang interest rate rendah..contohnya skrg nie kat US yang almost zero interest rate..pinjam RM100 bayar kat bank pun about RM100 gak becoz almost zero interest kan US charge..duit ni gi invest kat negara yang interest rate tinggi cthnya malaysia yg sekrg nie interest around 2% (nie namanya carry trade activities)..tak yah invest la..simpan dalam fixed deposit pun tak per..akan dapat 2% something la per annum ..


OK mathematical formula jap.. RM100 x 2.5% (katakan fixed deposit dapat rate nie)..after setahun dalam bank dah ader RM102.50..kuarkan duit nie sumer..and bayar balik la RM100 yang dipinjam dari hari tu..dah dapat RM2.50..macam nie la investors buat duit..investors punya duit bukan RM100 jer..may be RM100K..so keuntungan die braper...kire sendiri...

So untung ker rugi beli assets biler dah burst?? ermmm..income fixed tak..terjejas tak income kalo ekonomi jatuh..kalo income fixed jer...recession proof..it is a gud opportunity to buy assets..kalo tak fixed..paham2x sendiri la..

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