Economy downturn and the worst is yet to come

The US slowdown is even bigger than predicted by analysts. And it reinforces the view, recently put forward by the IMF, that the US economic slowdown will be longer and deeper than previously thought – and have a greater impact on the world economy. The IMF report suggested that even by the end of 2008, the US economy would still only be growing at a year-on-year rate of 0.8%.

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Certainly it is an alarming news. Are we prepared? Are we ready? Today I read in the local newspaper, they are saying “Most key regional markets failed to sustain momentum earlier in the day to end the morning trade in negative territory amid persisting fears of a recession in the US.”

There are reports that many Americans found out that their currency was not as valuable as they once thought. Those on holiday in Europe would have found their trip expensive. Despite regaining some ground in December 2007, the dollar still fell 8% against the euro for the year, leaving many wondering whether the greenback could maintain its position as the world’s most important currency.

Locally, The KL Composite Index had closed lower for the past two trading days. It opened sharply lower yesterday (March 3, 2008) and stayed in negative territory throughout and same goes today where they extended their losses for the second day this week, as investors continued to stay on the sidelines on nagging concerns about a weakening US economy and surging oil prices. See my earlier post this month, Oil Prices make history again.

So guys, friends, readers, let us share ideas here on how we as a layman could overcome this situation and keep surviving in this world. What we have to do to save our monies and also our family? We may be apart but this is a Global problem….it is a world economy downturn or a world recession.

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2 Comments so far

  1. samuel on March 4th, 2008

    The main problem is where people pay for food with more than 15% of their income.

    This will lead to more civil war risks, riots and more pressure on the borders for countries with fragile economic development (which are less prone to reject immigrants).

  2. roslimh on March 5th, 2008


    Seems like the authority need to help the people. But on our end we need to find a solution too.

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