Today, reports of eventual raising of interest rates by the United States Federal Reserves was greeted with optimism locally - though there will be a small portion of households and companies which will be hurt by higher borrowing cost next year. The reason? "The higher rates will be a positive sign of a sustained recovery in the largest economy", according to him. "The alternative of continued prolonged low interest rates will likely lead to borrowing excesses and financial market instability." Most economists expect the rate hike to take place in the second half of next year.
Personally, I view this as a growing sign of the "implosion" of the United States as we know it. The steps so far taken by the US have failed to cut back on the debts in the trillions. Neither has the economy grown, nor the number of jobs drastically reduced. The steps taken had however inflated the stock market. But true fundamental issues have yet to be solved. Hence, its pretty worrying what the future entails. Next year will be a critical year especially mounting up to September. I suspect that US economy though showing some "improved" signals will decline towards August to October season.
China's October PMI numbers point to cooling economic environment. A survey by HSBS/ Markit showed a slight picking up in growth in new orders and new export orders, fell to their lowest in four to five months.
Personally, I view this as a growing sign of the "implosion" of the United States as we know it. The steps so far taken by the US have failed to cut back on the debts in the trillions. Neither has the economy grown, nor the number of jobs drastically reduced. The steps taken had however inflated the stock market. But true fundamental issues have yet to be solved. Hence, its pretty worrying what the future entails. Next year will be a critical year especially mounting up to September. I suspect that US economy though showing some "improved" signals will decline towards August to October season.
China's October PMI numbers point to cooling economic environment. A survey by HSBS/ Markit showed a slight picking up in growth in new orders and new export orders, fell to their lowest in four to five months.
1 comment:
Given the recent developments in the stock market, and many economists predicting an impending crash, what is your thoughts? And how will this affect the SG market?
Post a Comment