How to Save Capitalism ? Michael Schuman (Time)

Something's gone wrong with the global economy. But there are ways to put things back on track.

The solution is to encourage more capitalism.

The author suggested that governments must not rescue banks. Only freer markets can ensure that wrongdoers lose and do-gooders win.

Secondly, to encourage more corporate governance for better financial management and moral justification for a capitalist system.

So, what is the proper definition for capitalism ?

Capitalism biggest opposition is communism. Period.

Capitalism is a meritocracy that rewards the hardworking and talented. However, the biggests problem with capitalism is the widening gap between rich and poor. What about equal opportunity ?

There can never be. It is never perfect. It is like trying to make things right for a specific period of time. Does it means that parents who can afford early education for kids must defer sending childrens to pre-school so that it will create more equality for others who can't afford. It doesn't make sense either.

The solution is to encourage a freer economy ? Yes but we need more than that.

Two Generations Home Loan ?

I can't actually believe this is going to happen ?

With such big land and small population in this country.

Looks like the country has ran out of idea of uplifting the economy.

Car Makers Trade-Off Economy To Protect Products and Brands

This is one strategy cope with bad economy.

Toyota cut production for 2009

GM, Chrysler to cut dealers

It is the same for crude oil production.

Rebuilding A Nation (Barack Obama)

http://www.youtube.com/watch?v=T8R8jIYWJTA

Examples of Big Ideas

1. During the civil war - Railroad tracks from one coast to another.
   
2. During the industrial revolution - System of public high schools
   
3. During War - Colleges

Focus Areas:

1. Energy
   - Clean renewal energy
   
2. Health care
   - Health insurance for american children
   - Technology
   - Seeking a cure for cancer in our time
   
3. Education
   - Every child has access to a complete education
   - Need more reforms (discipline, innovative programs)
   

Government Is Creative

Sometimes the Malaysian's government is quite creative.

One example is the announcement that most of the vehicles in Malaysia is more suitable for using RON92 petrol.

Of course, if you consider motorcycle to be vehicle, that counts.

Otherwise, this is a bit like tipu kanak kanak...

Let me tell you why... I am a driver of the most popular car in Malaysia, the Proton Saga Iswara 1.3 special edition and guess what is the recommended petrol by Proton itself ?????

RON 97.



Damn it .... if my car can support RON 95 I would be so happy, because it is so damn cheap right ? I know my mechanic almost want to 'rape' because because I tried that once for certain period... and he felt like 'raping' me.

So, how can most cars in Malaysia are suitable for RON 95 ler ?

Somemore RON 92 is only sold by Petronas in certain petrol station only...

Lower Interest Rate for Malaysia Credit Card Usage

Credit card interest rate now is been lowered, the lowest being 13.5%

However, most of the other alternatives financial funding is still lower than this offering such as credit transfers, personal loan using credit card as collateral.

Alliance bank offers 6.99% of personal loan.

This suggests it doesn't affect the banks anyway, since they can survive on even lower interest rates.

This is simply a way to encourage more credit card usage.

The Economy Is Getting Bad ?

Check out here for moody situation in Singapore.

I was at Mosin mamak near my house yesterday night at about 10pm and guess what ?





There was just a handful of us.

Maybe it is an unpopular mamak; at least not like before.

Looks like everybody is going to save money into the walls.

The End of Financial Boom

Just like the dot-com bust which sent many budding technopreneurs into nowhere I foresee similar fate for those in the financial industry.

The financial industry is simply using money to make money. The skill sets required are financial, accounting, economic and business alike. Well, I can say that for the past 10 years, those with such skill sets are really well fed and the their time is up now.

But I don't think that the situation would immediately sent such talents into jobless mode, affected ones would be those involving in high-growth potential, such as sales, marketing, consultancy and optimization.

This is also the start of the end for those dealing with credit card sales and I suspect that many people would be terminating multiple credit cards because the banks will not be blessing too much tolerance towards unpaid dues. In short, consumers have to cut short on spending future money.

I think that in the near future and probably the next 5 to 10 years, we need more 'financial police' whose job will be a little boring compared to the ancestors as such that the core function is to 'audit' things out; to right wrongs. These people would require to have skill sets of accounting, financial, business, economics and at least some portions of legal.

In other words, the financial industry needs to get back to fundamental now and not high-risk and high-growth. The ICT industry has been surviving on low-risk low-growth mode for the past 10 years.

No Money No Talk - Tricky

It is apparent that The Bush administration has been under attacked for some period.

But USA has always been leader in everything not until the recent Olympic games. That doesn't matter anyway.

The point is that USA has got everything.. they got strong public sector, private sector and individuals.

The recent financial market turmoil shouldn't be a public sector fault, the fact that these financial institutions are global and private.

Current US goverment (The Bush administration) sees this as an opportunity to save the day, by suggesting to use federal funds to bail-out those troubles institutions lead by private business commandos. It isn't hard to propose this because it wasn't the government's fault, now they have an opportunity to be recognized otherwise.

But it seems that things are not getting easier.

The question now is what matter most... Do you want to save the economy, business or people ?

Looks like they need another miracle.

USA Government also Helps the Bank

Even the US government is going to help the financial institutions.

Experts say that it is necessary.

Not just in Malaysia.

Last Minute Only

The biggest thing about this Petrol price rise in Malaysia is that people are just not ready.

Due to the fact that Malaysia has been living under the "Bolehland" culture where even many don't believe that we are superior, but in certain ways, Malaysian feel that we are lucky in many ways.

Nobody, even Lim Kit Siang, would have expected that oppositions would take five states in the recent general election. Barisan National is still recovering from shock.


And same goes to the inflation problem, people are just caught off-guard.

Some examples quoted in the newspaper.

1. Depend on God
   
2. Working Extra Jobs (still not enough)

I have spoken to some people with high rise incomes and they think that the petrol price of RM 2.70 is justifiable. Of course, these people can afford to pay for it.

But not the majority who are unprepared.

The government is looking into a system for which people can buy in bulk. This is not a bad suggestion actually.

Personally, I feel that if the inflation problem is left unchecked, Malaysian would be forced to undergo unprecedented social evolution which marks the beginning of complex social-economy ecosystem.

When the sole-breadwinner is not able to make ends meet, options would have to be opened up.

Unless, someone can manage to invent in time a superfood and this will kill the food industries along the way.