Good Times are Over?? - (paranoia hits me)

I think i have been covering this topic quite often in this blog huh? This piece of news confirms that due to low interest rates and high inflation, our rolling good times of afluenza is over. Some said its due to the high energy prices but i think its a combo a few things. First, our import bill is higher than our exports says here and therefore we are not earning as much as we are buying (on a macro level) Second, we are depending on consumer spending to move the economy and as always a low interest rate for loans and non-upward adjustment to incomes will just last as much as it is now. Thirdly, not many investors are keen on investing here in Malaysia due much better competitive edge offered by Thailand and Vietnam here in SEA and of course India and China globally(less FDI flowing in). Mix these 3 plus energy prices and you get the gist of times to come in the near future.

So what happened you may ask? 2004 was a good year yes it was but 2005 was different. This year more and more Malaysians are on debt and the ones paying the debt that has been spurring the local economy (automobiles,properties, non-essential goods) is having a hard time financing his daily essential purchases due to reduction in fuel subsidies and a not so good macro economic overview. Its a tough year for many lower and lower-middle but how bout the middle and upper-middle income class? Are they feeling the pinch yet? I dont know but from my position i am feeling quite concerned that my investments are shrinking faster due to the high "unofficial" inflation rate of about 6 percent. Damn, the more i process the more confused i have become....